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Tuesday 2nd August 2011 |
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Telecom and Vodafone have reached a settlement after four years of litigation over the previous Telecommunications Service Obligation (TSO) regime.
The TSO, formerly known as the Kiwi Share, shared among telcos the cost of providing some services that were not commercially viable.
The litigation between Vodafone and Telecom had covered six years of decisions by the Commerce Commission on the TSO.
The two companies said their agreement would bring about the full and final settlement of all claims between them on TSO-related issues before the Supreme Court and the High Court.
Telecom group general counsel Tristan Gilbertson said the TSO funding regime had been replaced with a new arrangement for the funding of rural telecommunications services, while Telecom and Vodafone had started a joint programme to enhance rural broadband delivery.
"Time has moved on, and against this backdrop we’ve agreed it is time to put the disputes of the past behind us so we can focus on the future," Gilbertson said.
The focus now for rural residents was delivering broadband and increased mobile coverage through the Rural Broadband Initiative. Vodafone general manager corporate affairs Tom Chignell said
The terms of the settlement are confidential.
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