ACCC backs down on Telstra backhaul price rise

Internet service providers have been thrown a minor lifeline after the competition watchdog backed down on plans to raise the price of the transmission backhaul bundled with Telstra's wholesale ADSL ports.

The Australian Competition and Consumer Commission today published a final access determination for wholesale ADSL prices, which applies until the end of June 2014.

The ACCC abandoned the controversial plan revealed in the draft March decision to raise aggregating virtual circuit (AGVC) fees from $33.65 per Mbps to $36.08 per Mbps in 2013-14.

It has instead set the price at $32.21 per Mbps.

The ACCC also made tiny downward adjustments to the draft ADSL port prices.

The watchdog said the sudden cut in AGVC costs was due to unspecified "updated information received in the inquiry about use of the service."

The draft backhaul price rise in March incensed carriers and ISPs alike, who were more used to seeing such prices fall — rather than rise — over time.

It is immediately unclear what impact these final wholesale prices will have on retail broadband prices for users on resold Telstra ports.

Several ISPs polled today by iTnews indicated they were working to understand the ACCC's cost methodology and what it would mean for prices.