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ACCC decision cuts regulated transmission service prices

Wholesale ADSL regulation a non-starter, however

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While backing away from further regulation of wholesale ADSL services, the ACCC has issued a new price determination for regulated transmission services.

Its interim prices for backhaul services (the price wholesale customers pay for long-haul transmission) put in public what the industry has known for a long time: inter-capital services (such as a connection between Sydney and Melbourne) are much cheaper than services to regional locations where there’s less backhaul competition.

The ACCC interim prices should also help Telstra’s wholesale customers gauge the prices they currently pay for backhaul services.

In deciding not to apply new regulation to Telstra’s ADSL services, the regulator says that with a number of wholesale contracts due to expire at the end of the year, the industry may be able to achieve better wholesale prices without its intervention. ®

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