The Australian Competition and Consumer Commission is continuing to closely investigate Telstra's rollout of services that will allow competitors to provide high speed Internet services using Telstra's copper network.
The ACCC has required Telstra to provide it with extensive detail on a weekly basis on the way in which it now intends to provide its competitors with prompt access to its copper network as well as the uptake of Telstra's retail Asynchronous Digital Subscriber Line technology (ADSL).
"If this information indicates Telstra is attempting to obtain a substantial anti-competitive advantage over its competitors in the provision of these services, the ACCC will move to take further action", ACCC Chairman, Professor Allan Fels, said today.
"Telstra's ubiquitous copper network is and important platform for e-commerce, education and entertainment services into the next decade, so it is essential that consumers benefit now from competition in the provision of these services.
"It is also crucial that these new technologies and services are not driven by Telstra's control of the local network since competition by a wide range of players provides a superior way of meeting the new telecommunications needs of consumers and businesses".
There have also been concerns expressed about the pricing of these products, a number of which the ACCC is now addressing in arbitrations.
In March this year Telstra provided the ACCC with a commitment to launch its unbundled local loop and wholesale ADSL products simultaneously this month. Telstra also indicated that Telstra's retail ADSL product would be released around the same time. Whilst Telstra has technically met this commitment and the ACCC is aware that other providers will be rolling out services in competition with Telstra the ACCC remains concerned that other competitors are being delayed from launching their own retail services.
The ACCC has expressed concern at some of the conduct of carriers seeking access to local loop and DSL services.
"Evidence to date suggests that some companies have been slow in lodging orders with Telstra and others have not completed preparing their own networks for these services. This is a case of the whole industry needing to improve its performance. There are some indications this is starting to occur and the ACCC will continue to closely examine progress.
Background
The ACCC has received several complaints about Telstra's launch high speed Asymmetric digital subscriber line services (ADSL) connected to the Unbundled Local Loop Service (ULLS) which was declared by the ACCC in July 1999. ADSL is a high bandwidth downstream service, coupled with a lower bandwidth upstream service
The ACCC declared the ULLS to enable service providers to deliver innovative Internet, multi-media and data services more quickly.
Declaration of the ULLS enables service providers to deliver competitive xDSL services to end-users (xDSL refers to the 'family' of digital subscriber line services that utilise compression technologies to transmit high-speed data and voice signals along standard copper wire).
On 4 August 1999 the ACCC mandated access to Telstra's local network, the last part of Telstra's original network monopoly, allowing competitors direct access to its copper lines that connect customers to local telephone exchanges.
The decision was made to enable Telstra's competitors to provide local and long-distance as well as advanced high-speed services to customers at lower prices. Without this decision, it is unlikely that such services would have been made available on a reasonable commercial basis and competitors would be overly dependent on Telstra's choice of technologies, platforms, service processes and timing.
The ACCC's final report to its local access inquiry on whether to declare certain local telecommunications services is available on its website. The report details the ACCC's findings of why declaration of the specified services would be in the long-term interests of end users and includes service descriptions of each of the services that are being declared. After the report's publication, the ACCC will gazette relevant instruments of declaration specifying the four services being declared as a result of its inquiry.