I have today formally requested the Australian Competition and Consumer Commission to investigate Telstra for potential breaches of the Trade Practices Act in relation to ADSL connections. (click here to see letter)
Just a month ago whirlpool.net.au, an online broadband news organisation, revealed that Telstra wholesale rejected an ADSL broadband application from a customer of iiNet (a competing broadband service provider) on the grounds of poor line quality. Later the same customer was accepted when he applied through Bigpond, Telstra’s retail internet arm.
However, today it has been shown that this was not just a one-off case, and that Telstra has apparently been discriminating against independent ADSL internet suppliers in favour of Bigpond on several occasions.
Issues I have raised with the ACCC include:
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Reports that Telstra appears to have acted anti-competitively on at least thirteen occasions; |
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Telstra’s decision to use discretion with regard to the technical eligibility of customers applying for the ADSL broadband internet service; and |
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The rights of the individual Telstra customer whose ADSL broadband connection is to be disconnected after blowing the whistle. |
I have requested that the ACCC investigate this issue so that competition in the broadband internet market is not stifled through Telstra’s dominance, and that the long-term prospects of broadband take-up in Australia are facilitated.
The Minister for Information Technology, Senator Alston, has been mute on pressing broadband issues such as this, which is typical of the Coalition’s general policy silence on high-speed, broadband internet.
4 June 2003. Media contact: Jason Ives on (02) 6277 3334 or 0411 237 683
Letter to ACCC
Mr Ross Jones
Commissioner for Telecommunications
Aust CCC
PO Box 1199
Dickson ACT 2602
Fax: 02 6243 1122
Dear Mr Jones,
I am writing to bring to the attention of the Australian Competition and Consumer Commission what appears to be anti-competitive behaviour by Telstra which I believe is seriously and adversely affecting competition in Australia’s broadband market.
On 7 May 2003, an article was published on Whirlpool.net.au (attached, “Telstra denies favouring Bigpond in line testing”) that alleged that Telstra denied ADSL access to a would-be subscriber when applying through broadband supplier iiNet Ltd. At the time, Telstra cited poor line quality. The subscriber was later accepted as an ADSL subscriber by Telstra’s retail arm, Bigpond.
Telstra confirmed this occurrence in response to my questioning in the recent Senate Budget Estimates hearing on 26 May 2003 (transcript attached). Whilst conceding that this could be perceived to be evidence of anti-competitive conduct, Telstra claimed that this occurrence was attributable to human error.
I have since had brought to my attention through the Whirlpool web site, a further twelve people alleging that they experienced similar treatment. (attached) While one incident could be accounted for by human error, thirteen occurrences suggest that Telstra’s conduct ought to be investigated immediately.
I draw your attention to the transcript outlines how Telstra are able to use discretion with regard to the technical eligibility of customers applying for the ADSL service. I am concerned that this discretion can and has been applied to advantage Telstra’s retail ADSL service at the expense of competitors at the ADSL wholesale level. I understand this would constitute anti-competitive behaviour under the relevant sections of the Trade Practices Act as Telstra is treating wholesale and retail ADSL connections differently, to Telstra’s competitive advantage.
This is obviously not acceptable behaviour and I respectfully request that this matter be investigated immediately.
Another related concern is that the customer who made the original complaint was subsequently served with an ADSL disconnection notice four days after the Senate Estimates Committee Hearing (see attached article “Telstra Terminates ADSL whistleblowers connection”). Can you please advise me of this customer’s rights under the Trade Practices Act.
Please don’t hesitate to contact my office if there is any way I can be of assistance.
Yours sincerely,
Senator Kate Lundy
3 June 2003
