ACCC rejects Telstra pricing again

ACCC rejects Telstra pricing again

Summary: Australia's competition regulator has again issued a final decision to reject what it described as an "unreasonable" Telstra proposal to charge other telcos $30 per month to use its copper loop for certain broadband services in metro areas.

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Australia's competition regulator has again issued a final decision to reject what it described as an "unreasonable" Telstra proposal to charge other telcos $30 per month to use its copper loop for certain broadband services in metro areas.

Telstra has repeatedly submitted undertakings that sought to recover an amount significantly above efficient costs

ACCC chair Graeme Samuel

The so-called Unbundled Local Loop Service (ULLS) is used by other broadband providers such as Optus, iiNet, Internode and more to provide ADSL broadband and similar services, without the provider needing to buy an associated landline service.

"Following an extensive assessment of Telstra's undertaking, including Telstra's own cost model, the Australian Competition and Consumer Commission (ACCC) is not satisfied the $30 charge for metropolitan areas is reasonable," the regulator's chairman Graeme Samuel said in a statement.

"The ACCC believes that Telstra's proposed price is unlikely to promote competition in the broadband and telephony markets. It may also discourage investment in telecommunications infrastructure." The ACCC noted Telstra's $30 per month proposal was "significantly above" estimates derived from benchmarking against other countries.

The regulator pointed out Telstra had submitted four applications regarding the ULLS service since 2004, including the one rejected last night, one being withdrawn and three rejected, with the Australian Competition Tribunal backing the ACCC in two earlier appeals by Telstra.

"Telstra has repeatedly submitted undertakings that sought to recover an amount significantly above efficient costs," the regulator said in the statement. Telstra spokespeople did not immediately respond to a request for comment.

Topics: Telcos, Government, Government AU, Telstra

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39 comments
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  • Sucked in Telstra

    Good to see ACCC rejecting your stupid charges.
    anonymous
  • wait a sec...

    We don't know what Telstra's pricing structure is.
    anonymous
  • Re. Sucked in Telstra

    You have certainly added an intelligent contribution to this topic....not! Do you not think Telstra has not only a right, but an obligation to minimise it's operating costs?? Name another organisation that is forced by law to provide thier assets to competitors at below cost. I look forward to you childish response.
    anonymous
  • But the ACCC has an obligation to Australians!

    John, I think you'll find that $30 per month per copper cable is far, far above cost, I would be surprised if each cable cost $30 a year to Telstra ..also I think you'll find that ULL pretty much means a forced lease of the line in any language you speak.

    Although not eloquent, Anon.'s reply pretty much sums up the way Australia feels about Telstra.

    -see http://tr.im/k14N a ULL specific convo, and a few other people's point of view.
    anonymous
  • The ACCC has an obligation to ALL Australians

    John, I think you'll find that $30 per month per copper cable is far, far above cost, I would be surprised if each cable cost $30 a year to Telstra ..also I think you'll find that ULL pretty much means a forced lease of the line in any language you speak.

    Although not eloquent, Anon.'s reply pretty much sums up the way Australia feels about Telstra.

    -see http://tr.im/k14N a ULL specific convo, and a few other people's point of view.
    anonymous
  • Re. Sucked in Telstra

    John, I agree with you. That first poster with the stupid comment, should take a look at what the big banks continue to charge for doing SFA, with absolute silence from the ACCC. That ACCC crowd certainly seems to have it in for Telstra
    anonymous
  • re The ACCC has an obligation to ALL Australians

    Yes, give it to them for $ 30 per year, and throw in free access to all other Telstra built infrastructure. And while you are at it, give them an annual return trip to Europe free of charge. Then they might be all be satisfied.
    anonymous
  • @But the ACCC has an obligation to Australians!

    "Although not eloquent, Anon.'s reply pretty much sums up the way Australia feels about Telstra."

    What a silly statement that is. I'm Australian, and I do not think that way about Telstra. Nor do a lot of my friends and colleagues.
    anonymous
  • Competition is good

    Trust me... i know the cost structure...and it's unreasonable.
    anonymous
  • accc rejects Telstra pricing again.

    Well, if the other companies & the ACCC aren't happy, they can start building their own ULLS. Only take them a few years & millions of dollars. (or is that billions?)
    anonymous
  • Trust Telstra, sure can!

    Nobody in their right mind would trust this scummy company that has proven time & again how little they care about customers let alone the requirements to supply reasonable service throughout Australia, which they haven't done yet. For those inn support of Telstra, you are either paid by Telstra or hold shares so your points are without objective view point, so who cares what you think anyway?
    anonymous
  • go rex

    but your comments are gospel hey rex.

    if only you could see your comments through our eyes and see what a bitter little man you are. you'd then see that no one cares what you think either and we just laugh at you.
    anonymous
  • Dear Anonymouse

    Who in the hell are you to call me little man you pitious cretin? Get thou shares & away with thee hence thou coward.

    So I must be right because your response would tell me what I stated to be true cretin & coward. If I am wrong then show me where. I once worked for a great company called Telecom Australia but what I see now is a nasty vermin-like defection of what they used to be. Run by scum, removing those who made the company what they are & I'm not talking about myself because I have more than one career & I left before Telecom became Telstra, & of my own volition. I see what they've become & it's scummy at best. That you taunt me for having the view that those who support it are shareholders or paid by this company to support it has merit because I know many who currently work for the company & even some of the shareholders who believe the same as I.

    So Anonymouse, who are you & who cares about you?
    anonymous
  • k.

    actually no im reading this thinking "anonymouse" is even more of a tool than i first expected. to be honest
    anonymous
  • another or the same

    look another dopey ***t or the same dopey ***t. either way same result.
    anonymous
  • ACCC

    Actually, the ACCC is simply upholding the law. If you don't like the law, then you'd need to complain to a politician not the enforcers. The Banks are monitored by their own version of the ACCC called APRA. The difference is that the Banks play ball with APRA and understand the balance between pushing the bar and wasting everyone's time.
    anonymous
  • Dear Anonymouse

    So Rex Alfie Lee, who are you & who cares about you ?

    You sound more like that moronic, Jason to me.
    anonymous
  • go rex

    You are right on there. The "bitter little man", is a vey apt description, and no one gives a sh.t about the stupid litlle pr..k. Give it to him mate, as there are plenty of others that think the same way about him as you do.
    anonymous
  • Cry scum

    Cretinous, cowardice "bitter little" anonymouse shareholder.

    Cry over those worthless shares scum.
    anonymous
  • Cry scum

    You wish, bitter little man, with emphasis on the little.
    anonymous