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Dec28

Written by:uanmi
Friday, December 28, 2007

Telstra has confirmed that it will not give ground to the ACCC in the battle to see who shapes the future of the Australian Telecommunications market. Telstra has submitted a new model called the "Efficient Access" pricing method to the ACCC and as anticipated the new pricing method produces the same result as the previously rejected pricing method. Telstra insists that $30 per month per customer is a fair price for access to the ULL.

Telstra will not release the full details of the pricing method as it insists that the method includes the use of commercially sensitive information and must be kept confidential.

The outcome of this battle appears to be a matter for the courts. Telstra continues to insist that Australians pay higher prices for access to the ULL than the regulator is prepared to accept. Australia already pays a penalty due to a lack of competition because most of the infrastructure is owned by Telstra.

Last year, the former Australian Government awarded a contract for improved broadband access in regional areas to a consortium including Optus. Telstra has been scathing in its public relations response to missing out on this contract, but has said it will compete in regional areas.

During 2008, the Australian Government will unveil plans for FTTN. One important aspect of this plan will be open access to the new fibre and the cost of this access. One consortium has identified an approach would be to utilise WiMax from the node to the customer thereby removing the need to access Telstra's copper. The FTTN contract is likely to shape the competition environment for the next 10 years and will be the biggest Telecommunications decision to be made by the Australian Government in the current term.

Copyright ©2007 Mark Gregory

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