ACCC to monitor negotiations over payphone service

Telstra Corporation Ltd has undertaken to hold discussions with TriTel Australia Pty Ltd, a small Sydney-based payphones company, concerning access to Telstra's smartcard technology trial, and has agreed to TriTel becoming a wholesale customer of Telstra.

This follows an investigation by the Australian Competition and Consumer Commission into allegations of anti-competitive conduct in the payphones market. The ACCC was concerned by the lack of competition in this market which is dominated by Telstra.

TriTel had complained to the ACCC that it was having difficulty obtaining a wholesale local call price from Telstra. TriTel also alleged that it was difficult to compete for payphone installation if TriTel's phones could not accept Telstra's phonecards.

Discussions are under way between TriTel and Telstra. The ACCC will continue to monitor the progress of commercial negotiations between Telstra and TriTel and competition in the payphone industry.