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BT Clear Communications has made announcements today about a new Internet access service but this service is hardly free given the costs that are passed through Telecom to customers.
“Telecom certainly supports the extension of choice in the Internet access market but this is nothing more than a ‘claytons’ free service,” said Greg McAlister, Manager, Industry Services.
“If Clear really wants to provide such a service, there is already a simple way forward,” Mr McAlister said.
“With other carriers, Telecom has been able to reach an agreement that does not involve charging customers for delivering Internet traffic. Given that this works very well, we have a sensible proposal for Clear.
“In essence, Clear would need to drop its charge to Telecom of 2 cents a minute for delivery of its Internet traffic. We would not need, then, to pass on to customers the 2 cents-a-minute charge for Internet access (after the first 10 hours each month),” Mr McAlister said.
“Clear should really be paying that charge. Indeed, what happened to Clear’s promise last September that customers would be fully compensated by Clear?”
Mr McAlister said the proposal would establish a proper basis on which Clear could offer “free” Internet access in New Zealand. “We point out that other service providers which use the 0867 Internet management system are providing a broad range of Internet access options for New Zealanders, and these choices already include free access.
“Telecom is willing to work through the technical and commercial issues associated with any Internet access proposal,” he said. “Indeed, that has been the motivation behind the 0867 system which is now used by 93 Internet service providers and all carriers except for Clear.”
Mr McAlister said Telecom was ready and willing to put all issues on the table with Clear once more, and this would include the Government-proposed solution to differences over the 0867 system, in February. “We accepted that solution then and we remain ready to accept it now. On the other hand, Clear has rejected the solution.
“Whatever response is given to our offer today, New Zealanders will understand that ‘free’ access to the Internet must be funded by someone—and that needs to be commercially fair and sustainable,” Mr McAlister said.
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