EFTel Limited (ASX: EFT) has won an interim determination for cost relief from the Australian Competition and Consumer Commission (ACCC) regarding its Line Sharing access dispute with Telstra Corporation Ltd.
The decision was handed down by ACCC Chairman Graeme Samuel and ACCC Commissioner John Martin on Friday, 22 February 2008.
Telstra had attempted to charge EFTel $9 per month per service for access to its Line Sharing Service (LSS). EFTel needs access to the LSS for delivery of its new high speed BroadbandNext network that was announced on 1st November 2007.
Under the interim determination, that charge will be $2.50. The ACCC also gave an interim determination in EFTel’s favour on a raft of other LSS related charges.
CEO Simon Ehrenfeld said today that obtaining the interim determination was essential given the imminence of BroadbandNext.
“This decision is an excellent outcome for EFTel. This will deliver substantial bottom line improvements in the next financial year and beyond,” he said.
“Regardless of the decision, we remain a large and growing reseller of Telstra’s wholesale services, and we value our relationship with them at all times. This decision simply helps to correct a terrible profit imbalance we have had with them.”
Enquiries: Simon Ehrenfeld Chief Executive Officer (08) 9420 9999 Luke MacKinnon Major Projects Manager (02) 8231 6701 More information
EFT Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
