The Commission has advised the Minister of Communications that Telecom has complied with all of the service quality measures in the TSO instrument for the 2005/06 financial year.

Each year, Telecom is required to provide the Commission with information on its compliance with the service quality measures in the TSO instrument. The Commission reviews Telecom's compliance, and notifies Telecom and the Minister of Communications of any non-compliance.

Further information about the TSO can be found under Telecommunications Service Obligations.

Telecommunications Act 2001 Background

The relevant TSO instrument is the TSO Deed for local residential telephone service dated December 19, 2001 between the Crown and Telecom. Under the Deed, Telecom agreed with the Crown that local residential telephone service would meet the local residential service quality measures in Part II of the Schedule to the Deed.

Section 80 of the Act states:

Assessment of compliance with TSO instrument

Not later than 60 working days after the end of each financial year of a Telecommunications Service Provider ("TSP") under a TSO instrument, the Commission must -

a) Assess the TSP's compliance with the TSO instrument during that financial year in accordance with any process set out in the TSO instrument; and

b) Notify the TSP and the Minister in writing of any non-compliance by the TSP with the TSO instrument.