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.
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one rejected last night, one being withdrawn and three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.
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