14 Oct 2011

Telecom agrees to $31m settlement

11:57 am on 14 October 2011

Telecom is to pay $31.6 million to settle a dispute with the Commerce Commission over network access.

The commission took legal action against Telecom in May, arguing it failed to provide its competitors with equal access to its network which gave it a significant commercial gain.

New Zealand's largest company still denies it breached the rules but admits it failed to live up to expectations that it would provide the service in a timely manner.

It also wants to settle the issue before it splits off its network arm, Chorus, into a separately listed company, so it can take part in the Government's ultra-fast broadband initiative.

Telecommunications Users Association chief executive Paul Brislen says the company has taken a sensible approach in getting the issue sorted.

The Commerce Commission will divide the compensation among Vodafone, Orcon, CallPlus, Compass and Airnet.