ACCC Rules Telstra Must Reduce Wholesale Prices for ADSL, Turnbull Dissapointed

Diji1 on 29/03/2017 - 11:14

The Federal court just made a ruling upholding the ACCC's decision to lower the wholesale price of fixed line networks (ADSL).

The ACCC stated that it was "unfair" for ADSL customers to be raped compensating Telstra for their copper network that doesn't work anymore due to it's age. Despite the fact that it does not work anymore NBN Co paid Telstra 11 billion dollars for the network so they have a point - Telstra is already making a killing more than adequately compensated by selling infrastructure that does not work anymore.

https://www.theregister.co.uk/2017/03/28/accc_vs_telstra/

But just in case you thought that wasn't enough compensation Telstra won the maintenance contract from NBN Co to maintain the junk asset they just sold to NBN Co. Given that it no longer works due to age that is one sweet contract that is going to involve replacing large parts of the network so Telstra really is massively enriching itself at your expense being adequately compensated.

https://www.theregister.co.uk/2015/12/20/telstra_wins_copper…

This decision will doubtless dissapoint Telstra's most valuable employee Prime Minister Malcom Turnbull - and you too if you still believe the moronic stream of bullshit delivered in a suave, elegant manner ("innovation, web 2.0, digital transformation, <meaningless buzzword>!").

Because according to Turnbullshit, lower ADSL prices are BAD for consumers.

Malcom Turnbull believed this so much that he took the unprecedented step of intervening in the ACCC enquiry not once but two times by writing them a letter explaining that lower prices are bad for consumer because Telstra will make less money. So it seems that lower prices and competition are wonderful except when Australia's largest, most expensive telco is getting overcompensated - in that case voters have to pay the over compensation.

http://www.theregister.co.uk/2014/07/24/lower_prices_are_bad…

Speaking of voters are you going to vote in Telstra's most valuable employee next election to continue to enrichen Australia's largest businesses at your expense? All of this happened when he was PM or Communications Minister.

Please do not.

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Comments

  • spackbace on 29/03/2017 - 11:42
    +7

    Damn gummints again

  • Clear on 29/03/2017 - 11:48
    +1

    Meh it's only ADSL. I've had FTTP NBN for many many years now :)

  • [Deactivated] on 29/03/2017 - 11:52
    +1

    hopefully this makes FTTN cheaper.

  • pjetson on 29/03/2017 - 11:58

    If NBN now own the fixed line copper infrastructure, why does Telstra get fees for it? Perhaps the fees are for exchange and network access, not for the copper lines.

    Are you sure you're ranting about the right thing? :-)

    • Thrawn on 29/03/2017 - 13:25

      NBN doesn't own all of it immediately.. its a progressive transfer.

      There'd be many more years yet before all of legacy DSL services is transferred off Telstra. The likely reasons Turnbull is against it:

      1. Makes DSL services retail prices even lower relative to NBN. Politically looks bad
      2. Lower DSL prices makes it even harder to get customers off it before the final shutdown period. This makes the migration processes even more difficult and no doubt NBN carries the cost.
      3. Its pretty likely that Telstra wrote in their NBN deal (which Rudd signed) that NBN pays for Telstra's losses during the switchover period. Telstra is not stupid.. they know that ACCC is a big risk and they had a buyer desperate for access to its ducts (which NBN uses for both FTTH and FTTN)
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