Netspace, a national broadband DSL Internet service provider to the consumer and small business markets, said it was "absolutely shocked" by the entry level deals offered by Telstra, as the cost of the new plans are below the wholesale price charged by the carrier to competing providers.
"If we wanted to compete with Telstra's new deals, we'd be losing at least AU$5 per month per subscriber, and in regional areas it'd be a AU$10-AU$15 loss for each customer per month" said Stuart Marburg, managing director of Netspace.
Telstra's new broadband deals -- launched the day before bitter rival Optus started offering its residential DSL services -- kick off from just AU$29.95 per month.
The ACCC told ZDNet Australia its investigation had already commenced and that it would seek to ensure that there was no predatory pricing undertaken by Telstra. An ACCC spokesperson says the market inquiry was provoked by the fact that "they're [Telstra] selling to retail cheaper than to wholesalers, making it near impossible for others to profit".
Marburg hopes the ACCC will approach the matter "with a sense of urgency", saying he wants Telstra to be forced to withdraw the product from sale until they offer wholesale prices that allow competition in service.
"Consumers need choice, and competition drives innovation in the broadband market. I just hope Telstra Wholesale will rethink its wholesale pricing so that the industry can innovate and grow the broadband market together," said Marburg.
Telsta once again show's their total lack of thought for their wholesale partners. This move only further proves to ISP'S what they already know from dealing with Telstra's constant backflips, lies and uncompetetive practices.
Considering Telstra has the Australian government to thank for it's postition in the marketplace they should let the smaller groups who do Broadband already at better prices and with better support keep providing the service and only be a supplier. Theres enough money for them this way.. But they are just greedy