Feeds

Telstra backs down in BB pricing row

Fair dinkum

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

Telstra has buckled to industry and regulatory pressure and slashed the cost of its wholesale broadband service.

Australia's dominant telco had faced the threat of legal action and the possibility of multi-million dollar fines after being accused of anti-competitive behaviour. But today it announced that broadband punters would benefit from low prices as a result of its new wholesale access packages.

The telco is introducing two new options that it claims will result in lower retail prices for consumers.

And in a sideswipe at the competition watchdog, Telstra said its announcement would "bring stability and predictability to the market place, and help avoid distracting and expensive regulatory intervention".

In addition to current charges, Telstra is to offer its wholesale customers a new 'Protected Rates' package with wholesale charges at a 40 per cent discount off effective retail prices across all plans, including entry-level broadband plans.

Wholesale customers will also be offered a 'Growth Option' package that offers wholesale ISP customers further price reductions on higher-speed plans.

Said senior Telstra exec Bruce Akhurst: "Telstra's new broadband wholesale pricing packages avoid retail price increases, preserve the benefits of competition, and offer our wholesale customers rate security and stability.

"As a result of listening to our wholesale customers, Telstra is announcing two innovative broadband wholesale pricing packages that will simultaneously promote sustainable competition and expand the overall market over the long-term," he said.

Exactly what ISPs and other operators make of Telstra's climb down remains to be seen.

However, in an interview with Dow Jones the head of the Australian Competition & Consumer Commission (ACCC) said that it might be prepared lift the competition notice slapped on Telstra.

"Our preliminary analysis of what they've proposed suggests that they've [Telstra] now reached a competitive wholesale pricing structure," ACCC boss Graeme Samuel told the newswire service.

The ACCC is to seek comment from the industry on Telstra's move before making any decision.

Telstra said it introduced the new plans "voluntarily" after taking into account feedback from wholesale customers and the ACCC.

"Telstra has always believed that its position has been legally and commercially justifiable, but we have been willing to listen to our wholesale customers and the ACCC to address their concerns." ®

Related Stories

Telstra faces court over broadband price cuts
Telstra faces fines over broadband price cuts
Broadband war breaks out in Australia

Secure remote control for conventional and virtual desktops

More from The Register

next story
Crouching tiger, FAST ASLEEP dragon: Smugglers can't shift iPhone 6s
China's grey market reports 'sluggish' sales of Apple mobe
Sea-Me-We 5 construction starts
New sub cable to go live 2016
EE coughs to BROKEN data usage metrics BLUNDER that short-changes customers
Carrier apologises for 'inflated' measurements cockup
Comcast: Help, help, FCC. Netflix and pals are EXTORTIONISTS
The others guys are being mean so therefore ... monopoly all good, yeah?
Surprise: if you work from home you need the Internet
Buffer-rage sends Aussies out to experience road rage
EE buys 58 Phones 4u stores for £2.5m after picking over carcass
Operator says it will safeguard 359 jobs, plans lick of paint
MOST iPhone strokers SPURN iOS 8: iOS 7 'un-updatening' in 5...4...
Guess they don't like our battery-draining update?
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.