Kiwi Share charge hitch

WELLINGTON - Telecom's proposed charging for local calls to Internet service providers is likely to breach the Kiwi Share obligation, the Crown Law Office has advised.

The Kiwi share guarantees free local calling unless charges are implemented with the Kiwi shareholder's consent, Crown Law says. The information was tendered in a written response to an Alliance question to the Communications Minister, Maurice Williamson.

In answer to a further question, Mr Williamson said that Telecom had advised the Ministry of Commerce prior to the public announcement of its plans to begin charging two cents a minute for local dial-up internet connections after the first 10 hours each month, and to introduce a new 0867 number range that would enable free use by internet service providers.

"The Ministry reported to me and the Minister of Finance, the Kiwi Shareholder, that they considered that Telecom's proposal could be in breach of the Kiwi share obligations and that the issue should be referred to the Kiwi Shareholder for further consideration," Mr Williamson said.