[Updated - Telecom responds]

Loyalty offers made by Telecom Wholesale between December 2008 and July 2009 are the subject of Commerce Commission proceedings.

The offers are believed to be in breach if Telecom Wholesale’sobligation not to discriminate between service providers under the Telecom Separation Undertakings. As part of its investigation into this matter, the Commission consulted on the meaning of ‘discrimination’ in clause 56 the Undertakings. In light of submissions, the Commission intends to provide Telecom and the industry further guidance on Telecom’s obligation not to discriminate.