New telco says its 'totally legit' after earlier regulator probe

Nexus Business Solutions has signed up 100 businesses to its service. Photo / iStock

A management pair from a telecommunications company accused of shady sales tactics have launched a new telco business, Nexus Business Solutions and say the company is sticking to the books.

Stephen Morrissey and Stephen Mascarenhas were senior managers at telco company Integr8, which is the subject of an ongoing Commerce Commission probe into its sales tactics after receiving numerous complaints from customers complaining of misrepresentations.

Intagr8 offers a product known as "telephone bundling" - providing customers with telecommunications equipment such as phones, printers and security cameras alongside its telecommunications services. Equipment is usually rented through a finance company.

A spokesman from the Commission said they had received complaints dating back to 2012 which had resulted in a "compliance advice" letter being sent to the company. Initial complaints were resolved however more recent complaints around similar issues triggered a further investigation.

In its letter to Intagr8 in December 2012, a number of issues were highlighted.

"The Commission has concerns that Integr8's sales representatives may not be clearly and sufficiently disclosing the full cost of the bundled products that they are offering," it said. "The representations have led customers to reach an incorrect view that the goods and phone services that are being offered and signed up to, are available at a particular price without and restrictions/conditions."

According to the spokesman the investigation had not been resolved yet but Integr8 was co-operating.

Morrissey and Mascarenhas launched Nexus Business Solutions in February and have since signed up more than 100 small to medium size businesses. The company has offices in Auckland and Christchurch.

Mascarenhas told Fairfax Media that although Nexus did not offer a "bundled solution", it did offer the purchase, lease or rental of business hardware and equipment, telecommunication and internet services, and maintenance contracts for hardware and equipment.

He said Nexus had relationships with some finance companies but customers were free to use their own financial services if they wanted to.

"... we're totally legit," Mascarenhas told Fairfax. "[Nexus] conducts its affairs with the utmost professionalism and expects a high standard of conduct from its staff. "... aside from some minor teething issues and the occasional service issue we have received no major complaints from customers."