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Telecommunications Competition Tribunal rejects Telstra's appeal against ACCC
Telecommunications Competition Tribunal rejects Telstra's appeal against ACCC | Competition Tribunal rejects Telstra's appeal against ACCC |
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| by Stuart Corner | |
| Thursday, 17 May 2007 | |
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"This decision is fundamental to Telstra's current broadband FTTN proposal," Samuel, said. "An FTTN network brings fibre closer to the customer, but continues to use part of the legacy copper network." He noted that the substantive area of disagreement on costs under Telstra's FTTN proposal had been over access to the remaining copper, not fibre, saying: "This makes the need for Telstra to release its FTTN costing for public examination even more pressing." According to the ACCC, the ACT "comprehensively" rejected Telstra's proposed price for the ULL. "The Tribunal rejected Telstra's appeal...on seven major grounds and affirmed the ACCC's decision of 25 August 2006 to reject Telstra's price undertakings," the ACCC said in a statement. Telstra had proposed a geographically averaged monthly price of $30 per line. When it provisionally rejected Telstra's proposed pricing last June, the ACCC said it believed that Telstra's proposed average price was unlikely to promote competition on its merits and likely to heavily distort the use of and investment in telecommunications infrastructure. The ACCC also noted that "Telstra's prices ... adopt a proposed method of cost recovery for ULLS specific costs which has now been rejected by the Australian Competition Tribunal following Telstra's appeal on its undertaking for the Line Sharing Service." |
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