Telstra yesterday won an appeal in the Federal Court to have a wholesale services decision overturned which was made by the Australian Competition Tribunal last year.
Justices Jacobson, Lander and Foster ordered the decision of the
Australian Competition Tribunal — that Telstra not be exempt from
providing wholesale line rental services in certain areas — be set aside and that the matters
be remitted to the Tribunal for further consideration and determination.
"[It was] a common-sense decision that investment incentives and
the potential for infrastructure competition need to be taken into
account when examining the scope to roll back regulation," A Telstra spokesperson said of the verdict.
The Tribunal had
ruled that Telstra should not be exempted from supplying
wholesale line rental services in metro
exchange areas where four or more competitors were renting the
company's copper loop or where the exchange areas had 14,000
customers or more: an exemption the Australian Consumer and
Competition Commission had granted the telco in
August last year.
The Tribunal had not felt that the ACCC's reasoning was sound,
saying that the entry into the market of one or more than one firm
did not establish that the incumbent was subject to the constraints