ACCC to assess Telstra's wholesale broadband price reductions

The Australian Competition and Consumer Commission welcomes Telstra’s announcement of price reductions for some wholesale broadband services in response to the Advisory Notice issued yesterday, ACCC Chairman, Mr Graeme Samuel, said today.

While the ACCC is pleased with Telstra’s announcement, the full impact of these changes on the level of competition amongst internet service providers will need to be assessed. Accordingly, the ACCC will continue to investigate the matter to determine whether Telstra has or is still engaging in anti-competitive conduct.*

“The wholesale price cuts are encouraging, especially for consumers in regional areas, and the ACCC expects this will result in service providers offering better deals to consumers. The ACCC wants to ensure that the wholesale price drops go far enough, and are not unduly delayed. It is vitally important that a competitive broadband market develops in Australia in order to achieve the greatest long-term benefits to residential and commercial end-users”.

Background

*Section 151AK of the Trade Practices Act 1974 prohibits a carrier or a carriage service provider from engaging in anti-competitive conduct. This is known as the competition rule.