[LINK] Telstra, and the new government .. oh-oh

stephen at melbpc.org.au stephen at melbpc.org.au
Wed Feb 27 22:21:31 EST 2008

It appears access to ADSL2+ may only be via expensive Telstra, because the 
telco switched on ADSL2+ service after being assured by the new Government 
that it would not regulate for third-party access. 

ISPs call for competition notice on Telstra
by Nadia Cameron 27 February, 2008 11:44:37


A group of 10 broadband providers is calling on the ACCC to force Telstra 
to open up wholesale access to its new ADSL2+ service

A group of 10 broadband providers has called on the Australian Competition 
and Consumer Commission (ACCC) to take immediate action to prevent Telstra 
from barring wholesale access to its new ADLS2+ network. 

The claim is being led by South Australian-based player, Internode, in 
conjunction with iiNet, Primus, EFTel, Westnet, Netspace, Adam Internet, 
Wideband Communications, Network Technology and TSN Communications. The 
letter, which was dated February 15, was sent to ACCC chairman, Graham 
Samuels, by Herbert, Geer and Rundle Lawyers acting on the ISPs' behalf. 

The broadband providers have accused Telstra of anti-competitive behaviour 
by not granting wholesale access to its new ADSL2+ broadband network and 
have called for a competition notice to be issued to Telstra under part 
X1B of the Trade Practices Act. The group has also requested a re-
examination of the declaration of wholesale XDSL services under part X1C 
of the act in areas where competition for alternative suppliers is not 

As previously reported in ARN, Telstra's decision to switch on ADSL2+ 
retail services across 900 exchanges nationally this month has raised the 
ire of several of its competitors, who claim the telco is acting 
uncompetitively by not opening up the network to wholesale access. 

The exchanges will give 2.4 million users access to high-speed broadband 
of 8Mbps-20Mbps. Telstra CEO, Sol Trujillo, said the telco switched on 
ADSL2+ services after being assured by the new Labor Federal Government 
that it would not regulate third-party access. 

Rival ISPs have highlighted several key areas of concern, the top of the 
list being Telstra's significant market power around wholesaling broadband 
services. Other issues include untenably high wholesale transmission 
pricing, increasing levels of capped exchanges and denial of access or 
delays for ISPs to install their own ADSL2+ DSLAMs. 

"In the longer term, we consider that the Commission needs to assess and 
consider other options available to address telecommunications competition 
problems that are demonstrated by the considerable obstacles to access to 
declared services stemming from Telstra's position both as the incumbent 
network owner and retail competitor," the ISP said in their letter to the 

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