Closely 12 months from the initial of the XT mobile network outages, Telecom's mobile business is yet presently battling to give the type of growth the firm wished for.

Mobile profits has started to increase but they have a very long path to cover to accomplish their dreams as expressed by chief executive Paul Reynolds yesterday as the firm carried their first-quarter income.

Stating that patient safety was at risk, a district health board has ditched Telecom's problem-plagued XT mobile network.

Since December, that network has failed four times after operating less than a year.

Hospital is now reconsidering its contract worth $1 million with Telecom and about 49 staff members at Hutt Valley DHB have XT phones.

In view of the frequent failures of the XT network, the Shareholder Activist, Bruce Sheppard has expressed a strong disagreement with the $3 million bonus to be bagged by Paul Reynolds, Telecom's CEO.
He has warned to move a motion at the Telecom annual general meeting, in October, to sack the entire board if the bonus amount remains uncut.

Telecom will free some disgruntled XT customers from their fixed contracts, following a series of failures as twenty of Telecom's cell sites went down in Upper Hutt, the Wairarapa and New Plymouth for approximately eleven hours.

Following a second crash in just over a month, Telecom has announced that it has restored its XT mobile network. However, some of the South Island customers are still reporting difficulties with many in Southland, Timaru and Dunedin angry over not being able to access the network at all.