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Telstra is under pressure to lower wholesale prices for fixed broadband services as the competition watchdog turns its tables on its 2008 decision not to regulate wholesale services.

Telstra is under pressure to lower wholesale prices for fixed broadband services as the competition watchdog turns its tables on its 2008 decision not to regulate wholesale services.
The Australian Competition and Consumer Commission (ACCC) says that the broadband market has changed and regional customers lack a competitive ADSL2+ broadband service because Telstra has been freezing other carriers out of the market.
Telstra claims, however, that the ACCC backflip creates further uncertainty for the industry and discourages investment. But the ACCC says it may force the issue. 
In an open letter to telco companies, it says it could force Telstra’s fixed-line broadband charges lower and increase rural and regional competition, along with tighter regulation of Telstra’s ADSL broadband services. 
In 2008 the ACCC made a decision that there was no compelling case to regulate third-party access to Telstra’s ADSL services. 
But it now says it is considering overturning that decision to allow it to set prices and terms that Telstra must offer competitors for access to its exchanges.
The move was prompted by complaints from ISPs including Internode and iiNet, who have been concerned that Telstra’s retail division had made price cuts that were not matched in its wholesale division, and that these cuts were squeezing prices. 
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