ISP cries foul over Telstra plans as ACCC investigates

ISP cries foul over Telstra plans as ACCC investigates

Summary: ISPInternetproviderTelstraDSLOptuscablepricingbroadband

TOPICS: Broadband
Telstra's cut-price broadband Internet offers have provoked an investigation by the Australian Competition and Consumer Commission, with competing Internet service providers complaining that their viability is in jeopardy.

Netspace, a national broadband DSL Internet service provider to the consumer and small business markets, said it was "absolutely shocked" by the entry level deals offered by Telstra, as the cost of the new plans are below the wholesale price charged by the carrier to competing providers.

"If we wanted to compete with Telstra's new deals, we'd be losing at least AU$5 per month per subscriber, and in regional areas it'd be a AU$10-AU$15 loss for each customer per month" said Stuart Marburg, managing director of Netspace.

Telstra's new broadband deals -- launched the day before bitter rival Optus started offering its residential DSL services -- kick off from just AU$29.95 per month.

The ACCC told ZDNet Australia   its investigation had already commenced and that it would seek to ensure that there was no predatory pricing undertaken by Telstra. An ACCC spokesperson says the market inquiry was provoked by the fact that "they're [Telstra] selling to retail cheaper than to wholesalers, making it near impossible for others to profit".

Marburg hopes the ACCC will approach the matter "with a sense of urgency", saying he wants Telstra to be forced to withdraw the product from sale until they offer wholesale prices that allow competition in service.

"Consumers need choice, and competition drives innovation in the broadband market. I just hope Telstra Wholesale will rethink its wholesale pricing so that the industry can innovate and grow the broadband market together," said Marburg.

Topic: Broadband

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  • Telsta once again show's their total lack of thought for their wholesale partners. This move only further proves to ISP'S what they already know from dealing with Telstra's constant backflips, lies and uncompetetive practices.
    Considering Telstra has the Australian government to thank for it's postition in the marketplace they should let the smaller groups who do Broadband already at better prices and with better support keep providing the service and only be a supplier. Theres enough money for them this way.. But they are just greedy
  • TW does it AGAIN!!!!

    Why should anyone expect the ACCC to stop Telstra's preditory behavour. It's not the first time Telstra Wholesale has pulled this nonsense on their ISP customers. The ACCC has done nothing to deter Telstra from doing it again and again. All they ever do is investigate and investigate and then warn Telstra and slap them on the wrist for being naughty.

    This problem will not go away until the ACCC uses their powers and the regulations they have, to put a stop once and for all to this appauling behavour.

    Meanwhile the comsumer suffers and does the Minister do anything to put a stop to this behavour?

    Not likely! It would spoil the governments Share (fire) sale of the their remaining holdings.