TELECOM QUESTIONS COST AND INTENT OF APPEAL

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Telecom said today it was disappointed with the Commerce Commission’s decision to appeal the 0867 case to the Supreme Court, given the millions of taxpayers’ and shareholders’ dollars already spent on pursuing an historical case based on old legislation.

The case related to Telecom’s introduction and use of the 0867 dial-up pre-fix some ten years ago, and has already been heard by both the High Court and the Court of Appeal. Both courts unanimously found in Telecom’s favour.

“In the era of operational separation, and with positive signals of change within the Commission, Telecom wishes to have a constructive and forward-looking relationship with the Commission, and it’s very much in that spirit that Telecom now needs to state its concerns publicly,” said Telecom’s Group General Counsel Tristan Gilbertson.

“The actions at the centre of the 0867 case happened a decade ago, when the telecommunications landscape was vastly different and the exponential growth of internet traffic took most people by surprise.

“We’re confident that Telecom’s actions were legitimate under the law that applied at the time – and the High Court and more recently the Court of Appeal have confirmed that, rejecting the Commission’s arguments on both occasions.

“The Commission’s penalty proceeding has been taken under the old section 36 of the Commerce Act 1986.

“The Commission has made it clear that it is seeking a law change.

“If that’s what the Commission wants, then the most efficient and least costly approach is to seek legislative change, rather than change through the courts in a case over ten years old.

“The Commission’s appeal carries a $1 million price tag for taxpayers and Telecom shareholders.

“If the Commission now wishes to participate in an open and transparent policy debate, with a view to having the relevant legislation changed by Parliament, then Telecom looks forward to contributing its perspectives,” said Mr Gilbertson.

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Contact:
Mark Watts
Head of External Media
Telecom New Zealand
0272 504 018

News Source : TELECOM QUESTIONS COST AND INTENT OF APPEAL