Telstra says it is encouraging, rather than avoiding competition, by averaging the amount it charges rivals to use its copper wire network.
The telco's comments came after Optus chief executive Paul O'Sullivan today labelled Telstra's new pricing as "unfortunate, destructive and negative".
Telstra this month said it would average the cost rivals will pay to rent each copper line running between a Telstra exchange and the user's premises.
It will charge competitors a flat $30 per month unbundled local loop (ULL) access fee, despite the corporate regulator indicating it would prefer Telstra retain a four band pricing regime - with different prices charged for remote, rural, regional and city areas.
The charges will rise by up to 240 per cent in some areas from $13, and fall from $100 in other areas.
"This isn't an increase to $30 a month, in fact for a large part of Australia it is a decrease," Telstra spokesman Warwick Ponder said. "That has to be made very clear.
"It is averaging, so everyone pays the same no matter where they come from and encourages competition in large parts of Australia."
Ponder said the move should encourage competition in areas outside of metropolitan Australia, which Telstra's rivals have traditionally avoided, due to the higher costs of line rental.
"That is the exact reason why our competitors have cherry-picked our urban areas for so long, simply because it is cheap for them to do that," Ponder said.
"Competition in rural regional areas will be significantly enhanced by reducing access fees in those areas."
Telstra also rubbished claims by Optus that it had been delaying a decision by the Australian Competition and Consumer Commission (ACCC) for over five years.
"We have been asking the ACCC for a decision on pricing since 2000," a Telstra spokeswoman said.
The ACCC has stated a preference for Telstra to offer differing bands of pricing.
The ACCC is currently considering Telstra's new access prices and is preparing a report which it will submit to the government on Telstra by March 31.
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