Alca-Lu to pay $72m for network failures: report

Nicole McCormick
11 May 2010
00:00
News
Daily News

Alcatel-Lucent has reportedly agreed pay NZ$100 million ($72 million) in compensation to Telecom New Zealand over its frequent 3G outages.

The compensation payment was discussed during a meeting between Alcatel-Lucent chief executive Ben Verwaayen and Telecom NZ executives in Auckland last week, said BusinessDay, without citing sources.

Alcatel-Lucent declined to comment.

A report into the network problems by UK research firm Analysys Mason found that the W-CDMA network was unable to handle the migration of customers from Telecom NZ’s CDMA service, despite the fact that expected traffic was within Telecom’s forecasts.

Analysys Mason recommended that Telecom NZ put the brake on taking on new customers until the network can be improved and upgraded.

Telecom NZ has already paid NZ$9 million in compensation to customers affected by network outages, which occurred over a four-month period beginning in December.

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