Telecom NZ may ditch Yahoo email after hack

Yahoo may end up losing its email service outsourcing deal with Telecom New Zealand after a recent security imbroglio.

Spammers allegedly exploited a security vulnerability in Yahoo's internal network to gain access to user contact details for customers of Telecom's retail ISP Xtra.

Hundreds of customers are still being bombarded with spam, some of which come from accounts used by their dead relatives.

The chief executive of Telecom Retail, Chris Quin, today issued a statement saying the telco shared "the frustration that our customers have been experiencing over recent months."

"We fully appreciate that repeatedly saying ‘sorry’ doesn’t cut it anymore," Quin said.

"We are committed to taking a close, hard look at the best way to meet our customers’ email needs."

A spokesperson for the Kiwi telco told iTnews that it would "undertake a comprehensive review" and this could mean moving Telecom's email service for its retail ISP customers back in house, and away from Yahoo.