Telstra remedy under ACCC watch

Telstra has sent a submission to the ACCC in response to a consultation notice that cautioned the telco for acting anti-competitively when it released a range of broadband plans cheaper than what it offered its wholesale customers.

The company was given several extensions to respond to questions (asked in the consultation notice) regarding its pricing strategy. Late last week, the ACCC said it received a submission.

The commission is currently reviewing the submission.

If Telstra fails to present a reasonable argument, the ACCC will issue a competition notice. While such a notice is in force, the organisation can seek and recover pecuniary penalties from Telstra. Third parties can also seek injunctive relief or damages resulting from any anti-competitive conduct.

Several of Telstra's wholesale ISP partners have already indicated that they intend to make a claim for damages if a competition notice is issued.

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