Telstra raises ISP ire over BigPond price drops

 

No equivalent fall in wholesale costs.

Telstra has been accused of repeating anti-competitive behaviour from 2004 after again failing to reduce wholesale DSL prices in line with lower BigPond prices announced last week.

A Telstra spokesman told iTnews that the telco did “not believe that Telstra’s new BigPond pricing, of itself, necessitated any corresponding lowering of wholesale pricing.

“Telstra Wholesale regularly reviews its commercial arrangements with our DSL customers to ensure that our pricing is competitive,” the spokesman said.

But Minter Ellison partner Richard Dammery told a conference in a far-ranging presentation on all things NBN and Telstra this morning that “recently announced broadband changes [at Telstra] seemed to follow a pattern similar to that of 2004/5 when Telstra announced changes to its broadband prices and didn’t adjust wholesale pricing.

“It’s a source of some surprise in the industry because we thought Telstra would have learned its lesson from the first time,” Dammery said.

Telstra was placed under investigation by the Australian Competition and Consumer Commission in February 2004 to check whether price changes it made to its BigPond broadband services that month “adversely affected the competitive position of its wholesale broadband customers”.

The incumbent was forced to acknowledge that impact a year later. Telstra dropped its wholesale prices and rebated affected wholesale customers some $6.5 million, and the anti-competitive proceedings were dropped.

“The ACCC considers that efficient wholesale customers are now no longer hindered from competing with Telstra BigPond's ADSL services on the basis of Telstra's reduced wholesale DSL pricing,” the ACCC said at the time.

A spokesman from the ACCC told iTnews the commission “generally” did not comment on investigations, either potential or underway.


Telstra raises ISP ire over BigPond price drops
 
 
 
Top Stories
At the top of her game
A decision to bring digital operations back in-house three years ago has paid big dividends for Tabcorp.
 
Westpac hires SAP man as CTO
Creates four new IT lead positions.
 
Qld Transport to replace core registration system
State's biggest citizen info repository set for overhaul.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...
Latest articles on BIT Latest Articles from BIT
More 4G from Optus in Darwin
Nov 21, 2014
Click to see where Optus has expanded coverage to the suburbs near Darwin.
Optus steps up regional 4G coverage
Nov 20, 2014
Once 700Mhz services are working, Optus claims regional users will have a "faster and more ...
This Huawei 4G phone costs $99
Nov 12, 2014
The $99 Huawei Ascend Y550, available through Vodafone, enters the budget market as one of the ...
4G smartphones: Microsoft's Lumia 830
Nov 7, 2014
Microsoft has announced its flagship Windows Phone, the Nokia Lumia 830 4G, will be available in ...
Do you direct debit customers? Read this
Oct 10, 2014
Authorities have been targeting direct debit practices with iiNet and Dodo receiving formal ...
Latest Comments
Polls
Who do you trust most to protect your private data?







   |   View results
Your bank
  38%
 
Your insurance company
  3%
 
A technology company (Google, Facebook et al)
  8%
 
Your telco, ISP or utility
  7%
 
A retailer (Coles, Woolworths et al)
  2%
 
A Federal Government agency (ATO, Centrelink etc)
  21%
 
An Australian law enforcement agency (AFP, ASIO et al)
  15%
 
A State Government agency (Health dept, etc)
  5%
TOTAL VOTES: 963

Vote