Competition Tribunal knocks back Telstra's wholesale line pricing

Stuart Corner
Tuesday, 11 May 2010 14:31

IT Policy - Regulation

The Australian Competition Tribunal (ACT) has once again rejected Telstra's bid for a $30 monthly price for the unbundled local loop service (ULLS) that underpins a large percentage of Australian broadband services and which is presently charged at about half this figure.

Optus said: "Telstra's push for a wholesale $30 ULL price has been reject multiple times by the ACCC and ACT. A $30 ULL price would result in a doubling of the wholesale access price for ISPs with obvious implications for consumers."

Maha Krishnapillai, Optus director of government and corporate affairs, said the ACT's decision supported "an earlier decision by ACCC to reject Telstra's outrageous claim to raise broadband prices."

He added: "It's disappointing that this decision had to be made at all and it only serves to demonstrate the duplicitous nature of Telstra. Whilst Telstra talks the talk about being more conciliatory its backroom campaign to raise broadband prices has continued unabated'¦

"Telstra needs to realise that its war on ULL wholesale prices has now been lost. For the benefit of the industry and Australia's broadband customers, it should call off its lawyers and confirm today that no further appeals to raise broadband prices will take place."

Back in May 2007 the ACT had rejected an earlier Telstra appeal against an ACCC decision on ULLS pricing. At the time, the ACCC claimed that the ACT had "comprehensively" rejected Telstra's proposed price for the ULLS.

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