What the ACCC says:

• “Telstra had walked away from upgrading its network to a fibre to the node model because it wanted to INCREASE the price for existing broadband services in order to be able to charge higher prices for access to the new network.”
  
  Mr Samuel said the ACCC had not thought it proper to “artificially inflate” broadband prices just so Telstra could meet its internal profit targets.¹

• “…Telstra, in particular, may be able to reinforce its position in the segment at any time by choosing the level of vigour with which it competes for particular tenders. Its control over the CAN and other significant and substantial transmission and switching/routing capacity allow it greater flexibility to bundle the various services provided over those network assets, as well as influencing the ability of competing bidders...” ²

• “… Evidence of such distortions includes a seeming mis-match between customer requirements and actual supply, inflated switching costs that contributes to a reluctance to churn between competing providers, and indicators that revenue shares may be trending towards Telstra and Optus…” ³

What Global Regulatory Experts Say:

• EU Commissioner Viviane Reding: “I believe the policy option of structural separation could answer many competition problems Europe’s telecom markets face today.”
  
  
• Bear Stearns I’National: “We think Structural separation would actually lead to a (positive) re-rating of the sector.”

Footnotes

PRIVACY POLICY