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
Feeling Shellshocked?
Stay up to date with patching for the Bash bug.
 
Amazon forced to reboot EC2 to patch Xen bug
Rolling restarts over next week.
 
Vodafone reveals plans to store users' online activity
Says retrieval under Govt proposal will impose massive cost.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...
Latest articles on BIT Latest Articles from BIT
Constantly rushing to the printer to stop other people seeing your printouts?
Sep 24, 2014
Lexmark's latest family of small-business printers include a feature that lets you stop anyone ...
This 4G smartphone costs $219
Sep 3, 2014
It's possible to spend a lot less on a smartphone if you're prepared to go with a brand you ...
Looking for storage? Seagate has five new small business NAS devices
Aug 22, 2014
Seagate has announced a new portfolio of Networked Attached Storage (NAS) solutions specifically ...
Run a small business in western Sydney?
Aug 15, 2014
This event might be of interest if you're looking to meet other people with a similar interest ...
Buying a tablet? Microsoft's Surface Pro 3 goes on sale this month
Aug 8, 2014
Microsoft has announced its Surface Pro 3 will go on sale in Australia on 28 August from ...
Latest Comments
Polls
Which is the most prevalent cyber attack method your organisation faces?




   |   View results
Phishing and social engineering
  66%
 
Advanced persistent threats
  4%
 
Unpatched or unsupported software vulnerabilities
  11%
 
Denial of service attacks
  6%
 
Insider threats
  12%
TOTAL VOTES: 1348

Vote