Telecom

Press, 5 December 1989, Page 16

Telecom

“ . Sir,—Could the managers or £ . directors of Telecom please ex? e plain why;they are charging line ® rental at such a high price. We, " the taxpayers, have paid for and “ had those --.lines erected many “ years ago, /and we consider that . they are dur assets" and, therefore, we should not be charged ' to use our own equipment. lam T ' Blenheim J there ’are" at least “ phones and at . the line “ rental of s29a moritlL this would * net Telecom the colossal sum of e $4,628,400 for Blenheim alone, in one year. — Yours, etc., A. J. FAGAN. Blenheim, t . November 14, 1989. ' ® [Linda Harrison replies for s Telecom South: “Telecom is continually upgrading, renewing and r expanding its telephone network, *. all of / which costs money. ’ Telecom also employs a large j number of staff to maintain its , . network' and to service cus- “ tomers. Therefore, taxes paid in “ the past when, the .telephone network was owned by; the Government and run by the New ; Zealand Post Office are how not r sufficieht to maintain services in s this quickly advancing, capitals intensive, highly technical Indus-; 1 try. Line rentals for residential j customers have increased re- » cently in order to more accur- » ately reflect the cost tbTelecom of providing local telephone service. In the past line rentals were heavily subsidised by toll charges. You will be aware that toll charges have recently -been s ’ reduced substantially. Telecom accepts that .the basic telephone - network. up and paid for, t , by. the people of New Zealand: t \ through; the' . payfhent of their t ' .taxes, and their payment for • ' .'telephone .services. That is why 1 / . TClecorri, had,to pay the Governt /.-‘mefit- 'the, purchase of *' the telecommunications business t " Of the fofmer New Zealand Post? ; Office, in 1987. At present, the I i > Gpvernnfent, owns all the shares r . Jif Telecom Cmporation : of hwyr. r: (as has? been ’ - / publicly .'announced) is now-con-sidering selling its shares. What ./ "the Government’does with the : proceeds of that sale (if and ! when it occurs) of course, not ’ a matter'Tor Telecom to de- ; cide.”]