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NZ First Calls For Full Investigation Of Telecom

NZ First Calls For Full Investigation Of Telecom

New Zealand First is calling for a full investigation of Telecom and its operations following fresh allegations by the Commerce Commission that the company has been overcharging its mobile phone customers.

Communications and IT spokesperson Brent Catchpole says regulation of the telecommunications industry is essential to ensure that consumers are not being ripped off by Telecom, which is still being allowed to operate in a competitive-free environment.

“Regulation will ensure that Telecom is forced to bring mobile and other charges into line with other OECD countries,” said Mr Catchpole.

“Not only has Telecom been raising the charges of its mobile phone service, it has also been given the right of way to crush any would-be competitors in the DSL broadband marketplace.

“Telecom has not been playing a fair game. It has used its monopoly in the telecommunications market to dodge setting reasonable standard rates in communications.

“The enormous profits this company sits on are a result of greed and pricing policies designed to exploit consumers who have no other choice.

“Neither Labour nor National has attempted to break Telecom’s monopoly which allows it to pay $2.8 million a year to its chief executive. Perhaps this has something to do with the size of the political donations made by Telecom.

“We need to create real competition in the telecommunications market place in order to put a stop to these continually rising rates. It will certainly be interesting to see how Telecom justifies its pricing policies,” concluded Mr Catchpole.

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