As per media reports, no agreement could be reached by Mobile entrant 2degrees and Telecom on interconnect issues. The issue would otherwise have led to an eventual 2degrees 'Homezone' product offering.

Since a PSTN environment would not be operated by 2degrees, it is looking forward to an interconnect deal with Telecom, which will let its customer base operate their mobiles as a quasi landline. It must be noted that the eventual offer would be quite similar to Vodafone's Homezone offers that provides local calling rates on mobiles when users are in their Homezone.

What 2degrees has in mind is the deal same as a 2006 Vodafone deal, which was carried via a Commerce Commission determination.

According to 2degrees chief commercial officer Bill McCabe, 2degrees is clearly entitled to interconnection on the terms that we are seeking.

McCabe said further, "Telecom is pulling out every delaying and postponing tactic from its old book of incumbent tricks. Telecom is using bully-boy tactics to continue to delay and frustrate competitive new entry into the New Zealand market."

If adhered to Telecom, then 2degreees has already been offered a commercial deal by it on the same terms as the agreement it has with Vodafone.

(via TopNews New Zealand. Contributed by Surjit Singh)