19 Oct 2011
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Watchdog happy with telco's refund efforts

In a continuation of Telecom’s efforts to tie off loose ends before separating from network arm Chorus, the company has reached a settlement with the Commerce Commission over a breach of the Fair Trading Act.

The breach was caused by a software fault in Telecom’s broadband data usage meters. Between November 2010 and June 2011, over 47,000 Fast IP Direct customers were overcharged, reduced to dial-up speed, or upgraded their plans as a result of the fault.

To date, Telecom has refunded more than $2.7 million to customers.

Stuart Wallace, competition manager for the Commerce Commission, says the settlement reflects Telecom’s timely admission of error and commitment to paying refunds.

"Telecom brought this issue to our attention as soon as they were made aware by their customers and have co-operated fully with the Commission,” Wallace says.

Telecom issued a statement admitting to the error on June 17.

"The settlement is the best possible outcome for those customers and avoids potentially lengthy and costly court hearings paid for by taxpayers.”

A copy of the settlement can be found here.

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