Telstra and Vodafone fight for 029 customers

TelstraClear and Vodafone may have parted company, but neither is willing to give up more than 11,000 business customers at the centre of their now defunct mobile agreement.

TelstraClear signed a contract yesterday giving it access to Telecom's mobile network, allowing TelstraClear to offer a range of new mobile services and mobile, fixed line and data product bundles.

TelstraClear chief executive Allan Freeth said the deal meant the company was now New Zealand's third mobile player and its second full service telecommunications provider.

The three-year contract replaces an agency agreement which allowed TelstraClear to resell Vodafone mobile services on the 029 number to an estimated 11,000 business customers, with about 40,000 handsets.

Under the agreement, customers received mobile services from Vodafone but TelstraClear managed customer services and billing.

Large corporate and Government customers included the Inland Revenue Department, the Social Development Ministry and BNZ, which Vodafone communications manager Paul Brislen said continued to be jointly managed by TelstraClear and Vodafone.

Under the terms of the agency agreement, TelstraClear was acting as a Vodafone agent and the other 029 customers would remain with Vodafone when the agreement ended in July.

TelstraClear has a different view.

"In terms of the other (029) customers - and indeed with the enterprise and government customers - Vodafone and Telstra Clear have conflicting views about who owns those customers," Dr Freeth said.

"At the end of the day ... they go wherever the best deal and value are."

Both companies said they are contacting 029 customers and Vodafone expects to start moving them on to the company's billing system in the next few weeks.

The Telecom contract would enable TelstraClear to put together more varied bundles and more competitive pricing, Dr Freeth said.

TelstraClear-branded handsets are being organised through Telecom and international roaming will be available when the services are launched later this year.

Under the agreement, TelstraClear will use Telecom's CDMA network, but not the $300 million high-speed W-CDMA network expected to be completed late next year.

Dr Freeth said his company was keeping its options open but would discuss with Telecom about moving customers over to the new network if there was demand.

- © Fairfax NZ News