UPDATE: ACCC wields new powers to set ISP charges

The Australian Competition and Consumer Commission has stepped in and used new powers to set standard Internet access charges for Internet Service Providers.

The Commission says it has used the new powers to issue details of standard charges that have been arrived at through arbitrations involving the ACCC and disputing parties who have been fighting Telstra and other carriers for cheaper line costs.

Charges set by the commission incorporate a call set-up or flag fall component of 0.03 cents per call and a per minute usage component of 0.13 cents.

ACCC chairman Professor Allan Fels said the charges were being published to give guidance for future negotiations.

He said they related specifically to the supply of public switched telephone network (PSTN) terminating access for data calls to ISPs and effectively placed a price ceiling in future negotiations "equal to the efficient costs incurred by Telstra."

However, Prof Fels, indicated prices could change in future and said the pricing structure was a transitionary approach that would require continuing analysis and consultation.

A Telstra spokesman said while the ACCC move set charges the corporation had been in negotiations with several industry parties for the past few months.

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Talkback 1 comments

    About time ! The ACCC should h ...Keith Styles -- 26/03/02

    About time ! The ACCC should have used its powers much, much sooner. They've let T(H)elstra dictate the terms & conditions of wholesale pricing when they (TH)elstra were never going to let anyone compete with them.

    All ISP's and the user community has suffered a huge disservice and payed thru the nose because of our WONDERFULL! phone companies greed.

    It will take Broadband Services a long time to recover from the backward step we all took in allowing T(H)elstra to monopolize the communications marketplace.

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