ACCC attacks broadband pricing

Australia's competition watchdog today criticised Telstra's handling of broadband Internet price reductions.

The Australian Competition and Consumer Commission (ACCC) is investigating whether changes to Telstra's broadband charges, which leave the retail rate only 20 cents above the wholesale rate, are anticompetitive.

ACCC chairman Graeme Samuel said the commission was acting quickly on the matter and hoped to make a decision in a matter of days not months.

"You've got to act very quickly ... If there is damage being done - and let me stress if there is damage being done - then every day that passes just exacerbates the damage and we need to deal with that as fast as we can," he said at the Australian Telecommunications Users Group conference.

"This is not a month-by-month proposition it is a day-by-day proposition."

Telstra came under fire after it undercut its wholesale customers with price reductions for its retail customer base.

Telstra was quickly forced to lower its wholesale prices as well after the ACCC intervened, but Internet service providers still believe Telstra is pricing them out of the market.

Samuel warned the ACCC will go as far as issuing an injunction against Telstra which could lead to multimillion dollar fines.

He said initial analysis of the prices indicated that Telstra's pricing conduct would be a "price squeeze" on its competitors.

The ACCC's tough stance, Samuel said, sends a warning across the entire industry.

"If you are going to make major changes to your service offerings that have the potential to have an anticompetitive impact - you need to engage in dialogue with the ACCC," he said.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Computerworld Staff

Show Comments

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?