WELLINGTON May 7 Vodafone (VOD.L) has agreed
to drop legal proceedings against Telecom Corp TEL.NZ, New
Zealand's largest listed company, after Telecom said it would
tackle technical issues which caused its new mobile network to
interfere with Vodafone's service.
Telecom said the agreement meant the new network could get
into operation by the end of the month. Vodafone had started
legal action to stop an original May 13 launch date, saying
interference from the network was affecting the ability of its
own customers to make phone calls.
"Telecom has agreed to extend its network filter
installation programme, in order to help resolve the
interference issues identified as impacting Vodafone mobile
customers," Telecom said in a statement.
The NZ$574 million ($336 million) network, which Telecom
has branded "XT", uses GSM-based technology similar to
Vodafone's, while its existing network uses the less-common
Telecom and Vodafone, a subsidiary of the British-based
mobile giant Vodafone Plc, dominate the mobile market in New
Zealand while Telecom also competes against a unit of
Australia's dominant phone company, Telstra (TLS.AX) in fixed
line phone services.
Shares in Telecom were down 5 cents to NZ$2.78 in early
Thursday trade. So far this year the stock has gained 21
percent against a 4 percent rise in the benchmark NZSX-50 index