One NZ ordered to pay $1.1 million for breaching 111 obligations

One NZ will also contribute $100,000 towards the Commission’s costs.

“Telecommunications services provide a vital lifeline in the event of emergencies like natural disasters and power failures,” Telecommunications Commissioner Tristan Gilbertson said. 

“As consumers move off traditional copper lines it’s crucial that vulnerable New Zealanders retain the ability to contact emergency services during a power failure,” Mr Gilbertson said. 

The Code requires providers to give vulnerable consumers a no-cost way of calling 111 in a power cut, clearly communicate key information to consumers on their options, and accurately report their consumer engagement in relation to the Code to the Commerce Commission. 

One NZ has admitted to breaches of the Code related to information disclosure, record keeping, and regular customer outreach between 2021 and 2023. 

“We’re encouraged that, once it became aware of the extent of the issues, One NZ took action to correct these breaches and cooperated fully with the Commission’s investigation,” Mr Gilbertson said. 

“It’s critical that telecommunications providers comply with the Code which ensures that vulnerable consumers can still call for help during a power cut.

“We’ll continue to monitor compliance with the Code and take action where needed to protect the interests of consumers,” Mr Gilbertson said. 

Background

The Code protects consumers who for health, safety or disability reasons rely on a landline connection for emergency calling which, following a switch from copper to fibre or another new landline technology, will not work in a power cut without an independent power supply.

If these consumers do not have any other means of contacting 111 in a power cut – such as a mobile phone – then their provider must supply a device that enables them to make emergency calls for at least eight continuous hours at no cost to the consumer.

Most providers have supplied vulnerable consumers with a mobile handset or (outside mobile coverage areas) a battery back-up for their landline service to satisfy this obligation.

Breaches of the Code under the Telecommunications Act carry pecuniary penalties of up to $300,000 for each breach and $10,000 per day for continuing conduct.