Telstra to clash with ACCC over wholesale pricing

23 Jan 2006

Australia’s incumbent telco Telstra is going head-to-head with the Australian Competition and Consumer Commission (ACCC) once again, this time over the pricing of line sharing services (LSS). Last month the telco proposed an LSS wholesale starting price of AUD9 a month, but the regulator rejected the figure saying it should be somewhere between AUD6 and AUD9. Telstra has now launched an appeal against the ACCC’s decision. The telco and the regulator are already engaged in a long running dispute regarding wholesale bitstream and unbundled local loop pricing.

Meanwhile, Telstra is facing an AUD300 million (USD226 million) lawsuit from a group of its shareholders which claim the company breached disclosure rules by briefing the government and the press on its financial standing before it alerted the Australian Stock Exchange (ASE). The shareholders allege that Telstra gave a private briefing to the government on 11 August 2005, forecasting a major drop in earnings and AUD3 billion under investment. However, the ASE was not informed until 7 September, by which time an unknown number of shareholders had traded more than a billion Telstra shares.

Australia, Telstra (incl. Belong)