Telecom Corp of New Zealand Ltd. (TEL.NZ) Thursday criticized two reserved judgements released by the High Court after appeals and judicial review applications made by Telecom and Vodafone New Zealand (VOD, VOD.LN) regarding their obligations as service operators.

The applications related to the Commerce Commission's 2004-2005 and 2005-2006 Telecommunications Service Obligation determinations, Telecom said in a statement.

"Telecom's original decision to challenge the determinations was based on our strong conviction that the rates of return set by the Commission in these decisions are below what any reasonable investor could accept for large-scale infrastructure investments," said Telecom Group General Counsel, Tristan Gilbertson.

Telecom said it was unsuccessful in its appeal and judicial review applications. Vodafone succeeded in its appeal but not on its judicial review application.

Gilbertson said that while the case is historic and the government has recently announced a change to the TSO regime "the issues raised in the litigation still require resolution."

Telecom also noted that the reserved judgments are only one of a series of court cases relating to the current TSO regime.

"In the interests of resolving these cases, and providing greater and earlier clarity for all parties, Telecom believes there may be merit in having all TSO matters heard together in the Supreme Court at the same time," said Gilbertson.

By Rebecca Howard, Dow Jones Newswires; 64-4-471-5990; rebecca.howard@dowjones.com
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