$50 Xtra refunds?

Bruce Simpson suggests that Telecom are obliged to refund $50, not $3.25 for their recent Xtra outage. He quotes from their standard terms and conditions:

“If you are still without a Telecom service because of a fault in any of these things more than 24 hours after you tell us about the fault, or if we miss an arranged visit, call us on 120. You can choose either a credit to your Telecom account of one month’s worth of your Telecom residential line rental or $50 worth of PhoneCards”

Does Xtra count as a Telecom service?