Good news for MTU which will improve their competitive positioning vs Telstra, from 'Business Day' today.
As ACCC delivers blow to Telstra, smaller rivals win
Wednesday's draft decision from the ACCC on the prices Telstra can charge the likes of Optus and iinet for the use of its copper infrastructure will be a blow to the telco giant.
While the $11 billion deal struck by Telstra with the National Broadband Network and the Federal Government will go down in history as one that reaches new heights in generosity, the competition regulator could likely remove some of that commercial gloss by reducing the price Telstra is able to charge its retail competitors for using its copper network by 12 per cent in real terms over the next four years.
Wednesday's draft decision from the ACCC on the prices Telstra can charge the likes of Optus and iinet for the use of its copper infrastructure will be a blow to the telco giant, which was looking to increase the cost to wholesale access-seekers by a one-off 7.2 per cent.
The ACCC sets these prices with reference to the historical cost to Telstra building and running the network.
But the landscape has been radically changed with the rollout of the National Broadband Network resulting in parts of the copper network and its equipment now being underutilised or decommissioned.
The regulator has decided that Telstra's wholesale customers (its retail competitors) should not bear this cost.
"Access seekers will only pay for the assets needed to supply them, and not for any under-utilisation caused by the NBN," ACCC chairman Rod Sims said on Wednesday..
While the pricing decision makes no direct reference to the fact that Telstra is already being compensated billions of dollars by the NBN for the loss of customers , the net effect is the same.