Telstra Holding Australia Back says ACCC
Telstra Holding Australia Back says ACCC
August 22, 2007: Telstra could simply ‘flick the switch’ to light up areas without ADSL2 but it won’t do it according to Michael Cosgrave, Group manager Communications, Australian Competition and Consumer Commission (ACCC)
With the broadband debate heating up it’s making what existing services we do have increasingly important. Cosgrave claims that Telstra is holding Australia back by not ‘flicking the switch’ and lighting up ADSL2 for those who don’t already have it.
The switch Cosgrave is referring to is turning on ADSL2 capability in telephone exchanges where the technology is already in place. Telstra could be offering the service in those locations today but it seems “uninterested in offering ADSL2 services unless a competitor has already started offering it in that exchange” Cosgrave said. For competitors this means installing their own expensive equipment into the exchange in order to offer ADSL2 services.
According to Cosgrave over 50% of homes currently have access to ADSL2 services, a figure which could rise dramatically should Telstra ever flick the switch. Telstra’s reluctance to turn on ADSL2 services in exchanges that have the technology can be attributed to the major revenues it can earn if the only available broadband on an exchange is ADSL1 services. ADSL2 services are much faster and often cheaper then the out of date ADSL1 offerings.
Telstra has asked the federal courts to review the ACCC’s methods of process, a move which has been the latest in a series of clashes between the industry leader and the independent regulator. The ACCC is confident about their processes and Cosgrave references their past history of challenges as proof that they will pass this latest test unscathed.