Telecom And Clear Agree On “Comprehensive Clean Slate”
CLEAR Communications and Telecom New Zealand have agreed on a Relationship Package, which the two companies describe as
a “comprehensive clean slate” for the next 12 months.
The package, effective 1 October, incorporates agreements on interconnection and wholesale-related matters and commits
both sides to a more open and commercial relationship.
CLEAR and Telecom have also settled all court proceedings between them, including Commerce Act and 0867 related matters.
A few remaining minor legal issues will be subject to further discussions with a view to settling them as well.
The Chief Executives of both companies have described the Relationship Package as a commercially pragmatic agreement
between competitors who have decided to put their differences aside and to adopt a better working relationship.
Telecom Chief Executive Theresa Gattung said the approach to interconnection is innovative, setting a single price for a
12-month package of long-distance and mobile interconnection minutes.
Peter Kaliaropoulos, CLEAR’s incoming Chief Executive, said the 12 month term of the Relationship Package acknowledged
the potential for change to the telecommunications environment as a result of the Ministerial Inquiry and left both
parties free to negotiate more enduring agreements once the Inquiry’s recommendations had been implemented.
“In the meantime,” he said, “we have a commercial agreement that addresses the major disputes between us and clears the
way for both companies to get on with business.”
Highlights of the Relationship Package include:
- A set of principles under which both companies commit to a more open and commercial relationship.
- An Interconnection package that sees CLEAR pay Telecom a net figure of $35million over the year for:
- Origination and termination by Telecom of 1,828 million minutes of long-distance calls by CLEAR customers. - 49
million minutes of CLEAR–Telecom mobile calls - The settlement of other matters, including a compromise on the
termination of Internet dial-up minutes (calls to ISPs). Under this compromise, both sides reserve their positions on
Internet dial-up termination and, as part of the broader arrangements, CLEAR does not receive payment for Internet
dial-up termination. - Excess minutes outside the package will be charged at an agreed rate. - A Data package giving
CLEAR wholesale and resale access to Telecom’s JetStream, a DSL service
- A confidential litigation settlement under which both parties withdraw from the court proceedings currently between
them.