Australian competition regulator the ACCC has made a draft decision to continue regulating access to Telstra’s wholesale ADSL network for a further five years.
Former government monopoly Telstra is required to provide access to its ADSL network to competitors due to its dominant position in both the wholesale and retail ADSL markets. When a commercial agreement cannot be reached, Telstra must provide access at regulated prices.
The ACCC had been investigating whether regulated access was still necessary given the progress of the rollout of the national broadband network (NBN).
“Telstra retains its dominant position in both the wholesale and retail markets for the supply of ADSL fixed-line broadband services on a national level,” ACCC commissioner Cristina Cifuentes said.
“Continuing regulation will ensure network providers continue to have access to Telstra’s copper network at reasonable prices. This will encourage them to continue competing in the retail market to develop and offer different ADSL broadband products to meet the needs of customers as they prepare to shift to the NBN.”
A final decision on the matter is expected in early 2017, before the current access declaration expires.