Telstra slugged with competition notice

The Australian Competition and Consumer Commission has issued a notice to Telstra claiming the carrier acted anti-competitively in its implemention of a wholesale line rental price increase.The ACCC said in a statement issued tonight it had issued Telstra with a Part A competition notice -- which allows third parties to take legal action to recover loss or damages resulting from an anti-competitive activity -- over the carrier's decision to raise the price of its Home Access product in December.

The Australian Competition and Consumer Commission has issued a notice to Telstra claiming the carrier acted anti-competitively in its implemention of a wholesale line rental price increase.

The ACCC said in a statement issued tonight it had issued Telstra with a Part A competition notice -- which allows third parties to take legal action to recover loss or damages resulting from an anti-competitive activity -- over the carrier's decision to raise the price of its Home Access product in December.

The product is an input used by the carrier to provide line rental and local call services to consumers.

"The price increase resulted in Telstra's retail prices for the line rental component for the majority of its fixed voice products being below Telstra's wholesale price for line rental," the ACCC said.

"The ACCC considers the effect or likely effect of Telstra's pricing conduct includes:

  • hindering Telstra's retail competitors from competing for certain types of customers;

  • reducing the incentives of Telstra's retail competitors to compete for new or existing customers;

  • reducing the ability of Telstra's retail competitors to expand product offerings and invest in infrastructure".

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