Telstra ordered to compensate broadband rivals

23 Feb 2005

Australia’s dominant operator Telstra has avoided a massive fine for flouting broadband pricing regulations, but has been ordered to bring its charges into line by the end of the year. The Australian Competition and Consumer Commission (ACCC) has been investigating Telstra’s broadband internet prices for the past year. The telco has now been ordered to give a rebate of AUD6.5 million to its wholesale customers, well below the maximum fine of AUD300 million which it could have faced. The ACCC reacted to Telstra’s decision in February last year to slash the prices it charges retail DSL customers, while wholesale charges remained at a higher level, giving rivals no chance of providing a competitively priced service. Telstra has until 1 January 2006 to reduce its wholesale DSL tariffs.

Australia, Telstra (incl. Belong)