Optus and One.Tel shake on it - News

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This story was printed from ZDNet Australia.
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Optus and One.Tel shake on it

By Rachel Lebihan, ZDNet Australia
June 05, 2001
URL: http://www.zdnet.com.au/news/soa/Optus-and-One-Tel-shake-on-it/0,139023165,120226942,00.htm

Australia's second largest telco Optus, which threatened to pull the plug on One.Tel's mobile customers, will follow Telstra's lead and provide a further option for service continuity.

In a move which angered One.Tel's administrators, Optus informed One.Tel customers last week that mobile coverage was being provided to them as an interim measure only.

Customers were then given a week to decide whether or not to remain connected and continue to use their existing mobile numbers under the Optus brand.

However, customers would still be liable to pay an early termination fee to One.Tel for cancellation of contracts.

Optus has been strongly criticised for its action, which was branded a "corporate raid" by One.Tel's administrator.

Optus has since struck a deal with One.Tel, whereby the troubled telco's customers will be able to keep their existing phone numbers and will not incur charges associated with early termination of One.Tel contracts if they choose to stay on the Optus network.

The Optus deal comes on the back of a similar agreement which Telstra struck yesterday.

-The good news with this agreement today is that One.Tel customers are assured of ongoing service without having to change their phone number," Optus MD, mobiles, Paul O'Sullivan, said.

-Optus will continue to contact One.Tel customers over the next few days so we can explain their call plan options."

Like Telstra, Optus will pay a commission to One.Tel for every customer who chooses to migrate to its service.

Steve Sherman, Ferrier Hodgson partner and joint administrator of One.Tel, said he was pleased that a "sensible outcome" had been reached.

-A good agreement has been reached with Optus and we are pleased that we can now move forward with the many other outstanding issues we have to tackle with One.Tel," Sherman said.

"The money which Optus pays under this agreement will help make payments to One.Tel creditors and staff - as well as preserving the interests of One.Tel customers."

Ferrier Hodgson will hold its initial creditors meeting in Sydney today.