Clear Communications was a telecommunications company based in New Zealand. Until merging into Telstra's operations in 2001, it was the biggest rival to Telecom New Zealand. Background Prior to 1987, New Zealand's telecommunications sector was dominated by the New Zealand Post Office, who also provided telephony and telegraph services. In 1987 the Post Office was split into three new businesses - Telecom Corporation of New Zealand, New Zealand Post and PostBank. When Telecom was created in 1987 the firm of Touche Ross was briefed to examine the feasibility of competition in New Zealand's telecommunications industry. Intensive research showed New Zealanders were unimpressed by the prices they were being charged and were not happy with a generally unresponsive service. By June 1988 Richard Prebble, then Minister of State Owned Enterprises, announced to the country the intention to deregulate the telecommunications industry and open it to competition. The mandate to the new state-owned enterprise, Telecom, was to operate in a profitable manner in a fair and competitive environment. The free and open competition became law with the Telecommunications Amendment Act in December 1988. Full deregulation for the telecommunications industry came into effect on 1 April 1989. "Consumers will benefit substantially from opening up the telecommunications market to competition", Prebble told New Zealanders in June 1988. He noted that Telecom's competitors would be heavily dependent on it for facilities and services, giving Telecom scope to act anti-competitively if so wished. He added, however, that he had received an assurance in writing from the head of Telecom, Dr Peter Troughton, that Telecom would facilitate the emergence of a competitive market in telecommunications, and that it would provide interconnection to its facilities on fair terms and conditions. Telecom's activities and the interconnection agreements, fundamental to the successful entry of competitors, were to be subject to the scrutiny of the Commerce Act 1986. The Department of Trade and Industry was also to act as a watchdog to keep telecommunications on a competitive track. Establishment In 1990, Clear Communications made New Zealand history by establishing itself as the country's first telecommunications competitor. Initial interest: 1988 There was a keen interest among state-owned enterprises (SOEs) such as New Zealand Railways Corporation, Electricorp (later ECNZ) and the Broadcast Communications (a subsidiary of Television New Zealand) who saw strong investment opportunities for their microwave, satellite or fibre optic cable capacity. The missing link was the telecommunications switching expertise. Bell Canada