In a decision that is likely to have far reaching effects on the Australian telecommunications market, the Australian Competition and Consumer Commission has ruled that Telstra must grant its rivals access to its local network.
The decision will require Telstra to open the local network to competition, forcing it to allow other telecommunications carriers to connect to its extensive copper cable network and offer services such as local calls and data transmission. The decision will have a considerable effect on the Australian telecommunications landscape according to ACCC Chair, Professor Alan Fels.
"The decision had large implications not only in the short-term for the provision of local calls, but for the emerging high-bandwidth services on which e-commerce, education and entertainment will increasingly rely into the next decade," he stated.
Fels said that he felt that without a decision of this nature that Telstra would have been unlikely to move to open up its network further.
"In the ACCC's view, without this decision, it is unlikely that such services would have been made available on a reasonable commercial basis. Competitors would be overly dependent on Telstra's choice of technologies, platforms, service processors and timing."
Telstra's biggest rival, Cable and Wireless Optus (CWO) has welcomed the decision, with its Director for Regulatory and Public Affairs, Stephe Wilkes saying that the ACCC action will result in better services for Australian consumers.
"Choosing a phone service will soon be as competitive as choosing a housing loan or car insurance," Wilkes stated. "Many more customers will feel the impact of active competition in the local telephony market with the benefits of improved service and more innovative products and pricing structures."
Wilkes said that this was the final step in breaking down the monopoly position that Telstra has held in the Australian market.
"This decision is one of the most significant made by the ACCC, it heralds the final assault on Telstra's last major monopoly - local calls," he said.
