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Telstra considers access rate hike for rivals
22 April 2010
Telstra is planning to increase the price it charges rivals for wholesale access to its local loop
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Telstra
wholesale
local loop
AAPT
Macquarie Telecom
SingTel
Optus
iiNet
Australia’s Telstra is planning to increase rates it charges competitors for access to its wholesale fixed line services. The company has issued new wholesale contract negotiation terms to its competitors, detailing the planned 20% increase.
The change may raise the monthly wholesale telephone line rental from about $24 to $31 a month. Telstra’s competitors, such as AAPT, Macquarie Telecom, SingTel’s Optus and iiNet, may resist the change. The companies use the network to provide fixed voice and broadband services to consumers.
The proposed amendment is subject to negotiations with each of Telstra’s wholesale customers.
The increase is in line with pricing policy set by the Australian Competition & Consumer Commission in December. The policy is in place until the end of this year while the government reviews prices Telstra charges for network access.
Access to Telstra’s copper network is likely to continue in high demand over the next eight years as the government builds its $43 billion national broadband network. GTB