Telstra’s move to cut off competitor services in a Canberra exchange is yet another warning about the company’s true motive: to continue to bully competitors and stifle broadband competition in Australia.

Telstra is apparently seeking to cut customer connection lines which would strand competitor ISP’s existing DSLAM equipment which is used to deliver broadband services to customers. This would compel the customers of those ISPs to switch to Telstra’s service or force the ISPs to wholesale Telstra’s offering.

“It would be an extraordinary situation if Telstra can force customers to move off a service from a competitor to a Telstra offering,” Competitive Carriers’ Coalition executive director David Forman said.

“Can Telstra really be proposing to give customers no control or choice and reportedly, to be moved to an inferior service at a higher price? What’s more, does Telstra really think that it can give competitors only 15 weeks notice that they’re about to lose customers?

“The ISPs impacted by this move have been complaining to the ACCC about the potential for this to happen for years yet it has taken no decisive action to stop it.

“Now that it has an anti-competitive situation on its hands, the ACCC needs to immediately intervene and resolve this situation.

“Furthermore, this proves that only strong and decisive structural reform can resolve this kind of anti-competitive activity and that the Minister should have this at the forefront of his mind when he announces the National Broadband Network package in coming weeks.”

“The Senate enquiry into the NBN is hearing from Telstra today. It is hoped the enquiry pays heed to this development as it demonstrates what Telstra is really trying to achieve for competition and broadband services in Australia.”

Contact:

David Forman
Executive Director
CCC Inc
0438121114