Wellington, Feb 23 NZPA - Telecom's IT chief has resigned following the latest XT mobile phone network failure.

Frank Mount's is the second head to roll in the wake of a series of XT outages, with Alcatel-Lucent, the partner of Telecom which built the XT network, yesterday announcing that its New Zealand chief executive, Steve Lowe, had resigned.

The network has been plagued with problems since being introduced late last year, with an outage affecting customers south of Taupo yesterday the fourth time since Christmas customers had been unable to effectively use their phones.

Mr Mount was appointed in May 2008, when Telecom chief executive Paul Reynolds said he would play a key role in driving the company's transformation for long-term growth.

Mr Mount would be responsible for delivering a "new generation of world-class services" to customers in new and innovative ways, Dr Reynolds said at the time.

This morning Dr Reynolds accepted Mr Mount's resignation, which would be effective immediately.

"In the interests of our customers, our team and New Zealand, I have regretfully accepted Frank's resignation," Dr Reynolds said.

"I am pleased to announce that CIO (chief information officer) David Havercroft will assume the responsibility for all network and IT operations from today and CFO (chief financial officer) Russ Houlden will carry interim responsibility for our shared services operations and technology strategy.

"I want to acknowledge with personal gratitude Frank Mount's enormous contribution to Telecom over the past 18 months. He has worked tirelessly and selflessly for our customers and for Telecom people.

"The successful delivery of Telecom's crown undertakings schedule on operational separation represents one of the most significant operational and IT programmes in the company's history and is re-shaping the industry. I wish Frank well for the future."

Meanwhile, Transport Minister Steven Joyce has voiced concerns over reports that people were unable to get through to emergency services on 111 because of the latest outage.

The Dominion-Post website reported calls to 111 to help a student who was attacked at a Christchurch mall failed to get through.

Witnesses said an Asian student was left beaten and bloodied after the assault by four skinhead youths at a bus stop outside the Palms Mall in Shirley about 6.30pm yesterday.

Mr Joyce said he had not been told about the incident but he had sought reassurance about the 111 service yesterday when he spoke to Dr Reynolds yesterday.

"I am concerned and that is why I asked last night without any knowledge of that situation if Telecom could provide assurances that people could call 111 from their XT phones... Officials are following that up today and will seek further assurances."

He said Telecom should be able to guarantee the 111 service worked "as much as technically possible, yes".

Labour's communications and IT spokeswoman Clare Curran said Mr Joyce needed to get answers from Telecom about why customers were being let down and urge the company to compensate them.

Ms Curran said the unreliability of the XT network was now an infrastructure issue which was costing New Zealanders time, businesses money, and Telecom a big chunk of its reputation.

"New Zealand cannot afford to have the main network of the major telecommunications company under question. It's not good enough and it would be good if the minister would relay that to Telecom on behalf of customers."

Mr Joyce said Telecom was a private company.

"It is for them to look after their customers and deliver their service. The Government's job in this situation is firstly to make sure where we can that the 111 system is operating effectively and I sought assurances from Telecom last night and officials are following up with them today on that issue."

Mr Joyce said the Government was concerned but: "I can't add any more pressure on to Telecom than their customers will already being placing on them. They will be very very well aware of that".

Mr Joyce said the problems were embarrassing for the company and were bad timing in terms of contract possibilities.

"I think its terribly embarrassing for Telecom and if it continued on for any length of time it would be concerning from an economic point of view."

Telecom compensated customers following an outage late last month which lasted for days.

Dr Reynolds is this afternoon due to front up to media to talk about the issues.