iiNet claws back AU$8 million from Telstra

The competition regulator has ruled that Telstra overcharged iiNet to the tune of AU$8 million in facilities access charges.

The Australian Competition and Consumer Commission (ACCC) has resolved an access dispute between iiNet and Telstra, awarding iiNet AU$8 million in refunds for overcharging for facilities access.

Back in 2010, iiNet sought advice from telecommunications experts about the price that Telstra charges for facilities access for companies that wholesale on Telstra's fixed-line network. Their research determined that the charge that Telstra imposes for internet service providers (ISPs) to house the internal interconnect cable (IIC) — the cable that goes from the ISP's DSLAM to Telstra's main distribution frame (MDF) — was excessive, because the cost of housing the cable was recovered through other charges, such as rack and cabling.

iiNet said that it pays millions per year to Telstra for the IIC.

The ACCC made a final determination yesterday, ruling that Telstra must give AU$8 million in refunds to iiNet for excess IIC charges.

Telstra has the option to appeal the decision to the Federal Court by December 20, 2012; otherwise, it must pay the refund by January 3, 2013.

ZDNet has sought comment from Telstra on whether it intends to appeal the decision.


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