Dan Warne18 December 2007, 5:24 AM
Telstra has accused Optus of having a 'lazy and underutilised' cable network and asked the ACCC to excuse it from its obligation to provide Optus with access to copper phone lines.
Telstra has accused Optus of having a 'lazy and underutilised' cable network and asked the ACCC to excuse it from its obligation to provide Optus with access to copper phone lines.
The crux of Telstra's argument is that Optus refuses to cable apartment blocks with HFC cable, instead preferring to use the cheaper option of accessing apartments via the unconditioned local loop -- Telstra's raw copper phone lines.
Recently, Optus announced it would no longer be providing phone services purchased from Telstra and resold by Optus. Instead, it would focus on using ULL phone lines, where the lines are physically disconnected from Telstra's equipment and connected directly to Optus equipment in telephone exchanges.
Telstra has bitterly fought its competitors getting cheap access to ULL phone lines for years. Recently, however, it lost its battle, and was forced to give access to ULL to other telcos for about $14 a month.
Telstra has produced a 92 page report for the Australian Competition and Consumer Commission outlining how cable networks around the world typically have a six per cent rate of unserviceable properties, while Optus has 40%. (Interestingly, the report also lists in detail all the exchanges that currently have Optus Direct coverage -- something Optus itself won't comment on.)
"Rather than using access to Telstra's unconditioned local loop (ULL) to augment its HFC coverage, SingTel Optus has deployed its ULLS infrastructure right over the top of its cable, covering almost 80 per cent of its HFC network," Telstra's Dr Tony Warren, Executive Director Regulatory, said.
Telstra has always provided cable network coverage via its HFC network to apartments and multi-dwelling units, proving that there's no real technical barrier to cabling those buildings.
"The reality is we're sick of Optus sponging off us. Sol has made this point on many occasions -- we just scratch our heads and wonder why. They've got this infrastructure that they're not using. It's like using a neighbour's car because it's cheaper, and that's basically exactly what's happening," said Telstra spokesman Jeremy Mitchell.
"This is a classic example of the regulatory system making it cheaper for our competitors to use our network than their own!" he said.
"As Telstra's exemption application has very little chance of success, this is an appropriate sort of media release to be putting out during the silly season," said an Optus spokesperson.
"This is a desperate last throw of the dice by Telstra to distract the ACCC as it is set to hand down its watershed ruling on ULLS prices.
"The ULLS ruling will finally open up last mile access to genuine competition. Optus has a clear business rule that HFC will be used (in preference to ULLS) to service customers wherever technically feasible."