Telstra fined $17m for denying network access

The Australian Federal Court has fined Telstra A$18.55 million ($16.6m) for denying competitors access to its copper network.

 

The Australian Consumer and Competition Commission (ACCC) took the carrier to court because it refused grant other broadband ISPs access to its exchanges in four cities, claiming those exchanges were full when they were not.

 

“Telstra admitted to breaching the law by refusing access to other telecommunications providers… for the connection of their broadband equipment,” said the ACCC. 

 

“Telstra maintained to the companies seeking access that the main distribution frames in these exchanges were `capped’, where in fact, there was capacity or it could have been made available.”

 

In handing down his decision, Justice Middleton that Telstra had shown “no true remorse” for its conduct.

 

Telstra conceded it had breached the Telecommunications Act and the Trade Practices Act between January 2006 and February 2008.

 

The ACCC was hoping for a fine of A$40 million, while Telstra argued that an appropriate penalty was in the order of A$3-A$5 million.