Telstra to tackle ACCC in court over broadband tariffs

24 Jan 2007

Telstra Corp has filed a High Court challenge to a ruling by the Australian Competition and Consumer Commission (ACCC), claiming that its constitutional right to fair compensation has been violated in the ‘arbitrary’ setting of broadband rates. The legal action comes a month after the ACCC reduced wholesale broadband prices to a level that the company claims is far beneath its actual cost. Telstra public policy director Phil Burgess said in a statement that Telstra has a ‘legal and ethical duty’ to challenge the ACCC ruling, ‘The Australian Constitution guarantees every citizen the right to fair compensation when their property is compulsorily acquired, as is happening in this case,’ Burgess said. He added that last month’s decision by the ACCC allows Telstra’s competitors to buy broadband infrastructure for just AUD3.20 (USD2.52) per month, and then re-sell it for around ten times that amount. Telstra has written to its wholesale customers informing them that existing pricing arrangements will remain in place while the case proceeds.

Australia, Telstra (incl. Belong)