Feeds

ACCC flags shift in regulation

Future of ADSL still matters while Oz waits for NBN

Internet Security Threat Report 2014

The ACCC has re-opened the long-standing debate about wholesale ADSL regulation, issuing a discussion paper as the precursor to an inquiry as to whether the sector needs greater regulation.

While Australia’s infrastructure-based ADSL competitors – those who have installed their own DSLAM networks – have their access to Telstra’s copper network protected by regulation, there is no similar regulation protecting the host of ‘switchless’ retailers buying wholesale ADSL services.

“[T]he ACCC has regularly received complaints from access seekers about the level of Telstra’s wholesale ADSL prices relative to Telstra’s retail ADSL charges,” the regulator notes

As the Australian Competition and Consumer Commision notes in its discussion paper, it has previously considered whether or not wholesale ADSL should be regulated – in 2005-06 and again in 2010 (leading to an announcement earlier this year that it was adoption a “wait and see” approach to the issue).

The problem for the industry is that there’s only weak competition in the wholesale ADSL market. Telstra’s wholesale services are offered across its 2,800 “ADSL-enabled” exchanges, the Commission states, but other DSL infrastructure owners (it nominates AAPT and Optus as examples) have a far more limited footprint.

This means any retailer seeking a national footprint can do so only if it deals with Telstra. “It is clear that Telstra has retained a dominant position in the supply of retail and wholesale ADSL services,” the ACCC says.

The inquiry will also look at what competition concerns are likely to develop in the market; the likelihood that “effective” competition might emerge in the wholesale ADSL market; and whether Telstra’s proposed structural separation is likely to make the market more competitive without specific regulation.

The regulator appears to have a particular eye to the rural and regional markets, noting that in these areas, competing networks “have not developed to any material extent”.

The ACCC is accepting submissions until January 19, 2012. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
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.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.