10 Sep 2008

2004/5 phone service cost settled

5:17 pm on 10 September 2008

The Commerce Commission has finalised the costs of Telecom supplying phone services to all New Zealand for the 2004-05 year.

The commission calculated the Telecommunications Service Obligation at $52 million, the cost of which will be shared among Telecom and other telecommunication companies.

Telecom will pay 69%, with most of the rest being met by Vodafone and TelstraClear.

The Telecommunications Service Obligation covers Telecom's obligation to provide a service to all New Zealand homes, whether it is economic or not.