Internode accuses Telstra of wholesale price bias

 

Cost dispute escalates.

ISP Internode has accused Telstra of giving more favourable wholesale pricing and terms to service providers not rolling out competing DSLAM networks.

A Telstra spokesman refused to be drawn on the specific allegations.

"We are not interested in a public battle on what is a private and confidential negotiation," the spokesman said.

As many Australians tuned into an announcement by independent MP Bob Katter on the country's political future, Internode managing director Simon Hackett stepped up his campaign for Telstra to cut its wholesale port prices on the broadband forum Whirlpool.

Internode and at least two other ISPs lodged complaints with the competition watchdog last month that sought intervention to resolve the dispute.

Hackett speculated yesterday that variance in retail pricing among Telstra port resellers was "not about negotiating skill" differences between the various ISPs.

"What makes you think [Telstra Wholesale] aren't playing favourites in terms, conditions and/or timing?" Hackett said.

"There are lines here that I can't cross in public due to NDA's [non-disclosure agreements], but surely you're able to read between them a bit?

"Think about it. Consider that ISPs who choose to make massive investments in their own DSLAM infrastructure are likely to be considered differently by [Telstra Wholesale] to ISPs who don't do so.

"Our treatment should of course be identical, but alas we don't all live in that ideal world, do we?"

Internode and other ISPs were under pressure to either cut the price of resold Telstra services or see customers jump ship to BigPond.

"We fully appreciate that in this interim period (before the price squeeze is dealt with properly by Telstra Wholesale), we will lose some customers to BigPond," Hackett said.

"We're sad about that. But we're not so sad about it that we're prepared to go broke to avoid it happening, because if we go broke, then we can't help our customers in the long term either."

Hackett said Internode would revise its Telstra port-based plan prices "once Telstra Wholesale provided a commercially acceptable revision to their source costs".

"We've been promised a commercially acceptable offer by Telstra 'next week' for the last several weeks," Hackett said.

"I'm personally optimistic that one of these 'next weeks' soon will be the one where that actually happens."

He said it would take "about a month" for Internode to implement new prices once it had received an acceptable written offer from Telstra.

Telstra's spokesman said the company's wholesale division was in "negotiations with many... DSL customers."

"We are being flexible and commercial and doing the best we can to accommodate their requirements," the spokesman said.

"Broadband is a very competitive market and Telstra Wholesale is committed to making sure that its commercial offers are attractive to wholesale customers and competitive to the market."

Copyright © iTnews.com.au . All rights reserved.


Internode accuses Telstra of wholesale price bias
 
 
 
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: 972

Vote