Feeds

Broadband war breaks out in Australia

Telstra v. everyone else

  • alert
  • submit to reddit

Top three mobile application threats

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. ®

The Essential Guide to IT Transformation

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.