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Telecommunications Telstra proposes big price changes for service providers
Telecommunications Telstra proposes big price changes for service providers | Telstra proposes big price changes for service providers |
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| by Stuart Corner | |
| Wednesday, 22 March 2006 | |
  
 Telstra has submitted a new undertaking to the ACCC proposing a 32 percent reduction in the wholesale price of local calls, to just over nine cents, and a more than doubling of the PSTN originating and terminating prices to 2.18 cents per minute, from one cent.Telstra's general manager of regulatory affairs, Dr Tony Warren, said the proposed changes were needed because of changes in the way telephone service were being used. "The fixed network is the backbone of all telecommunications, and is used for home phones, most broadband, and even as part of mobile communications. But people are using their mobile phones more, and less dial up Internet, so fewer calls are being made to cover our fixed network costs." He claimed the changes would "encourage more network use and better recover costs from other carriers using Telstra's network... Terminating access, for example, is the only means by which Telstra gets any contribution to fixed network costs from mobile operators when their customers call someone on Telstra's fixed network." Warren claimed that the 2.18 cents represented only a "fixed network cost recovery...in 06/07." Service providers offering telephone services generally simply resell Telstra's local call service and some resell all other types of calls. Others operate their own switches which accept calls from Telstra's fixed network (and other networks) for their customers and terminate calls from their customers on Telstra's network. This latter group will see the their interconnect costs for fixed network originated and terminated calls more than double. iTWire understands that the overall impact is expected to be a small revenue increase for Telstra. |
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