Telstra fined $19m for blocking telco rivals

TELSTRA found guilty of blocking competitor access to telephone exchanges

TELSTRA has been slapped with an $18.5 million fine for blocking its rivals from installing broadband equipment at its telephone exchanges.

An 18-month long federal court case came to its conclusion this morning after Justice John Middleton found Telstra contravened the Trade Practices Act and its carrier licence conditions on 27 occasions between July 2006 and April 2008, reports The Australian.

The Australian Competition and Consumer Commission was seeking a fine of $34m to be imposed on the telco giant, alleging Telstra’s senior management ranks had knowingly conspired to deny its wholesale customers such as Optus and iiNet access to install equipment in seven lucrative metropolitan telephony exchanges.

Under standard obligations, Telstra is legally required to allow access to its telephone exchanges so that competitors can install equipment to provide new voice and broadband offerings for customers.

Justice Middleton found that no such conspiracy had existed.

“I reject any suggestion that the contraventions occurred as a result of any implicit or express direction from the then chief executive of Telstra to all Telstra employees to make access to competitors difficult,” Justice Middleton said in his judgement.

Despite Telstra's penalty the telco's rivals were not entirely pleased with the outcome and reiterated the need for the government to pass legislation aimed at curbing the telco's market dominance.

"This is an example of anti-competitive behaviour from Telstra that the Government’s reform package is designed to stop at its source," Optus director of Government and Corporate Affairs Maha Krishnapillai said.

"Telstra has a very real ability to act unfairly under the present regulatory system, however the damage is done long before Telstra faces any penalties for its actions."

Read the full story at The Australian.