TELECOM READY TO PROVIDE INTERCONNECTION LINKS

20 May 2002

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Telecom has always been ready to provide more interconnection links to TelstraClear subject to the resolution of payment and contract issues between the two companies.

Chief Operating Officer, New Zealand, Simon Moutter said Telecom continued to provide TelstraClear with approximately 1000 links despite its persistent failure to make payment for all the services currently received. “TelstraClear owes Telecom a substantial amount of money, and continues to short pay us each month.

“That situation is simply not sustainable. Telecom cannot be expected to provide TelstraClear with more service when we would, in effect, be doing so for free,” Mr Moutter said.

“All we want is a reasonable assurance that Telecom will be paid for all services we provide. That’s a standard, commercially prudent approach to dealing with a customer who has had a long history of poor credit behaviour,” Mr Moutter said.

“We have been in dialogue on this issue for months and TelstraClear is very aware of our reasonable position,” Mr Moutter said.

Mr Moutter said Telecom was also ready to provide its 0800 resale traffic service to TelstraClear as long as this service was not subject to commercial abuse. “We have assigned several hundred 0800 numbers to TelstraClear and will provide more subject to assurances that they will be used in accord with the relevant agreement between us,” he said.

Mr Moutter said Telecom was confident that its view of the situation over interconnection links and the 0800 resale traffic service would be upheld in any substantive court proceedings.

Further information:
Martin Freeth, Public Affairs Manager,
Tel 64 4 498 9361 or 027 242 0174

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