Competition regulator the ACCC is set to probe what's stopping Telstra's rivals rolling out broadband services -- and whether there are 'real' blocks, like space constraints, that are preventing them or whether there are 'artificial' restraints on accessing the unbundled local loop.
ACCC chairman Graeme Samuel
Credit: ACCC
Speaking at the ATUG annual conference in Sydney, ACCC chairman Graeme Samuel said that regulator is focused "on is ensuring there are minimal impediments to firms being able to make investments in broadband infrastructure" and that the ACCC "needs to get a good handle on the issues".
One such deterrent to rural ISPs is the cost of backhaul, according to Samuel, with the issue set to become even more pressing as networks are upgraded to higher speeds.
"Given backhaul is already regulated, the ACCC is currently developing a domestic transmission cost model, on which industry comment was sought last year, and which we hope to release shortly," he said.
Samuel added that the question of space is also one the ACCC is aware of as a genuine obstruction to broadband infrastructure upgrades, such as in areas where there are physical impediments preventing an ISP gaining access to an exchange to install their own DSLAMs and gain access to the unbundled local loop.
"If so, perhaps there is little the regulator can do," Samuel noted.
However, the head of the competition watchdog noted that where obstacles are created by ISPs, the regulator will not by shy of taking action.
"Alternatively, there may be what I call 'artificial' constraints -- where there are claimed impediments to competitors accessing the ULLS and LSS, but this isn't actually the case. In these cases, there may be regulatory remedies that could be pursued," he said.
"The ACCC is well aware of industry concerns and is currently working with parties to try and obtain the relevant facts to determine if impediments are real or artificial. If the ACCC has the appropriate evidence to establish that there may be competition issues, the ACCC will consider what action to take and what are the best tools to deal with these impediments."
Samuel also used his address to counter claims by Telstra that the ACCC sets local loop pricing below cost.
"On the subject of blame, I should point out that the ACCC also rejects the tired and erroneous claims by Telstra that the ACCC somehow sets prices "below cost". After its latest loss in the courts of appeal, this time to the highest court in the land, Telstra managed to find -- somewhere in the High Court's 18 page, 7-0 judgement against it -- evidence that the ACCC was setting prices 'below cost'.
"The Trade Practices Act basically prohibits this -- in setting prices the ACCC must always have regard to the direct costs of providing access, and the legitimate business interests of the access provider," Samuel noted.
Telstra could not be immediately reached for comment.
Telstra has been accusing the ACCC of forcing it to sell ULL at below cost. Last year, Telstra's head of public policy and communications, Phil Burgess, said the regulator had worked out its ULL costings after looking at UK watchdog Ofcom's local loop charges and converting the amount to Australian dollars. The claim was rebutted by the ACCC, which said it had reached the figure by looking at market conditions.
Most of these Telco's make so much money you can expose them in the nuddy and they still won't change their ways.
A good whack with a cricket bat is really what they need to get the ball rolling (no pun intended).