Telstra and ACCC fall out (again)

4 Apr 2006

The Australian Competition and Consumer Commission (ACCC) is again on a collision course with fixed line incumbent Telstra, this time over the operator’s proposed charges for its line sharing service (LSS), according to The Age. LSS provides access to part of the basic copper wire of Telstra’s network, allowing competing carriers to provide their own broadband services to end-users while Telstra continues to provide voice telephony. The incumbent has proposed separate connection and disconnection charges of AUD90 (USD64) each for LSS, which the ACCC has rejected as too high. ‘The ACCC is of the view that Telstra’s proposed connection and disconnection charges are not reasonable,’ ACCC chairman Graeme Samuel told The Age. He went on to say the fees were well above what was appropriate for the service and that the separate disconnection fee should not be levied at all in some cases. Unsurprisingly – in a state of affairs that mirrors the current stand-off between the pair over wholesale line rental and unbundled local loop charges – Telstra is not planning to budge on the issue. ‘If the ACCC can find some way of doing it for less, we’d like to hear about it,’ Telstra spokesman Rod Bruem told the paper.

Australia, Telstra (incl. Belong)