Telstra wants monopoly back, iiNet takes a beating

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In their AGM presentation (PDF) iiNet mention that Telstra have raised wholesale rates by 10-20%. On the 1500/256 DSL service which was previously $47 ex GST this equates to roughly $5-10 extra per month. I'd guesstimate this would add roughly $500k/month to their wholesale costs. Understandably iiNet have stated that this would have "significant short term financial impact" and the share price has certainly taken a beating sliding from about $2.60 before the AGM to $1.845 today. Ouch! :)

Primus, in an article in the AFR, indicated that Telstra had raised voice rentals from $24.60 to $28.10 per month.

Meanwhile, Telstra are making noises about building a FTTN (fibre-to-the-node) network which would replace much of the copper that stretches between exchange and the user. The point of this is to obsolete the DSLAMs currently being rolled out by the likes of Optus, iiNet, Primus, Internode and a host of other smaller ISPs. If the FTTN network were to be rolled out these ISPs would need to spread their gear out into each neighbourhood node and arrange backhaul from each node - its basically infeasible for anyone but Telstra. Amusingly enough Telstra is also gunning for assurance that they won't be forced to share their FTTN network, as if anyone could use it!

More details in The Australian - Optus threatens war over Telstra's fibre plans

And a good writeup by ZDNet - Banking on the ACCC

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This page contains a single entry by goosmurf published on December 1, 2005 8:51 PM.

iiNet temporarily stops regional signups was the previous entry in this blog.

Cityrail have drivers? For trains?! is the next entry in this blog.

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