2 Aug 2011

Telecom, Vodafone drop fee dispute

11:57 am on 2 August 2011

Telecom and Vodafone will drop a long-running legal dispute after reaching an out-of-court settlement about the fees Telecom was paid by its competitors.

The settlement covers all claims between the two companies on issues related to the former Telecommunications Service Obligation, which are before the Supreme Court and High Court.

The TSO levy was the fee Telecom got from its competitors for supplying phone lines to commercially unviable rural customers.

The levy was scrapped this year, to make way for a new regime that will help pay for the government's roll out of ultra-fast broadband to rural areas.

The Telecommunications Users Association says it's good the two companies are moving on from past grievances.

The Commerce Commission and the Supreme Court have been notified of the settlement.