Telstra loses bid to double wholesale access price

Nicole McCormick | May 12, 2010

telecomasia.net

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After five years of legal battles, Telstra has lost its legal battle to almost double the rates it charges wholesale customers to access its copper network in city areas.

The Australian Competition Tribunal yesterday rejected Telstra’s latest appeal to raise wholesale fixed-line access rates in metropolitan areas from A$17 ($15.23) per month to A$30.

Telstra has agreed to accept the ACT’s ruling but would not comment on whether it would pursue other legal options, according to the Australian.

But further legal recourse seems unlikely, given the Australian Consumer and Competition Commission (ACCC) has already published indicative wholesale access prices that are pretty close to what Telstra is advocating.

"The ACCC has started industry consultation on how to best determine regulated access pricing,” a Telstra spokesperson told the Australian.

“We support this approach and are focused on achieving certainty for Telstra and industry, as quickly as possible, through a resolution of the appropriate costing of our network.”

Optus government and corporate affairs director Maha Krishnapillai said that Telstra had now lost its war on wholesale prices.

“For the benefit of the industry and Australia's broadband customers, it should call off its lawyers and confirm today that no further appeals to raise broadband prices will take place,” he said.

Source:

telecomasia.net

Nicole McCormick

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