Will Internode pull out of the bush?

Internode founder Simon Hackett warns that his company could soon stop selling in areas where they are reliant on Telstra's wholesale DSL product.

"In a sense we're the last of the Mohicans," he says in this week's Twisted Wire, pointing to how some other players only provide service where they have their own DSLAMs in exchanges. He thinks the Australian Competition and Consumer Commission has taken its eye off the ball when it comes to controlling Telstra's wholesale pricing.

I ask Communications Minister Stephen Conroy whether he's concerned about the potential for companies to stop offering national coverage, before and after the arrival of the National Broadband Network. He says the new network will disrupt many parts of the industry, but in the short term the regulator needs to act, and the separation of Telstra needs to push ahead.

We also hear from Paul Brooks, owner of Layer 10 Advisory, who sides with Simon Hackett in opposing NBN Co's Connectivity Virtual Circuit pricing. We discuss how it's reminiscent of Telstra's response to an ACCC Competition Notice almost 10 years ago. And I contemplate whether it's another example of how it could benefit bigger players more than smaller ones.

As always we welcome your feedback. Call the Twisted Wire feedback line on 02 9304 5198 to leave your comments, to be featured in future programs.

Running Time: 28 minutes, 38 seconds