Clear Communications Ltd vs Telecom Corporation of New Zealand Ltd (A)

Abstract

Features the challenges facing an entrant in the New Zealand telecommunications market during the period 1989-1994. Clear Communications Ltd. (CCL), a joint venture owned by Bell Canada, MCI, New Zealand Television Corporation, and Todd Companies, begins offering long distance service in May 1991. The firm is dependent on access to the network of the incumbent, Telecom Corporation of New Zealand, to offer most of its services. This dependence proves to be a significant obstacle to CCL's expansion into the local business call market, particularly given New Zealand's unique 'light-handed' regulatory system. Clear ultimately spends millions of dollars in a failed four-year lawsuit to obtain better terms of interconnection. In October 1994, Chief Executive Officer (CEO) Andrew Makin must decide the future strategic direction of the firm. Related cases reference no 9-798-091 Clear Communications Ltd vs Telecom Corporation of New Zealand Ltd (B) and Case reference no 601-032-1 Clear Communications Ltd