Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Gattung speech raises serious questions

Gattung speech raises serious questions -

InternetNZ Media Release - for immediate release

Wednesday 1 November 2006

“Yesterday’s address by Theresa Gattung to a TUANZ audience in Wellington raises serious questions, and she should not attack those who ask important questions about how Telecom is behaving,” said InternetNZ President Colin Jackson today.

Mr Jackson was responding to yesterday’s speech, which sought to position Telecom’s response to the Government’s May stocktake announcements as constructive and restrained. The speech also attacked those who have criticised Telecom’s less than constructive responses in some areas in recent months.

“It should be a matter of serious public concern when the speech of the Chief Executive of such an important company as Telecom is at significant variance from the observed behaviour of her own company,” Colin Jackson said.

“Two examples suffice.

“Ms Gattung said ‘We’ve implemented the Wholesale Charter’, but this doesn’t seem to be true.

“Principle 2 of the Charter says: ‘The price for such products will be negotiated on a ‘retail minus’ basis…’, but Telecom did not negotiate on the price of the services that rolled out on 26 October. It presented the new prices as a done deal, and wholesale customers had no negotiation over this price at all. It is not acceptable to expect ISPs to compete at retail – on any UBS plan – at the current unilateral pricing.

“Ms Gattung said with respect to new unconstrained DSL plans that ‘The regulated price is set by the Telecommunications Commissioner not by Telecom.’

“The clear implication is that Telecom has no discretion over pricing. That is simply not true. The Commission’s price applies only to regulated UBS services, not to Telecom’s commercial offering. It is Telecom’s choice – and Telecom’s responsibility – that has seen the current price squeeze come into existence across all the UBS plans, not just entry level.

Mr Jackson was also unhappy with Ms Gattung’s attack on reasonable critics of Telecom’s behaviour.

“In her speech, Ms Gattung says that ‘We have had to bite our tongues when some in the industry make claims and allegations that get a run in the media, even if they are patently untrue.’

“Ms Gattung needs to expand on who she thinks is making untrue claims, and what claims she considers to be untrue. That is the only way her claims can be assessed and a proper debate can occur.

“The examples given above seem to show an unfortunate tendency by Telecom to shoot the messenger and use spin instead of substance when responding to legitimate criticism.
“Telecom has made improvements, but it should be judged by its actions, not its fine words.

“Its actions show a price squeeze caused by its own pricing choices.

“Its actions show that it is not following its own Wholesale Charter despite asserting that it does so.

“Its words suggest the opposite.

“These are serious questions and InternetNZ makes no apology for raising them.

“Media need to ask the tough questions, and challenge Telecom to do what it says it will do, and hold the company accountable when it fails to meet such a modest expectation,” Colin Jackson concluded.

ENDS


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news