The first quarter of this year has seen a 400% increase in phone fraud, according to the Telecommunications Industry Group (TIG), an association that numbers Telecom and Vodafone among its members.

Ten companies a week are having their PABX systems attacked by international hackers, who then make out-bound calls to premium pay numbers they've set up in North Africa or Europe.

The numbers often cost $US15 a minute, and the attacks often happen in the evening or weekends - so a business can be ripped off to the tune of thousands before it realises anything’s amiss.

The government should use general taxation to raise money for its rural broadband initiative instead of taxing Telecommunications Industry Group (TIG) members, TIG CEO Rob Spray said.

Formered earlier this year, TIG's members include Telecom, Vodafone and Kordia, but not TelstraClear or 2degrees.

Ex-Nortel New Zealand MD Rob Spray will become the inaugural CEO of the newly formed Telecommunications Industry Group on 1 July.

Formed on 21 May, the Telecommunications Industry Group is a lobby formed with the goal of “creating raised awareness by the New Zealand business community and public of the contribution made by telecommunications to the New Zealand economy.”

Mr Spray said he was “very excited to be given this opportunity”, as he has been actively involved in the evolution of the Telecommunications industry in New Zealand for some time.

Telecom, Vodafone and a raft of broadband players have clubbed together to form a new body called the Telecommunications Industry Group (TIG), giving telcos an independent voice outside the government-mandated Telecommunciations Carriers Forum.