Australian telcos slam ACCC competition decision

A coalition of smaller carriers calling themselves the Competitive Carriers' Coalition (CCC) have rejected yesterday's Australian Competition and Consumer Commission (ACCC) decision, saying it will serve to strengthen Telstra's monopoly over the telecommunications market.

Formed 12 months ago, into an attempt to collectively raise the profile of smaller carriers Hutchison Telecoms, Primus Telecom, Macquarie Corporate and PowerTel, the CCC claims the ACCC decision could "crush and wipe out" competition as it allows Telstra and Optus to bundle Pay TV with telecommunications services.

A spokesperson for Optus said the ability to share content with other pay TV networks would remove an AU$600 million program procurement millstone from around the company's neck, thus enabling the company to increase its focus on the provision of other technology, such as broadband services.

However, the CCC argues that the ability to bundle pay TV with telecommunications services will give Telstra and Optus an unfair advantage in the market place, effectively obscuring pricing levels.

"There is the possibility that this decision will allow a reversion to a new monopoly position for Telstra," explained a spokesperson for Primus.

The CCC is now looking to the Government's Telecommunications Reform Bill currently being debated in the parliament, to support the call for accounting separation in order to provide greater visibility when it comes to bundle pricing.

"There are two parts to the current Telecommunications Reform Bill, one is legslative and the other is a ministerial directive which will contain much of the detail and the teeth," the spokesperson said. "We have made representations to Senator Alston that this directive should address issues surrounding accounting separation and competition."

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Talkback 1 comments

    Telstra better not put up thei ...MrDamage -- 15/11/02

    Telstra better not put up their prices again in the name of "greater viewing experiences".
    They always offer deals to get people in, but then the prices go up a couple of months later.
    The ACCC should keep an eye on them anyway. If we have to start paying more, then can the deal.

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