TelstraClear seeks commissioner's help

By PETER GRIFFIN

TelstraClear has again gone to the Telecommunications Commissioner to make Telecom deliver resale services it needs to make an impact in the residential market.

Yet another breakdown in negotiations between the two carriers has prompted TelstraClear's third application this year as network interconnect and wholesale pricing are being investigated.

This time TelstraClear has the support of legislation. Under the Telecommunications Act, Telecom must supply it with residential "local access and calling services" at the retail price minus 2 per cent.

TelstraClear chief executive Rosemary Howard said that despite months of negotiations Telecom had made no move to supply the services, which are crucial if TelstraClear is to make any headway in the residential market.

TelstraClear was not happy with the discount given by the act but would live with it for now.

"Retail minus 2 per cent is not what we would expect, but we're prepared to accept it and get on with it for the time being," said Howard.

TelstraClear can offer toll calls nationwide, but can provide local calling only in areas of Wellington and Christchurch where it has its own residential network.

Success at the Commerce Commission would force Telecom to allow TelstraClear to resell its residential local calling services with all the bundled service that Telecom offers, such as Call Waiting and Call Minder.

TelstraClear customers could then pay for all their telecoms and internet costs on the one bill, something only Telecom customers can do now.

While the tight discounts would see TelstraClear make little money from reselling Telecom residential services, bundling in internet and mobile phone access would make it a better proposition.

Howard said Telecom had given no excuse for dragging the chain.

"They've indicated to us an unwillingness to deal commercially. I think they're still in denial about competition and choice and wholesaling," she said.

But Telecom's group general manager, Government relations, Bruce Parkes, said TelstraClear had rejected the deal it had already presented.

"In this case the sticking point is not price," said Parkes. "It's operating issues to make the service work that are the complicating factors."

He said the issues stopping a deal from being completed included such things as deciding which carrier was responsible for faulty lines through to who would connect or disconnect customers.

Chief executive of the Telecommunications Users Group Ernie Newman said it was time for Telecom to get real about working with TelstraClear on a commercial basis.

"It's high time Telecom just accepted that from here on in, the huge energy that it has put into managing the political system to its advantage over the past decade should be diverted into the market."