ACCC rejects Telstra’s copper access fee proposal

28 Apr 2009

The Australian Competition and Consumer Commission (ACCC) has rejected proposals by incumbent Telstra to charge a monthly fee of AUD30 (USD21.46) for use of its copper wire network. ACCC chairman Graeme Samuel noted, ‘Following an extensive assessment of Telstra’s undertaking, including Telstra’s own cost model, the ACCC is not satisfied the AUD30 charge for metropolitan areas is reasonable’, adding that ‘the ACCC believes that Telstra’s proposed price is unlikely to promote competition in the broadband and telephony markets. It may also discourage investment in telecommunications infrastructure.’ This is third time that the ACCC has rejected charge proposals from Telstra since 2004.