Australian consumers are missing out on high-speed broadband services as Telstra protects its stake in Foxtel.
Telstra’s ownership of the copper network and its 50% stake in Foxtel has contributed to its decision to artificially limit the speed of ADSL “broadband” services, a Senate Committee heard today.
In a startling revelation, Dr Paul Brooks from the Australian Telecommunications Users Group described how Telstra has deliberately limited ADSL speeds to 1.5 Megabits per second (Mbps) to ensure video services could not be offered by competitors to Foxtel.
Telstra has made a commercial decision to limit the potential of broadband in Australia to protect and preserve the revenues and market share of its pay-TV interests. All Australians are losing out.
Telstra’s decision to limit the speeds of its ADSL product also applies to companies that re-sell ADSL services over Telstra’s copper phone network. Without this unnecessary limitation, ADSL could be provided over five times as fast as the existing maximum, at 8 Mbps.
This confirms the ACCC’s conclusion that Telstra is guilty of inhibiting broadband services in Australia, in an effort to protect their own profits.
This is a disgrace, and the Howard Government’s broadband competition policy negligence is allowing it to happen.
Media contact: Jason Ives – (02) 6277 3334 or 0411 237 683
