a great christmas present mm said

Telstra forced to slash line access fee by 65pc
23rd December 2006, 9:00 WST

theage/thewest.com.au

Telstra is bracing itself for an influx of new broadband competitors after a decision by the competition regulator to cut a monthly network access price by almost two thirds.


The interim decision by the Australian Competition and Consumer Commission related to the monthly price Telstra can charge for line sharing service (LSS).

LSS is similar to the unconditioned local loop (ULL) service — which allows Telstra’s rivals to install their own broadband equipment in telephone exchanges and rent their copper between the exchange and the customer — but only uses half of the available capacity.

Telstra still provides phone calls on the same telephone line.

Telstra currently charges up to $9 a month for LSS, but the ACCC’s interim decision has cut that fee to $3.20 for iiNet and an unnamed competitor. Both made pricing complaints to the ACCC.

IiNet chief executive Michael Malone said the revised price — which was introduced on Thursday — would save the company $700,000 a month.

“It’s a great Christmas (present),” Mr Malone said. “We had a tough first half but the last six months have been very good.”

An ACCC spokesman said the commission was unable to release its reasons for the pricing decision unless all parties involved agreed to waive a confidentiality clause.