ACCC gives Telstra's ADSL the all clear

The Australian Competition and Consumer Association (ACCC) took the heat off Telstra Thursday by revoking the Competition Notice it issued to the telecommunications giant late last year.

Due to pricing and structure changes in Telstra's wholesale ADSL product, the ACCC believes consumers now have a wider choice of service providers for broadband Internet access.

The ACCC in September last year was concerned that Telstra's pricing of its wholesale ADSL product was too high to allow service providers to compete with Telstra's own BigPond ADSL service.

Following the notice, Telstra reduced its ADSL wholesale price by more than 30 per cent late last year. This was deemed not enough by ACCC, who amended the notice in November and gave Telstra until 21 March, 2002 to make further changes to allow increased competition in the ADSL market.

Yesterday the ACCC announced it was finally satisfied that Telstra has made significant improvements to allow competition in the marketplace.

Telstra's failure to comply could have been deemed a breach of the Trade Practices Act and made it liable for a $10 million fine.

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