Breaking News: Melbourne AFL club climbs ladder with IT

ZDNet / iiNet / Story

Telcos fuming over Telstra access win

By Liam Tung, ZDNet.com.au on September 11th, 2009

The Australian Competition Tribunal's (ACT) decision to wind back regulated access to Telstra's wholesale network has outraged the telecommunications sector.

The ACT yesterday issued a statement claiming there was sufficient competition in certain metropolitan areas to wind back regulated access to Telstra's wholesale network in them.

The ACCC will now publish a biannual list of the areas where Telstra will not be obligated to provide access to its competitors. The tribunal's decision was based on the view that competition from internet service providers (ISPs) who had installed their own ADSL equipment at Telstra's exchanges, meant that the ACCC could step away from its role of ensuring Telstra gives access.

"Whether an exemption will apply in a particular area will depend on a number of factors, including the number of Telstra's competitors already using the Unconditioned Local Loop Services in that area as well as their market share," the Tribunal noted.

While Telstra has welcomed the new rules of engagement with its competitors, the decision has been slammed as a joke by the rest of the industry.

"For the exchanges they want to make exempt," Primus boss Ravi Bahtia told ZDNet.com.au, "no one can get in there anyway. [Telstra] either declares them to be full or it takes you 12 months to get in. This whole regulatory arena in Australia is getting more curious by the minute."

Bahtia said the Tribunal was out of touch with the business sector. "They keep handing out rulings based on legal presentations made to them. It is about they talk to business people face to face," he said.

A Telstra spokesperson said, "In granting the exemptions the ACT has recognised the highly competitive market that now exists in CBD and metropolitan areas."

An AAPT spokesperson reckoned the decision meant Telstra could now block its competitors from accessing its exchanges. "[It] concludes that Telstra would be able to refuse supply of wholesale voice services in an exchange where there are three competitors with DSLAMs (ADSL multiplexers), even though none of these three DSLAMs is capable of providing an alternative voice service," a spokesperson told ZDNet.com.au.

Optus' General Manager, Regulatory Affairs Andrew Sheridan, said the decision showed why regulation over Australia's telecommunications sector was in need of an overhaul. "It is hard to see how competition and customers will benefit from this decision," said Sheridan. "It reflects the culmination of a long campaign by Telstra against the current regulations, forcing the Tribunal into a corner on legal technicalities."

Yesterday's decision follows the ACCC's recent change to its pricing principals for access to Telstra's Unconditioned Local Loop Services (ULLS). ULLS enable the provision of so-called "naked DSL" services, promoted heavily by iiNet. The current rate of $14.30 for ULLS access is set to increase to $23.60 in 2011-12.

According to iiNet's regulatory affairs spokesperson, Steve Dalby, the Tribunal's decision yesterday was consistent with the ACCC's recent decision to raise the price of ULL while lowering the price of Line Sharing Services (LSS), and that it would threaten its investments in DSLAMs.

"[The Tribunal] has justified the exemption on the basis that companies like us are providing naked DSL. We're providing a broadband service, and they're saying therefore there is enough competition in the wholesale market to remove exemptions. They're telco services, but they're not the same sort," he said.

"For the last 12 years, the ACCC has been encouraging the use of ULL as a path to full facilities-based competition. Now they're saying you should buy wholesale ADSL and resell it," he said.

Dalby said the new pricing principals, which would only apply where the ACCC intervenes in a price dispute, would damage its naked DSL strategy. The ISP added around 67,000 naked DSL customers over the past 12 months.

Talkback

hahaha

lol!

AnonymousAnonymous September 11th, 2009
Report offensive content Reply (0) (0)

@hahaha

***lol*** Karma, Telstra to be sepereted.

AnonymousAnonymous September 15th, 2009
Report offensive content Reply (0) (0)

NBN

Let's just hope the NBN goes ahead so that all the arguments over access to the last mile can be removed. It's painful to have to read about it every other day.

TerryTerry September 11th, 2009
Report offensive content Reply (0) (0)

Last Mile

This decision is neither about the NBN or the last mile. It is about the use of Telstra hardware to supply voice services. In the end it would seem some Telcos took the "cheap" option and installed hardware to supply data only, but relied on Telstra hardware to supply a voice service. The ACCC has now simply made a decision that if you want to be a real Telco, it is now time to supply your own hardware to deliver these services. Access to the last mile via ULL has not changed (except for ongoing access pricing reviews).

The way I see it, the ACCC has leveled the playing field. Because the Telcos are now fuming only gives credibility to Telstra's argument that these Telcos were on a pretty good deal while the ACCC allowed competition to develop. Now that it has developed, it's now time to stand on your own two feet.

FrankFrank September 12th, 2009
Report offensive content Reply (0) (0)

The umpire(s).

Hello Frank,

I believe they took the cheap option (as would we all) because it was law to do so.

It was law because Telstra inherited the PSTN and regulations were therefore required to lessen Telstra's "initial" 100% monopoly clientele.

So the nationwide PSTN received by Telstra was an even cheaper but ultimately much more lucrative option for Telstra, than anything their opponents have gained (just check Telstra's profits for clarification).

The level playing field is a furphy and will never eventuate (sans NBN) because Telstra did received the PSTN. Yes Telstra was later bought and is owned by shareholders, but after Telstra received the network.

But it now seems with further competition, some regulations which were initially required, are now being seen as becoming superseded, by the umpire(s).

I have castigated Telstra's cheer girls for whinging about the ACCC (and to a lesser extent ACT) verdicts, in the past. So relating to these two new verdicts, whether we agree or not, it would be hypocritical of us to be like Telstra and now chuck a tantrum, I feel.

It will be interesting to see if Telstra's competitors do a Telstra and trudge off to court though!

There's no point in having an umpire and saying what a great bloke he is, when you agree with his verdicts. But then becoming no better than whiny Telstra and complaining when the verdict goes the other way.

If this is the umpires decision, so be it!

RSRS September 12th, 2009
Report offensive content Reply (0) (0)

@The umpire(s).

Hi RS,

You may also want to look at http://www.commsday.com/node/465. I also details some implications for the NBN

stevesteve September 12th, 2009
Report offensive content Reply (0) (0)

Thanks

Thanks Steve, that was very interesting!

RSRS September 13th, 2009
Report offensive content Reply (0) (0)

@Last Mile

True, but that doesn't allieviate from the issue of competitors getting their own DSLAMs into the exchanges so they can compete. Whoever controls the last mile controls access to it and if Telstra say "no you can't put a DSLAM in that exchange" then that's less competition for them.

My point about when the NBN gets rolled out (assuming it gets rolled out) will mean that the last mile will be controlled by a wholesaler and not a retailer, so from their perspective it's better to have as many providers as possible in each location as each one would generate revenue for them. The playing field won't be level until the last mile is out of the hands of a retail provider.

TerryTerry September 12th, 2009
Report offensive content Reply (0) (0)

Think carefuly what you wish for

Hi Terry, I would be think carefully what you are wishing for. Just becasue a company is wholesale only don't mean they will be any cheaper. In fact they may be able to charge what they like, because they won't be saddled with a retail business

AnonymousAnonymous September 12th, 2009
Report offensive content Reply (0) (0)

Read my comment

I was never talking about price, I was talking about accessibility.

Competition can't exist if the wholesale provider is also competing on a retail level, and that wholesale provider can simply deny their competitors wholesale access.

You're right access to the wholesale network may well end up being more expensive, but considering in the current situation competitors can be flat out denied access, paying more and having access seems like the far better option.

TerryTerry September 13th, 2009
Report offensive content Reply (0) (0)

Monopoly

I hope the govt are not going to replace one monopoly with an even more expensive monopoly

AnonymousAnonymous September 14th, 2009
Report offensive content Reply (0) (0)

Why do Australians get screwed over?

Because people let these telco's or Telstra take advantage of us.

AnonymousAnonymous September 12th, 2009
Report offensive content Reply (0) (0)

Nomenclature

"The Australian Competition Tribunals'... "

The apostrophe is in the wrong place. The 'tribunal' is a singular entity.

Mel SommersbergMel Sommersberg September 12th, 2009
Report offensive content Reply (0) (0)

Apostrophe

And I sure know where I'd like to shove the ACT's apostrophe !

MikeMike September 13th, 2009
Report offensive content Reply (0) (0)

Knifes edge

Now many will see this decision as wrong, some will see it as right, either way its not about the end user.

Its about what company is forced to do by regulation and that effects both investment and the health of a company.

The ACCC may have justification as does Telstra in this decision. The cost to supply services to Other companies who have no choice but to piggy back on their services because they don't have the investment dollars to roll out their own infrastructure shouldn't complain. After all if they expect to get get it for nothing, Telstra would collapse and make things twice as bad.

If people are looking for a scapegoat they need to blame poorly informed and poor decision making against past and current government as well as Telstra, after one dancing alone does not create a situation.

AnthonyAnthony September 13th, 2009
Report offensive content Reply (0) (0)

Anthony No-brain

Telstra created their infrastructure during an extended period of no-competition & piggy-backing off the publicpurse until they were making zillions. They were also ripping everyone off so badly that the Gov't of the day decided to bring in a little competition.

How do you suppose another company would achieve the same infrastructure that Telstra has without that kind of support. You dipstick.

Rex Alfie LeeRex Alfie Lee September 16th, 2009
Report offensive content Reply (0) (0)
Add your opinion

In order to post a comment, you need to be registered. (Sign In or register below)

Post your comment

Resource Centre Useful content from our premier sponsors

ZDNet Australia Live

A user from Melbourne measured 12506kbps @ Broadband Speedtest.

1 minute ago, Click here to find out how fast your internet speed is.

Google Chrome turns 2: Can we skip the toddler years? http://bit.ly/cpLxxK

Update: Samsung takes on the Apple iPad with the 7 inch Galaxy Tab device - ZDNet (blog) http://bit.ly/du2qqN

Is this Microsoft's new Internet Explorer 9 interface? http://zd.net/djqSVV #tech #ie9 (via @zdnet)

Google Chrome turns 2: Can we skip the toddler years?: By Christopher Dawson | September 2, 2010, 8:26pm PDT... http://tinyurl.com/32eqwgp

ZDNet: Google Chrome turns 2: Can we skip the toddler years? http://zd.net/b6Wa7p via themacoylife.tk

Community management: The 'essential' capability of successful Enterprise 2.0 efforts | ZDNet http://zd.net/d2hNIO

Google Chrome turns 2: Can we skip the toddler years? - ZDNet (blog) http://bit.ly/9a3QfF

Dear Sir or Madam, How are you doing ? This is Lucy from Shanghai Jiabei Instruments Co.,Ltd. We specialize in manufacture aluminu...

11 minutes ago by Tinaliu on Woolies readies IT for Bunnings challenge

Vic Govt releases report by independent consultancy saying the state's smart meter roll-out will save up to $5bn http://bit.ly/beNoXF

Samsung's Android tablet will arrive in Australia in time for Christmas http://bit.ly/dzyjxV

Daehn's Brain: Google Chrome turns 2: Can we skip the toddler years? - ZDNet (blog) http://ow.ly/18Qu8X

Firefox (google): Google Chrome turns 2: Can we skip the toddler years? - ZDNet (blog) http://ht.ly/18QtIz

`Mockingjay' receives midnight launch at NYC store: At guides of Wonder, fans stood for severa... http://bit.ly/aarsGx etailersXclusive.com

A fantastic SEO for Firefox Plugin to extend your SEO/PPC efforts beyond the first step http://bit.ly/9qu5OJ

http://www.zdnet.com/blog/networking/does-cisco-buying-skype-make-sense/115


cisco buying skype

Samsung's Android tablet will arrive in Australia in time for Christmas http://bit.ly/dzyjxV

Google Chrome turns 2: Can we skip the toddler years? http://bit.ly/95m6df

@Delaypat that's what I thought.. well you may have to do a bios update so.. http://bit.ly/bW4I8C . Some of them have been over heating

How green is your mobile phone? ยป ZDNet: http://zd.net/biKDBK

Samsung's iPad rival set for Christmas http://zdnet.com.au/339305780/

Waukee Fest offers taste of Americana http://bit.ly/d3ai1a

RT @darrenpauli: Police mole busted by IT audithttp://bit.ly/cZYIA8

RT @dbmoore: RT @mkrigsman: On ZDNet: Understanding Marin County's $30 million ERP failure http://zd.net/dcikhw #CIO #itfail #EnSW

Want a decent tablet that isn't an iPad? You're in luck. Samsung has your Christmas present. http://bit.ly/dzyjxV

Police mole busted by IT audithttp://bit.ly/cZYIA8

The Government (if it stays in) is headed for a big fall and will take down Australia down with it. The Australian public and most of the...

39 minutes ago by flezzkk on Conroy ignored industry on NBN: Slattery

Cisco Data Center Ethernet: Cisco has worked very closely with VMware to create new technologies that enable virtu... http://bit.ly/bS5B3g

And again, NBN = National Broadband Network. The aim is for everyone nationally, to benefit. And yes people pay via their taxes and will...

54 minutes ago by RS on Telco alliance acting on self-interest: IDC

Commonwealth Bank chooses Brisbane based GBST for new institutional equities trading solution http://ow.ly/2yTCx. http://ow.ly/2yTFh.

peaking of which, I have asked you 2 questions many times, which have gone unanswered just as many times, so seriously... what is good fo...

1 hour ago by RS on Telco alliance acting on self-interest: IDC

peaking of which, I have asked you 2 questions many times, which have gone unanswered just as many times, so seriously... what is good fo...

1 hour ago by RS on Telco alliance acting on self-interest: IDC

Slattery - your parent company was consulted I think...TPG? And calling the govt communists does not help your cause. Oh and how does c...

1 hour ago by Uh_ah on Conroy ignored industry on NBN: Slattery

Time = Money. To put it bluntly Linton. Optical Fiber to the premises = reduced transit times for sending and receiving data, multi pur...

1 hour ago by Jahm Mitt on 1Gbps NBN fans 'just plain stupid': Linton

RT @joshgnosis Should Microsoft apologise to "MEN" for the meter maids at #auteched last week ? http://bit.ly/cDI50d [ HUH ? WTF ?! ]

I like sex. I like masturbating. I like porn. I like Meter Maids and most women. I don't think much of the christian "anti-se...

1 hour ago by Jahm Mitt on Microsoft sorry for Meter Maid bikinis

Costs, security burden private cloud ideal | ZDNet.Au Priorities http://bit.ly/9v09BI via@Tessa_Alfred

NBN key to open government: Lundy http://zdnet.com.au/339305772/ #gov2 #gov2au

Senator Stephen Conroy must be on of (if not the) most incompetent people in politics!! http://goo.gl/tzA6 #conboy

RT @joshgnosis: NBN key to open govt: Lundy http://bit.ly/cO0n13 #openinternet #gov2

I have asked this question of you before, so what is your prediction of the population/SMB shifts to the already NBN enabled areas of Smi...

2 hours ago by advocate on Telco alliance acting on self-interest: IDC

NBN key to open govt: Lundy http://bit.ly/cO0n13

Why am I surprised Conroy didn't consult with anyone credible whilst dreaming up this scheme. NBN shouldn't be about fibre or ...

2 hours ago by Scott W on Conroy ignored industry on NBN: Slattery

The bank and retailers have no interest in your security, as long as it's quicker and cheaper for them to make money. Contactless ...

2 hours ago by Scott W on NAB rolls out contactless terminals

Charge them all!

2 hours ago by Scott W on NAB rolls out contactless terminals

Well it's a reasonably simple premise, FTTH will be a direct benefit to your business which you don't have to pay for, you accuse...

2 hours ago by advocate on Telco alliance acting on self-interest: IDC

Walk in the door, get charged. Walk out the door, get charged. Hey, doesn't that sound like a new banking charge? Walk into the b...

2 hours ago by Scott W on NAB rolls out contactless terminals

Maihi had referred to the manipulation of ATM software to steal customer bank details as phishing; even though this is not the usual use ...

2 hours ago by darrenpauli on Banks struggle against ATM bombings

Do you agree that Microsoft should apologise to men for the meter maid debacle? http://bit.ly/cDI50d

Conroy ignored industry on #NBN: Slattery: http://bit.ly/b6ankQ [Who's surprised?]

Doctor, CEO demands crippling health IT - Business - News http://ff.im/-q984M

Victoria attracts 400 more IT jobs http://zdnet.com.au/339305513/

This story has been liked 5 times in the last 24 hours!

RT: @zdnetaustralia: Easy access to data is more impt than location, w/ cost & security preventing companies creating.. http://bit.ly/c9IKY6

Easy access to data is more impt than location, with cost and security preventing companies creating a private cloud http://bit.ly/c9IKY6

RT @SydneyHomeless: Conroy ignored industry on #NBN: Slattery - http://bit.ly/cXDfnT

Slattery accuses Conroy of ignoring the telco industry when it came to building the NBN http://bit.ly/cHKKqJ

Banks struggle against ATM bombings http://bit.ly/bQPCgG

Chrome usage creeps up on Microsoft http://bit.ly/9OlhG5

New iPods in Australia next week http://bit.ly/d9UQCB

Elements of this copyroght discussion are a cause for concern - what if it is a shared internet connection? http://icio.us/tzynoy

Yesterday, it distressed me greatly that an Australian MP was forced to resign. NSW MP internet misuse 'flawed' - News http://bit.ly/b69tN2

Thanks, @Audrey_William. #RNOW's latest high profile client in Australia RT #Vividwireless takes on #RightNow CRM http://tiny.cc/crru1

The internet is full, what now? http://bit.ly/cNEbaT

This story has been liked 5 times in the last 24 hours!

This story has been liked 5 times in the last 24 hours!

Keep up with ZDNet Australia

LinkedinLinkedin Join our network

RSS FeedsRSS Feeds Subscribe now

NewslettersNewsletters Subscribe today

TwitterTwitter Follow us

Compare Broadband Plans

Powered by WhistleOut

« 1 of 3»
1) Telstra BigPond40 plans 3%
2) Optus73 plans 6%
3) Netspace23 plans 5%
4) 39 plans 3%
5) iiNet31 plans 1%
1) ADSL2+ Broadband Plans 1%
2) Mobile Broadband Plans 2%
3) Cable Broadband Plans 2%
4) ADSL Broadband Plans 3%
5) Naked DSL Broadband Plans 1%

Mobile Phones | Broadband

CBS - ZDNET Australia Partner Services

Sponsored resources