Keep in touch for more than $1000

By PETER GRIFFIN and NZPA

A new way of calculating the cost of connecting to Telecom's network means some rural users will pay more than $1000 for a telephone line.

Telecom was yesterday fending off attacks from politicians, who claim the pricing policy rips off rural users and breaches the spirit of its Kiwi Share agreement.

Telecom has scrapped its standard $61.88 connection charge and replaced it with fees based on "customer density".

That means a typical quote for the West Coast town of Karamea, 98km northeast of Westport, could be $1500.

Telecom's chief operating officer, Simon Moutter, said the Kiwi Share obligation, an agreement with the Government requiring Telecom to deliver basic phone and internet access nationwide, applied only to existing customers.

"The reality is we'll be asking them for over $1000 for their new connection. It will help reduce the size of the Kiwi Share loss but we're not going to make a lot of money off this," said Mr Moutter.

Green Party co-leader Rod Donald said Telecom's decision was outrageous.

"This callous move by Telecom takes advantage of rural people.

"Telecom is clearly breaching the spirit of the Kiwi Share agreement, and we call on the Government to enforce equitable access to telephone services for all New Zealanders."