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Schedule: Part III - Interpretation


This Document is Archived


Telecommunications Service Obligations (TSO) Deed for Local Residential Telephone Service

[ Last Updated 14 November 2005 ]


Real Price Calculations

12. Real price calculations under Principle 2 will be made using the Consumer Price Index (for all groups as defined at 1 November 1989) as deflator. The standard residential rental as at 1 November 1989 (pre-GST) was $27.80 per month.

Other Definitions

13. In this Deed, except where the context otherwise requires:

13.1 commencement date means the commencement date of the Act;

13.2 confidential information means all information which is confidential, proprietary or commercially sensitive to Telecom;

13.3: connect speed means the data speed a standard modem and standard associated software train to when the Telecom residential customer first connects via a dial up connection to an ISP, as measured from the demarcation point at the physical premises of the Telecom residential customer to the point at which the call terminates;

13.4 dialled means dialled up, and to avoid doubt, does not mean accessed through a permanent or dedicated connection;

13.5 exchange of letters between the Crown and Telecom in 1997 means:

  1. the letter dated 12 August 1997 from Telecom to the Crown; and
  2. the letter dated 1 October 1997 from the Crown to Telecom;

which are annexed to this Schedule for ease of reference;

13.6 existing residential line means a Telecom residential line (not being a party line or second line) which at the commencement date is an active connection;

13.7 IPNet means the Telecom network known as "IPNet";

13.8 ISP means Internet service provider;

13.9 Kiwi Share means the fully paid special rights convertible preference share having the rights and limitations specified in clause 3 of the First Schedule of the constitution of TCNZ;

13.10 Kiwi Share agreements means the specified KSO, the KSO, and any contract, arrangement or understanding between the Crown and Telecom in connection with the specified KSO or the KSO entered into prior to the date of this Deed;

13.11 Kiwi Shareholder means the Minister of Finance on behalf of the Crown, as holder of the Kiwi Share;

13.12 KSO:

13.12.1 means the obligations that were set out in clause 5 of the First Schedule of the constitution of TCNZ (as it read immediately before the commencement date); and

13.12.2 includes:

  1. the letter of 1 October 1997 headed "Telecom Directory Assistance Proposal", from the Minister of Finance to Telecom: and
  2. the letter of 15 September 1999 headed "Telecom 0867 Initiative", from the Minister of Finance to Telecom; and
  3. the letter of 15 September 1999 headed "Telecom 0867 Initiative", from Telecom to the Minister of Finance;

13.13 KSO letters means the letters described in clause 13.12.2 of this Schedule;

13.14 kps means kilobits per second;

13.15 line means a line connecting the Telecom residential customer's physical premises to the Telecom PSTN;

13.16 NSBC means non-switch based concentrator;

13.17 NSBC linked means where the line is connected to an initial telephone service concentration stage which then connects the user to a trunked line on a telephone exchange, as opposed to a line directly connected to a remote telephone exchange that then extends dial tone back to the user. This includes:

  1. multi-access radio systems and concentrators;

but excludes:

  1. the remote line unit that is part of the switched network;

13.18 outage in an access network means:

  1. a planned outage in an access network made by Telecom acting as a reasonable and prudent telecommunications service provider; or
  2. an unplanned outage in an access network beyond Telecom's reasonable control;

13.19 parties means TCNZ and TNZL (together), and the Crown; and party means TCNZ and TNZL (together), or the Crown (as the context requires);

13.20 service includes part of a service;

13.21 specified KSO means the provisions of Article 11.4 of TCNZ's Articles of Association adopted on 11 September 1990, as subsequently set out in clause 5 of the First Schedule of the constitution of TCNZ;

13.22 specified matter beyond Telecom's reasonable control means any isolated matter of the following kind (whether or not constituting an event of force majeure):

  1. a matter for which a third party carrier or ISP is responsible such as impairment of the third party carrier's network or a failure by the carrier to connect a call that is handed over by Telecom to the network of that other carrier;
  2. an abnormal traffic condition caused by a third party, such as abnormally high calling volumes generated by radio or television promotions;
  3. an adverse effect from electromagnetic interference from a third party source (such as interference from electric fences), house wiring or customer premises equipment (such as computers and computer modems); or
  4. a breach or likely breach by a third party carrier or ISP of any agreement or arrangement with Telecom, or any failure to reach such an agreement or arrangement, which relates directly or indirectly to local residential telephone service and in respect of which Telecom suspends, restricts or refuses to supply services to the third party;

13.23 standard call is a dialled, switched communications service connection between two points lasting for the duration of the call, requiring an analogue transmission bandwidth of no greater than 3.1 kHz;

13.24 standard residential calls means standard voice calls, standard facsimile calls and standard Internet calls;

13.25 standard residential rental means the standard residential rental as it was at 1 November 1989 ($27.80 pre-GST) as adjusted pre-GST from time to time after that date in accordance with:

  1. prior to the commencement date, the predecessor provisions to clause 7.2 of the Deed under TCNZ's Articles of Association and TCNZ's constitution; and
  2. on and from the commencement date, clause 7.2;

13.26 standard voice call means a call described in clause 2.1 of this Schedule provided by Telecom to Telecom residential customers in accordance with Telecom's usual terms and conditions, and not including any of the calls and services described in clause 3 of this Schedule;

13.27 TCNZ means Telecom Corporation of New Zealand Limited;

13.28 Telecom means, at any time, TCNZ and those of its subsidiaries which supply in New Zealand local residential telephone service and, if the case or use requires, includes a reference to TCNZ or any such subsidiary alone or in any combination;

13.29 Telecom acting as a reasonable and prudent telecommunications service provider means Telecom acting in the same way as a reasonable and prudent telecommunications service provider with:

  1. comparable network characteristics;
  2. a comparable physical and legal environment; and
  3. comparable telecommunications service obligations;

would act;

13.30 Telecom local calling area means a Telecom local calling area as described in Telecom Call Charging and Network Numbering document as at the commencement date;

13.31 Telecom residential customer is a Telecom customer with a residential line taking local residential telephone service in accordance with Telecom's usual terms and conditions;

13.32 Telecom's fixed business means Telecom's New Zealand fixed business including local access and calling, national and international tolls, data services, and value added services associated with the foregoing (but excluding businesses such as the International, off-shore, information services (for example, Telecom Directories Limited, Xtra), Mobile, Paging and Payphones businesses);

13.33 Telecom PSTN means the part of the Telecom network over which local standard residential calls are provided by Telecom;

13.34 terminate means:

  1. in the case of standard voice calls and standard facsimile calls, terminate at the demarcation point of other physical premises;
  2. in the case of standard Internet calls to access IPNet, terminate at a point immediately before the IPNet port;
  3. in the case of any other standard Internet calls, terminate at the demarcation point between the Telecom PSTN and the physical premises or fixed line of the ISP, or as the case may be, at the handover point between the Telecom PSTN and the network of another carrier (not being a cellular, mobile radio, paging or other non-fixed PSTN network);

13.35 TNZL means Telecom New Zealand Limited;

13.36 unsuccessful in relation to a call attempt, means the call attempt is rejected solely as a result of a lack of Telecom network resources;

13.37 working day means a day other than a Saturday, a Sunday, or a statutory holiday in Wellington.

Interpretation

14. The headings, except to the body of clause 11 of this Schedule, are for convenience only and do not form part of this Deed.

15. References to clause numbers in this Deed are to clause numbers in the Deed (not including this Schedule), unless otherwise specified.

16. The singular includes the plural, and vice versa.


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