The Australian competition watchdog, the Australian Competition and Consumer Commission (ACCC) has rejected Australian telco's application for a $30 monthly charge to allow competitors access in city areas. ACCC chief Graeme Samuel yesterday said the regulator did not find Telstra's proposed charge ''reasonable''.

The ACCC concluded that the telco's proposed price would not promote competition in the broadband and telephony markets and would discourage investment in telecommunications infrastructure.

The ACCC order made particular reference to Telstra's August 2006 undertaking in which the company had proposed a uniform $30 per month price for all areas in Australia. The ACCC observed that it was surprising that Telstra submitted an undertaking proposing the same price metropolitan areas – a price which was significantly higher than that which had been rejected in 2006.

This is for the third time that the company has had the watchdog reject its application

According to a Telstra spokesman the decision was another demonstration of the need for a lasting resolution on the copper network cost issue to provide certainty for both network builders and access seekers.

He said Telstra was ready to provide its access for a review and called upon ACCC to follow suit with its cost model.

The ACCC can only accept or reject prices proposed in an undertaking. Additionally, it can arbitrate in specific disputes when potential users of the service will not accept the prices the company wants to charge.

Telstra's pricing is based on its TEA pricing model which has been the subject of much controversy between the regulator and Telstra's competitor and Telstra and various economics consultants.

Telestra's pricing troubles with the watchdog extend back more than four-years and a the company submitted four applications to the ACCC since 2004 out of which one was withdrawn and other three rejected.

Telstra has submitted four applications to the ACCC since 2004, with one withdrawn and, including yesterday's decision, three rejected.

The move comes as communications minister, Stephen Conroy indicated ruled out big salaries at the as-yet unnamed company to be established to build its $43 billion national broadband network.

He said there had already been enormous interest expressed in the board and chief executive roles in the company that would build the NBN.

Replying to queries on whether those positions would attract salaries comparable to similar jobs at Telstra he said the world environment had changed substantially. He said the company would be providing Australia's most significant infrastructure project in its history and it would be a reasonable remuneration.