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Comms Tsar Backs Telstra On Copper Deal Price Cut

Comms Tsar Backs Telstra On Copper Deal Price CutLate last month the ACCC issued a new draft
determination on pricing for the declared fixed-line services, revealing it
wanted to lump Telstra with a 9.6 percent drop in wholesale fixed-line prices,
compared to the 0.7 percent drop the Communications Department had previously
proposed.

Telstra has argued for a 7.2 percent increase in the charges to account for
rising costs resulting from users churning off its network and onto the NBN.

But in a submission to the ACCC, Comms “encouraged” the ACCC to
revisit its decision, given the impact it could have on the sector.

Communications secretary Drew Clarke said the decision would affect price
stability in the telco industry and negatively impact the transition to the
NBN.

“The department is concerned that the proposed price decrease for
fixed-line services will discourage migration through the migration window and
could lead to a significant number of customers remaining on the old network in
the lead-up to the disconnection date,” he said.