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ACCC recommends new copper pricing

ACCC has fighting gloves on
By: Anthony Garreffa | Business, Financial & Legal News | Posted: Sep 17, 2010 10:04 am

The Australian Competition and Consumer Commission (ACCC) has recommended to Telstra to lower their wholesale pricing to their copper network. iiNet's chief regulatory officer, Steve Dalby doesn't seem to think it will get Telstra to play ball.




The ACCC recommends a price reduction in wholesale line rental (WLR) (the price an ISP pays to provide a line when not connected to their own infrastructure) on top of a recommendation to drop the local carriage service (LCS) pricing.


While the price drops for WLR and LCS are recommended from the ACCC's report, they don't recommend a change in the line sharing service (LSS) which let's a company supply ADSL services using their own equipment in Telstra exchanges. Also left out, is ULLS which is the supply of a service from a whole copper line, from the exchange to the home.


Dalby had the following to say in regards to the ACCC's report, "Telstra has never taken any notice of the pricing principles when setting its wholesale prices, and is not likely to do so on this occasion."


It will be a while before we see the waves from these reports crash upon the shores of ISP's wholesale costing - but with the moves in the market of the terabyte (or more) plans - it's starting to not really matter to the consumer, but to the ISP's.



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