Aust. telco competition proposal labelled a "farce"

The Australian Competition and Consumer Commision (ACCC) could miss out on a perfect bargaining opportunity with Telstra if a plan to deregulate wholesale local call pricing in Central Business Districts gets the go ahead.

The ACCC is planning to remove its own regulatory control from Telstra in regards to wholesale local call pricing in Central Business Districts throughout major cities in Australia, claiming there is enough robust competition in these areas.

Telecommunications expert Paul Budde described the ACCC's draft decision as -disappointing", saying that the regulatory body is in a good position to leverage Telstra's proposal against giving up its local call dominance throughout the rest of Australia.

-The ACCC could use it as a bargaining [tool] to get other things out of Telstra that it is stalling on, it shouldn't give it away like that," Budde said.

Furthermore, Budde said competition in CBD areas is extremely limited to a few hundred buildings, -it is totally overstated to say there is competition".

In an earlier report, the ACCC told ZDNet Australia there is a whole raft of carriers largely serving big business, which have installed their own infrastructure in the cities.

Primus telecommunications spokesperson George Hazim described the proposal as a -farce", saying that if it goes through, it will fly in the face of competition.

-It appears, whatever Telstra wants, Telstra gets and this is just another example of it getting its own way," he said.

Optus also expressed concern over deregulation of wholesale local call pricing in CBD areas, saying that its implementation would be -premature".

AAPT told ZDNet Australia that it hasn't had enough time to evaluate the draft decision, however, a spokesperson said the carrier is taking into consideration that if implemented, it would take one year for the proposal to take effect, and that the ACCC would continue to monitor Telstra's behaviour in these markets for anti-competitive behaviour.

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Talkback 6 comments

    More regulation is needed as T ...Anonymous -- 14/09/01

    More regulation is needed as Telstra has shown over and over that they will abuse the system whenever Telstra has the slightest opportunity to do so.
    Telstra is not known for ethical business practices.

    More regulation is needed as T ...Anonymous -- 14/09/01

    More regulation is needed as Telstra has shown over and over that they will abuse the system whenever Telstra has the slightest opportunity to do so.
    Telstra is not known for ethical business practices.

    More regulation is needed as T ...Anonymous -- 14/09/01

    More regulation is needed as Telstra has shown over and over that they will abuse the system whenever Telstra has the slightest opportunity to do so.
    Telstra is not known for ethical business practices.

    More regulation is needed as T ...Anonymous -- 14/09/01

    More regulation is needed as Telstra has shown over and over that they will abuse the system whenever Telstra has the slightest opportunity to do so.
    Telstra is not known for ethical business practices.

    Oops something is wrong with t ...Anonymous -- 14/09/01

    Oops something is wrong with the submit button.

    Thers is no competition. T(H)e ...Keith Styles -- 20/11/01

    Thers is no competition. T(H)elstra is a preditory monopoly. With over 300 legal staff, how can anyone get a fair hearing or win any battles? If you use another Telco & a fault occurs, you will wait till the cows come home for service & attention from the T(H)elstra exchange staff. I have been down that path, having used IPrimus,& it frustrated the hell out of me, not to be able to get satisfaction from anyone. I was forced to go back to T(H)elstra just to get a reliable dialup service.

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