Ten ISPs, led by Intermode, have banded together in a complaint against Telstra. In the complaint, filed with the ACCC (Australian Competition and Consumer Commission), the ISPs allege that Telstra is refusing to allow them access to their ADSL services. The ISP want Telstra to wholesale access to parts of the service to the ISPs.
The group of ISPs is alleging that Telstra is behaving with anti-competitive conduct because it isn’t opening it ADSL to wholesale access in areas of the country where it isn’t required to do so. Australia’s requirement for access says that in any areas of the country where it makes economic sense for a competitor to offer service, access must be opened. The areas in question are areas Telstra has deemed unviable for competition.
“We believe that Telstra’s decision not to offer wholesale access to ADSL2+ services will lead to a substantial lessening of competition,” Internode managing director Simon Hackett said. “By excluding competitors from wholesale access to its ADSL2+ services, Telstra can lure customers of other ISPs into two or three-year contracts. This substantial lessening of competition will have an adverse impact on consumers, both in terms of price and the range of services available.”
If the ACCC side with Telstra, the company could face fines as high as $10 million AUS per offense. If it continues to go against a judgement, shoudl a judgement be issued, it can also add $1 million AUS for each day it doesn’t comply. The official complaint includes these charges:
- inflating backhaul prices by 10 fold in areas where it is the only provider
- lying about the number of available ADSL ports
- delaying the installation of competing DSLAMs by more than two years when it can activate its own in less than 48 hours
- Source
Gee, wish this had happened during my International Business class! Well written.