Telstra heavies smaller ISP

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The news that Telstra has been caught out blocking a competing broadband Internet provider demonstrates that the Howard government has failed to ensure a fair and competitive environment for broadband Internet services, according to opposition Senator for IT Kate Lundy.

According to a report, Telstra rejected an iiNet customer's application for ADSL broadband on the grounds of poor line quality but later accepted the same customer when he applied through BigPond.

“This indicates that the gigantic telco can and does discriminate against competitors such as iiNet in the provision of broadband internet to customers,” Lundy said.

Lundy continued: “This is not the first time my office has heard reports of this occurring and I will be requesting that the ACCC investigate this apparent anti-competitive conduct.

She said unfortunately this incident is another example of how the Coalition has failed to establish an environment that encourages the take-up of broadband [services]. “Customers and competitors have been complaining for a long while about Telstra's tactics in the provision of broadband Internet and I call on the minister to fix the problem,” Lundy said.


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