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Friday, May 1


Telecom New Zealand said today Vodafone had threatened legal proceedings
over the launch of Telecom’s new XT mobile network.

“This is a piece of aggressive behaviour that betrays Vodafone’s
insecurities about competition from Telecom’s new XT mobile network, just
13 days away from launch,” said Telecom chief executive Paul Reynolds.

“Telecom will vigorously resist the request for an injunction, and we
remain on target to bring world-class 3G mobile services to New Zealanders
from 6.30pm on 13 May.”

Telecom’s compliance with the terms of its licences was recently confirmed
by the Ministry for Economic Development, as part of its investigation
into interference issues between the WCDMA technology used by Telecom, and
the GSM technology used by Vodafone and NZ Communications.

Following a series of test measurements and analysis…Telecom’s WCDMA
transmitters meet the emission limits specified on spectrum licences
issued pursuant to Telecom’s management rights. (From MED letter, 9 April)

Dr Reynolds said, on the information received so far, Vodafone’s technical
problems with coverage and other issues were substantially of its own
making, and not the responsibility of Telecom New Zealand.

“They are now reaping the cost of this and other poor technical decisions,
and attempting to lay them at the feet of Telecom, just a few days out
from the launch of our XT network.

“This timing is curious to say the least, and observers will draw their
own conclusions.

“Telecom’s engineers have already been working with their counterparts at
Vodafone, for several weeks now, to resolve these issues and this process
has been working well.  We are disappointed that Vodafone has taken such
extreme steps over an issue that can be resolved in a more constructive
way – and most New Zealanders will be too.

“The XT network launch on 13 May will be a great day for New Zealand
mobile customers, whereas today will only be seen as a sign of desperation
by a global telecommunications giant,” said Paul Reynolds.