Telecom to pay $5m compo for XT failure

WILMA McCORKINDALE 624208548

TELECOM-PENSATION: Telecom chief executive Paul Reynolds (left) with Telecom retail chief executive Alan Gourdie in Dunedin when the compensation package was announced.

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Telecom will stump up $5 million in compensation to customers on its XT network, but some southern customers have put the faltering service on notice.

At the announcement made in Dunedin yesterday, Telecom chief executive Paul Reynolds said the package offered to customers effected by the network blackout last week was a goodwill gesture.

Southern customers would get the most compensation because they were the last to be reconnected at 10pm on Friday, after three business days without service.

In Otago and Southland there were between 70,000 and 80,000 customers on the XT network out of 200,000 throughout the country, Mr Reynolds said.

The package outlined includes a top-up for prepay phone customers and credits to users on plans, including businesses.

On top of the parcel, Telecom will give more than $250,000 to yet-to-be-determined community funds 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.

All payments would be made automatically, with prepay phone users expected to have accounts topped up this month and the remainder on their March bill.

The XT network was built to a "very high" standard but it was the nature of the business that faults could arise, he said. He hoped the package would go some way to restoring confidence in Telecom.

There would be an independent review commissioned to investigate what happened and the company's response, Mr Reynolds said.

Customers north of Timaru, who had services restored faster, will also be compensated, but by lesser amounts.

Southernwide City Lifestyle Real Estate director Tom Dowling said the offer was about what he expected.

It was hard to know how much business had suffered, "We certainly missed a few calls."

He hoped Telecom now had strategies to safeguard against similar problems in the future.

The company would stick with Telecom but they had "one last chance", he said.

Bayleys real estate Queenstown and Southland owner David Murray said compensation was a nice gesture from Telecom and the company would also stay with the service.

But if it happened again it was likely the company would reconsider its loyalty to Telecom, Mr Murray said.

THE DEAL

Compensation package for Southland and Otago customers who lost service on Telecom's XT network from Wednesday to 10pm on Friday.

Prepaid customers: $20 credit

Customers on a plan: Two weeks of plan charges, including Telecom extras.

Small-to-medium enterprises and Gen-i corporate customers: One month of plan charges, including extras.

- © Fairfax NZ News

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