Fledgling mobile operator 2 Degrees is accusing Telecom of bullying and says it has lodged a complaint with the Commerce Commission.
2 Degrees says Telecom has refused to provide the company access to its fixed line network, so it can offer home-calling services over its soon-to-be-launched mobile network.
Chief Commercial Officer Bill McCabe believes 2 Degrees is entitled to access.
He says the Commerce Commission made a very clear determination in 2006 saying that Telecom must give Vodafone access to its fixed line network.
That ruling was specific to Vodafone.
However Telecom spokesperson Mark Watts says his company has offered commercial terms to 2 Degrees on the same basis as the deal it already has with Vodafone.
He says the preference is to reach a commercial deal with 2 Degrees on terms that suit both parties.