D-day for Telstra's rival feesMichael SainsburyAPRIL 07, 2006...

D-day for Telstra's rival fees
Michael Sainsbury
APRIL 07, 2006

THE federal Government is expected to decide as early as next week how much Telstra should charge rivals for access to its copper wires, in a move that will influence the planned $23 billion privatisation of the telco later this year.

Communications Minister Helen Coonan will take a recommendation from a new report by the Australian Competition & Consumer Commission to the Government's leadership committee.

"Obviously we appreciate that it's very important and will very soon be looking at the ACCC report and come to a view," Senator Coonan said yesterday.

Telstra finance chief John Stanhope said he expected a decision would be made by the ACCC or the Government "next week".

"We have had the opportunity to put our case and now everybody knows it, it's time to make decisions," he said.

But it is appearing increasingly unlikely that the Government will grant Telstra's wish and opt for an average national price to access its copper wires.

The ACCC is understood to have stuck by its belief that the fairest pricing mechanism is four different geographic bands ranging from inner-city to regional.

The decision will come amid an outbreak of peace between Telstra, the ACCC and the Government.

Telstra chief executive Sol Trujillo said last week the company was in constructive talks with the competition regulator.

In a further development, Telstra's chosen fixed network supplier, Alcatel, has begun a program to hire more staff, industry sources said.

A large part of the company's $3.5 billion deal with Telstra for a new residential fibre network is on hold but it is already upgrading Telstra's existing broadband network and preparing to install new computer-based telephone switches.

The Australian