Telstra will defer changes to its network which may have affected service providers offering inexpensive high speed data services to customers, following Australian Competition and Consumer Commission intervention.
The ACCC is investigating the allegations that Telstra planed to change the network to the detriment of the service providers. "With new technology, the service providers claim they can deliver multiple voice lines, high speed data and Internet access over Telstra's basic copper network," Mr Rod Shogren, Commissioner with responsibility for telecommunications, said today.
"Service providers say the proposed changes would prevent them using the inexpensive new technology. They advised the ACCC that the only available alternatives would be prohibitively expensive Telstra data services. "The ACCC is aware of one service provider who has been notified that some equipment used to deliver high speed data services may not operate on the lines."
Telstra had said that from 11 May 1998 it would be unable to guarantee that the non-voice technology will function, due to upgrades of the Telstra network. "This has created fears that Telstra will be making significant changes soon. "The ACCC has written to Telstra for more information and will be investigating the complaints further. It is concerned that the substantial increase in costs for service providers may lessen competition in the markets for data services, Internet access and, potentially, local calls.
"Telstra has agreed to postpone changes to the service. The ACCC expects a full response from Telstra soon and will be able to fully assess the matter then." Background: The leased line services, known as 'permitted attachment private lines' (PAPLs) allow service providers to lease simple copper tie-lines between two sites which can carry one or two voice signals or a small amount of data.
Using DSL (digital subscriber line) modems the copper lines can be made to carry up to 30 voice signals or high-speed data, internet, video and other services, allowing them to be used instead of Telstra's more expensive 'Digital Data Services' (DDS). For the DSL technology to work, the lines must be uninterrupted copper from one end to the other (called 'DC continuity').
Telstra has not guaranteed continuity since 1995 but it appears to have supplied particular lines on this basis.