Suing Alcatel dangerous for Telecom

The patriotic Kiwi in me would like to see our much maligned telco sue its French supplier Alcatel-Lucent as discussed in the media, but the evidence is that any such court case would be fraught with danger.

Yes, Alcatel-Lucent bosses have taken the rap. Yes, questions have been raised about the suitability of Alcatel-Lucent.

However, sadly, Telecom made the choices all the way.

Telecom CEO Paul Reynolds cited existing relationships with Alcatel. Indeed, perhaps the relationship was too cosy, with a former Alcatel boss now on the Telecom board!

Telecom also stands accused of launching XT before it was ready and Sydney-based Paul Budde also raises under-investment.

"In the end, it's Telecom [to blame] because they build the network, they sign off, they put the money on the table. The buck stops with them. Full stop," Budde argued.

Of course, Reynolds has his denials, rejecting any skimping on XT or a premature launch, adding he has been "let down" by his supplier.

Certainly, with hindsight the inexperienced Alcatel-Lucent was obviously the wrong choice for Telecom, delivering the telco a most expensive pup for the XT network.

But it was a choice Telecom made, a decision it freely made under the most questionable circumstances.

Telecom has yet to publicly raise such a lawsuit. But if it were to bring such a claim, its case would have to overcome so many hurdles, as raised above, that such a battle could be a humiliating failure, with much embarrassing airing of dirty linen.

The best hope it has, is that Alcatel-Lucent may have hidden skeletons of its own and might choose to settle out of court.