Telecom UBS Performance Unacceptable

MEDIA RELEASE

Telecom UBS Performance Unacceptable and Impacting All Internet Providers in New Zealand Says CallPlus

CallPlus frustrated with Telecom’s denial over broadband outages and sees full structural separation as the only resolution New Zealand, Auckland – Thursday 7 December, 2006. CallPlus, New Zealand’s largest 100% kiwi owned full service telecommunications company, is appalled that Telecom is blaming its wholesale customers for its network problems. It is aware that Telecom would have expected its planned upgrades to trigger the broadband outages around the country and Telecom did not adequately consult its wholesale customers who are internet providers.

Martin Wylie CEO of CallPlus says, “Telecom has chosen to accept no responsibility and very publicly pointed the finger at its wholesale customers. For there to be an effective wholesale market in New Zealand the only long term workable resolution is full separation of Telecom, similar to the approach taken by British Telecom. Telecom also desperately needs an executive team willing to consult and work with its largest wholesale customers during its current network upgrades.

“In the month of November alone there were 24 major outages on the Telecom UBS network that impacted all wholesale broadband providers and this has increased in frequency with the introduction of the new full speed plans. The combination of these disruptions with the frequent unplanned outages, often initiated by the same upgrades, means the broadband service experience is simply unacceptable by anyone’s standard.”

Wylie continues “CallPlus has invested significantly in its network design and infrastructure for the broadband services we provide. The public needs to be aware that these issues have nothing whatsoever to do with the internet provider’s ability to cope with full speed broadband. We have been ready for a couple of years when we started lobbying for it! A wholesale partner is needed, whose interest is in building business relationships and working with its key customers, not focused on protecting a monopoly retail business.”

Wylie concludes, “Some internet providers are claiming that they have not been impacted by these outages. This is incongruous with notices on their web sites and customer complaints. Perhaps being smaller providers they haven’t noticed, but all internet providers are impacted by these outages and that means all broadband customers.

“Over the last two months CallPlus has fast tracked a significant investment in our core infrastructure to counter the impact of the frequent outages in the Telecom UBS network. The final deployment of this equipment is scheduled for completion next week and our customers will notice a significant improvement.”

ENDS

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