$5m in Telecom XT compensation

Last updated 14:36 02/02/2010
Opinion poll

Is Telecom's compensation for its XT outage enough?

More than enough

Just right

Not even close

Vote Result

TEL 2.145 0.02 0.94%
TEL

Click for a detailed chart

Relevant offers

Industries

Gold mine closed down Metlifecare tackles debt targets Forsyth Barr bullish on NZ retailers ACC levies may climb again Soho subscribers and ad revenue lift Sky TV profit Tag hails Taranaki oil success Warehouse CFO quits Kiwi sales put sparkle back in jeweller Heartland steering steadily to target Gold price bumps up miner's profit

Telecom's compensation to customers affected by last week's massive XT mobile outage will cost it nearly $5 million.

Meanwhile, Taranaki Telecom mobile customers were hit again today by a separate problem which knocked out service in some areas.

Telecom's network south of Taupo crashed last week on Wednesday morning and southern customers were the last to be reconnected, at 10pm on Friday.

Chief executive Paul Reynolds announced the package in Dunedin this afternoon.

It applies to all affected XT customers based south of Taupo.

For prepaid customers, the credits will be automatically added to their balance by the end of the month. Account customers will receive the credit on their next month's billing.

The package includes:

* $10 credit for prepaid customers whose service suffered on Wednesday 27 January.

* One week's worth of plan charges for postpaid customers whose service suffered on Wednesday 27 January.

* $20 credit for prepaid customers whose service suffered between Wednesday 27 January and Friday 29.

* Two weeks' worth of plan charges for postpaid customers whose service between Wednesday 27 January and Friday 29.

Telecom Retail SME customers and Gen-i corporate customers will also be compensated.

Telecom will also be donating more than $250,000 to community projects in the lower South Island.

"We have aimed to make the goodwill gesture as comprehensive as possible, while being fair, transparent and equitable,'' Mr Reynolds said.

"We felt that it was important to take a few days to ensure we do the right thing by our customers, recognise those customers who were most badly affected, and also develop a package that allowed us to give something back to the wider communities that were also impacted.''

Telecommunications Users Association chief executive Ernie Newman says the offer is "pretty generous".

"There will be some who are not appeased… but the bulk of customers will see this as fair in the circumstances and be prepared to give them another go.

"This will probably help to underline Telecom’s mortification at this outage and their determination to make sure it doesn’t happen again."

Last week's crash was second major outage for the XT network in as many months.

TARANAKI STRUCK AGAIN

Telecom cellphone users in Taranaki were frustrated again today when two cellphone sites in the region played up.

Reports started coming in at 9.30am that Telecom cellphones in the area were not working, and several Taranaki Daily News staff were unable to make calls on their XT phones.

Ad Feedback

Telecom media representative Katherine Murphy said the matter was unrelated to last week's service degradation on XT.

"Occasionally a mobile site plays up and needs resetting, and that's what has occurred today.

"This morning at about 9.30am we became aware that two sites in Taranaki were suffering from some service degradation.

"This means that customers connecting to those sites may have had to retry to make calls or may have experienced a drop call or dropped data session.

"Text messages should have been unaffected.''

Mrs Murphy said network staff reset the two sites at about 11am, "and feedback from the region suggests that service is back to normal''.

"If customers are continuing to experience trouble they can reset their phone by removing the battery and SIM, waiting a minute and putting both items back in their device before turning it on.''

- With Taranaki Daily News

- © Fairfax NZ News

180 comments
Post a comment
Rose Lambert   #180   12:26 pm Mar 01 2010

we all pay to use the service, so they should compensate all those using thier service. they sent my daughter a txt message saying $20. will be credited to her account when she checked up on it they had only credited her $10. whats up telecom, when she rang to enquire about it they hang up on her get real telecom pay what you say your going to pay dont come up with excuses, we all pay big money to use this service

Becka   #179   01:08 pm Feb 24 2010

This compensation package is only for those customers south of Taupo right? What about everyone above Taupo?? What are they going to do for us???

YT   #178   03:30 pm Feb 18 2010

To be fair, good to see telecom's working on compensation. but when i saw that donation to charity, i felt like i bought a crapy car from a dealer but the dealer promoise to fix the street lights for my area.

well, thanks very much for your donation. but get real telecom, network is your heart, customer is your blood. look after them

GoTeamTelecom   #177   01:55 pm Feb 08 2010

I take great pleasure in knowing that most of the people switching away from Telecom after this are pretty pathetic, unreasonable people. Good luck voda with your awesome new customers. Mwuahahahhaa.

jereme   #176   01:43 am Feb 04 2010

youngsters need cellphones its how we roll... pretty simple we pay for a service and if that service is not delivered were entitled to compensation and were alowed to whinge because theyre promising something they cant deliver... xt's a joke i had my same number with telecom for 6 years.. but this xt rubbish put me off so ive gone vodafone now best decision of my life!!!!!

Gary   #175   09:16 pm Feb 03 2010

To EACH and every one of the "business" lost complainers....take a wee read of Marcus #165 comments. Here is one person who KNOWS how to run a business and guess what....? He had a contingency plan and lost no business...does not say much about the rest of the business owners. Marcus's last comment says it all

Fail to plan. Plan to Fail

Well done Marcus - you are the kind of person I would gladly do business with...

Tim   #174   05:36 pm Feb 03 2010

since when did NZ turn into a bunch of whingers and whiners, but everyone forgets about the real heroes from all of this, the engineers and techs that spent 3 long stressful days through meetings and meeting deadlines for the network, i know how this feels as i was one of the so called heroes that spent the 3 days of no sleep or anything to get the network back up and running properly, people dont actually quite understand how much hard work was put into it, and how hard it was to fix but thats another story, we got no extra compenstation for the work we did, or anything, and no thanks to any of you ungrateful peopel :(

&rew   #173   02:36 pm Feb 03 2010

@Marcus #165 - I totally agree. Anyone who relies on one thing for all their business is taking a risk, whether that thing is a cell phone, PC or paper-based organiser. If all my business contacts and appointments were in my two year old laptop, with no backups, and the hard drive failed, I wouldn't be calling HP demanding compensation.

Telecom didn't have resources in their network to get business back up and running quickly, and Mr. Small Businessman wants compensation for (potential) lost earnings. Well, where was YOUR backup plan, Mr Businessman?

All that said, I have a great deal of sympathy for cases like JoeMoe #113, missing such an important event. But I think you will find that emergency services don't rely on cell phone networks for communication.

Janet   #172   01:33 pm Feb 03 2010

Sam #168

Of course people can (and still do in parts of the world) survive without electricity.

Are you forgeting the big power failure in the lower South Island a year or two ago???? Some went without power for 3 or more weeks....but they survived.

This completely over the top "my life is over" reaction to 3 days without a cellphone is insane! The old fashion (but not so gimmicky, trendy and 'must have accessory') landline phones did not go down. Has everyone forgotten how to use a landline phone?

And Marcus #165 made an EXTREMELY valid comment to all those whinging business people.

I think the over the top reactions in here just over not being able to use a cellphone for 3 days says a lot more about our society than anything else.

Mel   #171   01:28 pm Feb 03 2010

It is not the point that 'we can survive with out cellphones' etc, the point is we are paying Telecom for a service and they are not providing! Move to Vodafone, it's the best move I ever made. =)


Show 121-170 of 180 comments

Post comment


Required

Required. Will not be published.
Registration is not required to post a comment but if you , you will not have to enter your details each time you comment. Registered members also have access to extra features. Create an account now.


Maximum of 1750 characters (about 300 words)

I have read and accepted the terms and conditions
These comments are moderated. Your comment, if approved, may not appear immediately. Please direct any queries about comment moderation to the Opinion Editor at blogs@stuff.co.nz
Special offers

Featured Promotions

Sponsored Content