Vodafone will continue its fight in the Court of Appeal over its $18 million share of Telecom’s 2003/2004 bill to maintain affordable phone services nationwide.

Under the Telecommunication Services Obligation, Telecom has to provide free local and emergency 111 calls, and charge customers in non-commerical rural areas the same as those in cities and provide dial-up internet access.

Each year the Commerce Commission calculates the cost of this to Telecom and then this is split between line users– the commission calculated the cost for the year ending June 2004 was $63.8 million, with Vodafone paying $18 million of it.

Vodafone took a case to the High Court in 2007 asking that the calculation for this period be reassessed but the court dismissed the request. Vodafone is now appealing this decision.

The hearing is expected to last two days.