Tough task awaits new telco commissioner

By CHRIS BARTON

The yet-to-be-appointed telecommunications commissioner looks likely to have his or her work cut out in the new year, with Telecom and its rivals locked in dispute over toll-free number portability.

Telecom wrote to Vodafone, TelstraSaturn and Clear on Friday asking the trio to contribute $3.4 million to the cost of upgrading the Telecom network to accommodate 0800 and 0508 number portability.

Number portability - the ability to keep the same phone number when switching to another carrier - is a regulated service for toll-free, mobile and local numbers under the new Telecommunications Bill before Parliament.

The legislation allows the telecommunications commissioner to resolve disputes if the parties are unable to reach agreement in providing a regulated service.

Spokesman Andrew Bristol said the total cost of the upgrade was $4.2 million and Telecom was seeking to recover some of it. It was also asking the carriers to pay 1c per toll-free-number call.

Clear's industry and regulatory affairs manager, Grant Forsyth, said he was disappointed with Telecom's tactics on the eve of the introduction of a new regime for competition.

"Telecom still comes out with these sorts of delaying tactics. We're not going to acquiesce to paying these costs, just as Telecom has not in other markets such as Australia."

Mr Forsyth said Clear would meet its own costs in upgrading its network for number portability and expected Telecom to the same. He also disagreed with Telecom's proposed charge of 1c a call, saying there was no precedent for such a charge.

"Because we now won't be able to deliver the services, the user won't have choice."

Vodafone's manager of carrier relations, Francois Zegers, agreed: "Effectively they [Telecom] are asking us to pay for upgrade costs in their own network, which is unacceptable to Vodafone."

He said Vodafone had incurred significant costs itself in readying its network for number portability and had not sought to recover those from Telecom.

Mr Zegers was unsure how the matter would be resolved.

"It could have to go the commissioner if there's a continued impasse."

TelstraSaturn did not return Business Herald calls.