ACCC gets tough with Telco companies
ACCC gets tough with Telco companies
The Australian Competition and Consumer Commission (ACCC) is conducting an investigation into Telstra after it reduced its retail prices for cable and ADSL broadband plans without any warning.
The ACCC has called for telecommunication companies to be more careful in sensitive markets and should inform the regulator of any major changes.
Telstra is in trouble for cutting its prices lower than what it charges its wholesale customers.
ACCC chairman, Mr Graeme Samuel said. "As I have told Telstra since - to advise the ACCC of a major change in what is clearly a sensitive market, on the day it happens, is not good enough. This is particularly so when the relevant market is one that the ACCC has previously signalled its interest in - and the clearest way possible - by issuing a competition notice.
"The ACCC's response to Telstra's price changes and their lack of notification should send a message to the industry - and this is a message I have provided to Telstra directly.
"If you are going to make major changes to your service offerings that have the potential to have anti-competitive impacts - you need to engage in a dialogue with the ACCC. If you don't then the ACCC will act quickly to stop competitive harm to the industry."
The ACCC has also been analysing broadband advertising by ISPs, in instances when companies claim to offer "unlimited" services. The watchdog has been comparing the advertised broadband speed with the actual download speed.
Samuel added: "Terms such as 'unlimited' have a powerful persuasive effect on consumers and the ACCC wants to ensure that consumers are not misled by claims that services are 'unlimited' when in fact there are limitations, such as time limits, download limits and excess download costs."
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