One NZ has been fined $1.1 million after failing to meet its obligations to vulnerable customers who relied on landline connections to call 111 during power cuts.
The High Court penalty follows the telco's admission of 10 breaches of the 111 Contact Code between 2021 and 2023.
The breaches related to information disclosure, record keeping and customer outreach requirements, which ensure vulnerable Kiwis can still call 111 during power failures.
One NZ would also pay $100,000 towards the Commerce Commission's costs.
When it filed proceedings in April 2024, the commission accused One NZ of "disregard" of vulnerable consumer safety and a history of breaching consumer protection laws.
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Telecommunications Commissioner Tristan Gilbertson said services provided by One NZ were a "vital lifeline in the event of emergencies like natural disasters and power failures".
"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."
The code requires providers to give vulnerable consumers a no-cost way of calling 111 in a power cut, clearly communicate key info about their options, and accurately report their consumer engagement to the Commerce Commission, according to the agency.
A One NZ spokesperson said the breaches never impacted the network or customers' ability to reach emergency services and that it took its responsibilities "seriously".
"We want to be clear this was not a failure of the 111 service or an issue preventing customers contacting 111 from our network in an emergency," the spokesperson said.
"Since identifying the breaches, we’ve worked closely and constructively with the Commerce Commission to put things right.
"No customers were harmed as a result of these breaches, and all registered vulnerable customers always had a way to contact 111 in an emergency. “
The 111 code protects consumers who, for health, safety or disability reasons, rely on landline connections for emergency calling.
When New Zealand's 111 emergency service was introduced, all calls were made from traditional copper landlines.
Fibre, unlike traditional copper lines, requires an electricity supply to work, meaning a consumer can't contact 111 on their landline during a power cut unless they have appropriate battery back-up.
If these consumers don't have other means of contacting 111 in a power cut - such as a mobile phone - their provider must supply a device enabling them to make emergency calls for at least eight continuous hours at no cost.
Most providers have supplied vulnerable consumers with a mobile handset or, outside mobile coverage areas, a battery backup for their landline service.
Gilbertson said the commission was encouraged that once One NZ became aware of the extent of the issues, it took action to correct the breaches and cooperated fully with the investigation.
"It's critical that telecommunications providers comply with the code, which ensures that vulnerable consumers can still call for help during a power cut," he said.
Commission raised 'serious concern' over breaches
The commission filed High Court proceedings against One NZ in April 2024, alleging multiple breaches of the code — some of which it alleged were ongoing at the time.
At the time, Gilbertson said the commission brought the action in light of One NZ's disregard for the code and the safety of vulnerable consumers.
“We’ve brought this action in light of One NZ’s disregard for the code and the safety of vulnerable consumers," he said last year.
"One NZ has a long history of breaching consumer protection laws – so we need to send a strong signal that we won’t tolerate any disregard for its mandatory code obligations."
He said, given widespread compliance across the rest of the industry, One NZ's failure to inform and protect its customers was a serious concern - particularly since it has the second largest number of landline connections in New Zealand.
"Just one breach could have devastating consequences - so it's encouraging to see most other providers respecting the importance of the code and doing the right thing by their customers."
In its statement today, One NZ encouraged customers who may be considered vulnerable under the code to get in touch through channels listed on its website.
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.
According to the commission's latest compliance report, there were 825 vulnerable consumers registered across all providers as of June 2024.
Providers supplied 235 mobile phones, 77 battery backups and other devices including emergency buttons, to vulnerable consumers during the 2023/24 period.
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