11 Feb 2010

Fonterra puts XT mobile plans on hold

7:23 pm on 11 February 2010

Dairy cooperative Fonterra has put plans to move thousands of workers onto Telecom's XT mobile network on hold.

In January, a network fault knocked out service to tens of thousands of customers for up to three days.

The fault affected customers south of Taupo, with the worst affected in the lower South Island.

The network also failed just before Christmas, affecting tens of thousands of customers south of Taupo.

Fonterra says it has about 3000 mobile phone connections, half of which are with Vodafone and the remainder with Telecom's CDMA network.

Fonterra says it will resume the move to XT when it has more information on the root cause of the network problems and once an assessment of any future business risk has been made.

Telecommunications Users Association chief executive Ernie Newman says he is not surprised at Fonterra's decision.

Mr Newman says Telecom needs to be able to tell people exactly what went wrong and how it has been fixed so public confidence can be restored.