A PYMNTS Company

Australia: Telstra gets blow as court backs ACCC ruling

By  |  March 28, 2017

Telstra is considering its options after the telco suffered a blow in its bid to overturn a ruling handed down by the Australian Competition and Consumer Commission that forces it to cut the access price on its copper network.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The telco, which was yesterday ordered to cover the ACCC’s costs of the legal action, had initially pushed for a 7.2 per cent lift in access prices in 2015, citing growing costs associated with the migration of customers from the copper network to the National Broadband Network.

    With Telstra slated to collect $98 billion from Canberra to cover the cost of the migration, the telco’s rivals had accused the company of “double-dipping” and extracting even more value out of its copper.

    The competition regulator subsequently not only rejected Telstra’s argument but also stipulated a one-off 9.4 per cent drop in access prices, covering a period from November 1, 2015, until June 30, 2019.

    Telstra’s hopes for reprieve were dashed as Judge Lindsay Foster sided with the ACCC yesterday.

    Full Content: It Wire

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.