Telstra to halve ISP costs

Telstra has responded to critics of its broadband policy by announcing a reduction on broadband prices for its ISP resellers.

Telstra's ISPConnect allows ISPs to connect to the telco's switched data network to offer subscribers ADSL connectivity. Telstra officials now claim changes have been made to its network that will result in substantial cost savings for Telstra resellers.

Mark Wilson, national sales manager for Telstra's indirect data channel, said the cost reductions will affect all ISPConnect partners, but will be more significant for those that serve customers over wider geographies.

Wilson said the telco is trying to convince its 660-odd reseller base to move to the broadband service after running roadshows last year to open up dialogue with the channel. "Based on their feedback, we knew we had to redesign the network and reduce prices," he said. "Next we will release a new range of broadband products and bundling services to stimulate more broadband activity."

Wilson denied that the pricing drops had anything to do with an Australian Competition and Consumer Commission (ACCC) investigation into Telstra's pricing model. "The ACCC investigation is a wholesale issue so it has always been at arm's length," he said.

All of the telco's retail partners will be contacted within days to discuss the new pricing. Wilson said the feedback so far has been very positive. "Most of them are saying it's about time," he said.

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