Feeds

Broadband war breaks out in Australia

Telstra v. everyone else

  • alert
  • submit to reddit

Intelligent flash storage arrays

There's a right old ding-dong Down Under after incumbent telco Telstra was accused of anti-competitive behaviour.

It all kicked off after the telco cut the price of its retail broadband product without offering a similar cut to its wholesale service.

Australia's competition watchdog, the ACCC has since intervened stating that based on the on the information available to date, "it has reason to believe that Telstra has engaged in anti-competitive conduct".

If found guilty Telstra could face fines of more than AUS$10m (£4m).

Last week, the ACCC slapped Telstra with a consultation notice, part of the watchdog's investigation into the alleged anti-competition.

At the time, Telstra accused the ACCC of "interfering" insisting that it would deal directly with its wholesale customers to resolve the matter.

Senior Telstra exec Bill Scales went on the attack saying that regulatory intervention from the ACCC would make it more difficult for Telstra to respond to wholesale customers' concerns.

"By imposing itself on a very competitive market, the ACCC would put at risk the tremendous benefits consumers are enjoying," said Scales.

"Precipitous regulatory intervention would add legal complexity to our wholesale relationships, which would make it harder and slower for us to deal with our wholesale customers," he said.

But many ISPs have spoken out in favour of the action with some warning that they will be forced out of business if Telstra is allowed to continue unchecked.

Primus Telecommunications - Australia's fourth largest fixed-line telecoms carrier with more than 500,000 Internet punters - is one of those operators that has spoken out about Telstra.

Its accused Telstra of doing "irreparable damage to competition in the industry" and supports the ACCC's bid to "encourage a level playing filed and prevent Telstra from using its dominant market position to limit competition for consumers".

Yesterday, Telstra handed the ACCC its response to the price squeezing allegations. The competition watchdog is now considering Telstra's submission. ®

Internet Security Threat Report 2014

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Lords take revenge on REVENGE PORN publishers
Jilted Johns and Jennies with busy fingers face two years inside
Yes, yes, Steve Jobs. Look what I'VE done for you lately – Tim Cook
New iPhone biz baron points to Apple's (his) greatest successes
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.