ACCC moves on Telstra service bundling

By Iain Ferguson
21 March 2003 04:10 PM
Tags: bundling, fels, services, telstra, iain, ferguson, accc, bundle
The Australian Competition and Consumer Commission (ACCC) has taken a significant step towards blocking Telstra's controversial move into service "bundling" amid claims from the carrier it is being unfairly singled out over the practice.

The commission today directed Telstra to provide quarterly reports on bundling plans. In an interview with ZDNet Australia , ACCC general manager for telecommunications Michael Cosgrave said: "We think there is an issue there that needs to be properly investigated."

In a statement, the ACCC said competitors' complaints have increased with Telstra now wrapping pay-television, local and long-distance telephony, mobile and Internet services into one discounted package.

The move comes just days after Senator Richard Alston, the Minister for Communications and Information Technology, announced a draft ruling requiring the ACCC to issue record-keeping rules to Telstra to prepare more comprehensive reports relating to its wholesale and retail operations.

However, Telstra hit back at the ACCC, with a spokesperson for the carrier's regulatory arm saying "we're a little surprised that the ACCC's clearly targeting Telstra when our major competitor has been bundling telecommunications products for a lot longer than we have. "Is the ACCC acting in the consumer's interest or merely having another swipe at Telstra?".

Cosgrave said while the commission had listened to the complaints from the industry, the inquiry was partly self-initiated. He indicated that while the initial directive was made against Telstra, other carriers which bundled services, such as SingTel Optus, would also be asked to supply information.

The ACCC said it had issued a record-keeping rule to Telstra requiring it to provide details such as discounts provided on service bundles, the number of customers receiving bundled services and whether customers currently getting packaged services previously received individual services from Telstra or another provider.

According to the statement, ACCC chairman Professor Allan Fels said: "The data will assist us with our continuing assessment of the possible anti-competitive effects of bundling, particularly relating to the choice consumers have for home services."

"The ACCC recognises that bundling of telecommunication services can lead to increased efficiencies and provide many consumer benefits, such as lower prices and single bills. However there is also the risk that bundling may have anti-competitive effects.

"These competition concerns largely turn on the effect that Telstra's bundling strategy may be having in limiting opportunities to compete. The data being sought will assist the ACCC to understand any such impact," Fels said.

He added that there had been "growing" industry concerns about the implications of bundling for telecommunications services, "particularly for new and developing services, such as broadband and 3G mobile".

Steven Wright, Hutchison Telecommunications' director of stakeholder relations, told ZDNet Australia  bundling by Telstra had the potential to "certainly significantly hinder" development of its new national 3G service, the launch of which is expected by the end of the current quarter.

Wright confirmed Hutchison had held extensive discussions with the ACCC on the issue, not just in its own right, but as a member of a combined non-Telstra carriers group.

Advertisement

Talkback 4 comments

    Who give's a flying rats trap ...Anonymous -- 21/03/03

    Who give's a flying rats trap about Telstra's "Bundles" when Telstra is making a mint off keeping Australia in the Slow lane by keeping download limits in place while the rest of the world is leaving the "Clever Country" in the dust.
    Oh yes they may whine about how remote Aus is from the rest of the world but that is just a veil of deceit and lies.
    Why remove the caps when it is making them so much money?
    The reason why they are making "losses" is because Australians are sick of their money grubbing antics and want a DECENT SERVICE...service? What's that!
    Telstra YOU SUCK!!!

    Sick of Anti-Competative Money Grubbing Telephone Duopolies.

    tarrith

    Perhaps if the big 'T' offered ...Anonymous -- 24/03/03

    Perhaps if the big 'T' offered reasonable services and resold it at a decent rate to other providers they wouldn't always be getting bad press.
    And what the hell is with these damn usage caps and limits. Being a monopoly means that they control the actual network, limits is something it doesn't have to worry about, it just sells them to us for a huge profit.

    T(H)elstra, your carping sucks ...K.Styles (A very,very disgruntled user) -- 25/03/03

    T(H)elstra, your carping sucks. You regulate the network and customer billing options for your own benefit as the monopoly provider. Nothing you do or say will change that situation until the ACCC and Senator Allnuts oops Alston make an effort to force a competitve environment. Yeahh, and Pigs might fly!!!

    Single billing? Service bundli ...Anonymous -- 25/03/03

    Single billing? Service bundling?

    I'd settle for being able to set up a BPay entry for my phone account on my online banking that I could use every time I get a phone bill.

    Every bill I get a different customer reference number!

Add your opinion

Latest Videos

Sponsored content

Power Centre - Content from our premier sponsors

Blogs

  • Renai LeMay How reliable is IP telephony?
    Have you ever heard a weird kind of hissing, crackling or popping noise when calling someone on an IP telephony line? How rare is the phenomenon these days?
  • Array Forget the NBN, 100Mbps is already here
    Telstra and TransACT will shortly begin offering 100Mbps broadband to many customers. By moving early, the companies have not only raised the bar for Australia's broadband services, but thrown down a challenge to a government that now faces increased pressure to deliver the NBN as promised.
  • Array IT: Govt's cost-cutting bitch
    The government needs to stop looking at IT as a necessary evil or the place to remove costs when the Treasurer comes calling.
  • More blogs »

Tags

Back to top

Featured