Telecom admits misleading more than 130,000 of its broadband customers, the eighth time its been in trouble over the Fair Trading Act since 2003.

Telecom XT customers needing to contact emergency services are being told to use landlines instead of their cellphones while the network remains down.

The Commerce Commission has made an example of Telecom.

Up to 400 people around NZ will have to wait until someone in their neighbourhood cancels their broadband contract before they can get a connection.

Telecom says quarterly earnings rose 9 per cent to $163m, despite falling revenues. Its new high speed XT network has also had a strong start.