Telecom XT compensation announcement next week

Last updated 19:10 29/01/2010

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Thousands of Telecom XT mobile customers who have had their service cut off since Wednesday morning will have to wait until next week to hear news of compensation, the company's chief executive said today.

The problem had affected about 4 percent of the network south of Taupo.

About 30 cell sites were this afternoon still without service. They were based in the lower South Island, including Timaru, Invercargill, Dunedin and Queenstown and a number of sites across rural Southland, Otago and South Canterbury.

The cause of the outage was now under extensive investigation, but was suspected to be within the transport layer between the cell site and the Christchurch switch, the company said in a statement.

This was a different issue to the one that caused a disruption of services in December.

Telecom chief executive Paul Reynolds said he hoped the remaining affected sites to be running by tomorrow morning.

"The clear signal we have had from customers is that they want the issue resolved, so that has been our full focus today. Now we have a clear plan, the time is right to think about compensation.

"We will be announcing compensation plans for significantly affected customers early next week," Dr Reynolds said.

Meanwhile, the cellphone problem has caused major disruption at the New Zealand Masters Games in Dunedin.

"Try running the country's largest sporting event without cell phone coverage, it's a joke," games manager Aaron Joy said.

"It's not a contingency we planned for, you expect that you can rely on Telecom. I am unable to make or receive calls or texts, nobody can get hold of me, frankly communication here is by pigeons. I've got to rely on other people to get messages through.

"I've missed so many phone calls and people think that I'll get the message they have left for me but of course I don't."

Tomorrow the Games were due to begin with thousands of competitors competing in 71 activities.

Mr Joy said if the outage continued they would think about changing providers.

The network crashed about 11am Wednesday. The collapse was caused by a hardware fault in Christchurch.

David Murray, director of real estate firm Bayleys Queenstown, saidsome of his agents were on XT. The crash was "damn inconvenient. We need telephone communication 24-7 really ... a lot of our work is done over the phone with people who are out of town. It's the lifeblood of our business".

It was too early to say whether the firm had lost business because of the outage.

Telecommunications Users Association chief executive Ernie Newman said it was impossible to compensate for the inconvenience.

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"When one important call is unable to be made, the social dislocation and economic harm that arises from that is very substantial. You can't actually compensate in that sense. Five free calls tomorrow to replace one you can't make today is a meaningless gesture."

Telecom needed to rebuild customer confidence by explaining what went wrong and why it would not happen again.

There were 242,000 customers on the XT network as of September 30.

- Dominion Post and NZPA

131 comments
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RSLSRS   #131   04:53 pm Feb 01 2010

my XT phone stuffed out before the outtage even stuffed out lol. sure hope we are compensated for the money lost and time

Rachel   #130   09:56 am Feb 01 2010

What's most interesting about this (for me anyway, not an XT customer) is the reliance we've all got on this technology - to the extent that we don't think we can function without it.

Remember when address books were actually books? And we had to go find a landline to call someone? Remember faxes? Remember when you needed a PC to have access to your email?

K   #129   04:24 pm Jan 31 2010

Ha compenstation, what like the last time when they gave XT customers free calling, ASSUMING thats what every xt customer wants, i barely ever make calls so how does that compensate for the HUNDREDS of times i had to re send messages because the crappy network wouldnt send them. They need to give free credit OR free internet, calling and photo messaging.

communicator   #128   02:48 pm Jan 30 2010

my friend called telecom after 26hrs of no service to get her termination fees waved so she could move to vodafone. After much talking the guy did it and agreed that xt was unreliable and half the customer service team are on vodafone! That in itself says they don't have any father in their own company!

danny   #127   11:58 am Jan 30 2010

As an employee of the company responsible, it is my opinion that the problems have been obvious in certain circles, but only gradually realised in the wider company.

Large portions of management owe their position to a bureaucratic system that is both ineffective and rewards the dishonest or otherwise political animal - one that simply lacks the ability or education to run such a large company.

I do feel sorry for the current CEO (he seems very capable) even as he is surrounded by such incompetence.

Nigel   #126   08:48 am Jan 30 2010

Paul Reynolds must resign. Pure and simple.

chris   #125   02:13 am Jan 30 2010

Thats why u should just stick to the big corporate companies. Sure u may pay more, but at least they don't crash like the little guys who can't afford decent systems. How many little cellular companies have there been now that promise cheaper prices but have systems that fail. U'd think people would've learnt by now, but apparantely common sense isn't something that all people r born with.... suckers!

julie   #124   11:40 pm Jan 29 2010

Where did they get 4% of network south of Taupo from everyone I know on the XT network was affected. So is this an indication of how honest they will be in reporting back to us on what the problem actually is.

Andrew   #123   11:21 pm Jan 29 2010

Jeez, everyone here seems to be on the lets hate telecom trend.

Its not as if they aren't doing anything about it, two separate outages were caused by two completely different causes.

Vodafone has had quite a few outages in the last 6 months if you look at there network logs, they just have a 2g network to fall back onto,

For the Time Ive been on XT with my iphone, I have not experienced anything near the crap service Vodafone gave me, and No Drop calls. So Yes, Hardware does Die, Software Does corrupt, It is jut a fluke both outages have effected the same area as each other.

For the Benefits of XT over Vodafone and 2Degrees, and the fact they ARE trying to solve it with getting independent reviews and working with there partners, I am happy I am a XT customer on Data Sticks and Cellphones for my company, and will continue replacing the remaining CDMA devices in our company

matt   #122   10:42 pm Jan 29 2010

Haha 4%???!! I'm sure that more than 4% of their market is Wellington based, let alone the south island.


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