Telstra has been throwing its weight around the Internet in Australia for long enough. Now the ACCC will be taking a closer look at the Internet peering, or interconnection, arrangements Telstra negotiates with other carriage and internet service providers (ISPs) which has led to smaller ISPs wearing unfair charges when their customers send email or surf the web.
Over the last few years, Telstra has chosen to do deals with larger ISPs to remove interconnectivity charges but continues to exploit its market domination with respect to smaller ISPs.
The ACCC described the situation like this:
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“There are some apparent curiosities with current interconnection arrangements. If I am connected to a smaller ISP and I send an email to my friend at one of the four larger ISPs, the larger ISP will generally charge my smaller ISP for sending the email. However, when my friend at the larger ISP sends me a return email, my smaller ISP will have to pay the larger ISP once again.” |
(Source: ACCC Press Release 21 February 2003)
In this case the larger ISP is often Telstra and it effectively determines interconnection arrangements. Where they deem a competitor big enough they may choose to negotiate, but where they don’t, they continue to exploit their market dominance to the detriment of smaller ISPs and ultimately, Internet users.
This inequitable treatment of smaller ISPs by Telstra is yet another instance where the Coalition has been unwilling to regulate Australia’s telecommunications monopoly provider.
The Coalition must act to ensure that fair competition rules apply to all parties, not just the big end of town.
Media contact: Adina Cirson – (02) 6277 3334 or the Electorate Office – 0418 488 295.
