Bully-boy tactics aimed at stifling competiion

AUCKLAND – 25 May 2009

Telecom’s bully-boy tactics aimed at stifling mobile competition

2degrees said today that Telecom’s continued refusal to interconnect with 2degrees’ proposed local calling service was blatantly anti-competitive and a clear abuse of Telecom’s significant market power.

2degrees would like to be able to offer local “Homezone” calling services over its new mobile network. Telecom’s refusal to interconnect effectively shuts 2degrees out of this market and is preventing much needed competition.

“This is a piece of aggressive, bullying behaviour that betrays Telecom’s insecurities about competition from 2degrees’ new mobile network, which is just months away from launch,” said 2degrees Chief Commercial Officer, Mr Bill McCabe.

In 2006, the Commerce Commission determined that Telecom must provide interconnection to Vodafone on exactly the same terms that 2degrees is requesting i.e. Pure ‘Bill and Keep’ wholesale pricing with a requirement for non-discrimination of retail prices.

2degrees has tried for over two years to reach an agreement with Telecom. After exhausting every other reasonable avenue, 2degrees today commenced legal proceedings against Telecom at the Commerce Commission.

“2degrees is clearly entitled to interconnection on the terms that we are seeking. Telecom is pulling out every delaying and postponing tactic from its old book of incumbent tricks. By forcing 2degrees to apply to the Commerce Commission for a determination on something that we are so clearly entitled to, Telecom is using bully-boy tactics to continue to delay and frustrate competitive new entry into the New Zealand market.”

“The 2degrees network will launch in August and it will be a great day for New Zealand mobile customers,” said Bill McCabe.

About the 2degrees network
2degrees has committed over $250 million and is building a 2G and 3G network that is HSPA+ capable. The 2degrees network uses technology from one of the world’s leading mobile network providers, Huawei. It is capable of running on 900MHZ, 1800MHZ and 2100MHZ frequencies.

About the 2degrees company
2degrees, formerly NZ Communications, is the company that is building the third mobile phone network for New Zealanders. Company shareholders include US-based mobile communications specialists, Trilogy International Partners, as well as Hautaki Trust, General Enterprise Management Services International and Communication Venture Partners. The combined shareholders bring a wealth of international experience and knowledge which will be of huge benefit to New Zealand mobile users. In the countdown to its official launch in August, 2degrees is inviting customers to pre-register their interest on our website: www.2degreesmobile.co.nz

ENDS

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