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Telecom disappointed with Commission's decision
Friday November 6, 03:21 PM
Telecom says it is disappointed with the Commerce Commission's decision to issue proceedings relating to loyalty offers made by its wholesale business unit.
The commission announced today it had initiated a High Court prosecution for three separate loyalty offers made.
"This is utterly disproportionate response to an inherently uncertain area," said Tristan Gilbertson, Telecom group general counsel.
"It is extremely disappointing that the commission has elected to use the High Court as its method for clarifying the issue, rather than working constructively with Telecom and the industry as a whole."
The commission alleged the offers, made between December 2008 and July 2009, were likely to have breached Telecom's obligation not to discriminate between service providers, under Telecom's separation undertakings.
"Telecom Wholesale initiated the offers as a good faith competitive response to customer demand. We felt then, and still feel now, that the offers were consistent with the spirit of the undertakings," Mr Gilbertson said.
"On receiving complaints in April, we spoke to the telecommunications branch of the commission, but received no guidance or indication of concerns under the undertakings.
"In fact, earlier published reports in February indicated that the commission did not have any concerns with the offers."
However, the commission said today it considered breaches of Telecom's separation undertakings had the potential to seriously harm competition in the telecommunications market and undermine or deter efficient investment in telecommunications infrastructure.
Proceedings issued in the High Court against Telecom were seeking remedial orders and/or monetary penalties in relation to the loyalty offers, the commission said.
An investigation by the commission followed findings by the Independent Oversight Group that Telecom Wholesale's loyalty offers breached Telecom's undertakings. The commission said it also separately received complaints on the matter.
Telecom has already withdrawn the offers from the market.
Source:
- Wakefield Hospital Limited (NZX: WFD.nz)
- Contact Energy Limited (NZX: CEN.nz)
- Fisher & Paykel Healthcare Corporation Limited (NZX: FPH.nz)
- Hellaby Holdings Limited (NZX: HBY.nz)
- Nuplex Industries Limited (NZX: NPX.nz)
- Port of Tauranga Limited (NZX: POT.nz)
- Telecom Corporation of New Zealand Limited (NZX: TEL.nz)
- TrustPower Limited (NZX: TPW.nz)
- Fletcher Building Limited (NZX: FBU.nz)
- Infratil Limited (NZX: IFT.nz)
- Infratil Limited (NZX: IFT.nz)
- Telecom Corporation of New Zealand Limited (NZX: TEL.nz)
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