A consortium of Australian ISPs has urged the ACCC to force Telstra to allow wholesale access to its ADSL2+ broadband infrastructure, allowing other ISPs to compete in the sector.
Three weeks ago Telstra announced that it would activate ADSL2+ broadband at more than 900 exchanges around the country.
The Internode-led group, which includes iinet, TCN and Westnet, purports that the Telstra move is anti-competitive because Telstra would not have to offer equivalent services wholesale, effectively stopping other ISPs from doing business in the area.
The group issued a nine-page letter to the ACCC, detailing the complaint.
"This is a serious problem, both for the broadband sector and for Australian consumers and businesses," Internode managing director Simon Hackett said.
"Telstra clearly has a substantial amount of power in the market for wholesale broadband services. We believe that Telstra's decision not to offer wholesale access to ADSL2+ services will lead to a substantial lessening of competition."
Telstra's strategy would have negative ramifications for broadband users as well as competing ISPs, Hackett said.
"By excluding competitors from wholesale access to its ADSL2+ services, Telstra can lure customers of other ISPs into two- or three-year contracts. This substantial lessening of competition will clearly have an adverse impact on consumers, both in terms of price and the range of services available to them in the long term."
If the ACCC agrees with the group's complaint, under the Trade Practices Act 1974 the commission has the power to penalise Telstra as much as $10 million for each offence, and a further $1 million each day the company refuses to comply.