TELECOM RESPONDS TO HIGH COURT DECISION

17 April 2000

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Telecom said today a High Court decision over the i4free/BT Clear Communications scheme recognises the need for Telecom to manage its network for big growth in call traffic.

“We will be considering carefully our next steps after Justice Potter’s decision to continue an interim injunction until the substantive issues can be heard at full trial,” said Greg McAlister, Manager, Industry Services.

“It is important to note the Court’s view that is it desirable and necessary for Telecom to manage the network in the face of considerable growth and changes in the nature of that growth,” Mr McAlister said.

He said the interim injunction meant Telecom could be forced at times to apply controls on access to all Internet companies using the 0867 system.

“The i4free/Clear scheme is expected to continue putting huge pressure on our network at times, with overloading a risk,” he said. “Clear and i4free are trying to exploit what they see as a loophole in how 0867 is intended to work for the benefit of everyone in the Internet services market.”

Mr McAlister said Telecom would investigate fully the implications of the interim injunction and do what it could to minimise the impact on Internet companies generally and their customers.

“We also want to work with i4free and Clear on finding a sound commercial solution to this particular situation and to all other issues outstanding between Clear and Telecom,” he said.

“Telecom totally supports the extension of choice in the Internet services market on a commercially and technically sustainable basis,” he said. “That choice includes free Internet access although not under the type of scheme created by i4free and Clear.”

Mr McAlister said Telecom would consider an appeal against the interim injunction, which will be subject to a substantive proceeding at a date yet to be set.

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