ACCC rejects Telstra's $30 line rental hike

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.