Australia - broadband

Consumers to pay more for Telstra broadband: report

The report was commissioned by a group of Telstra's competitors.

A new report says consumers will pay more than 15 per cent more if Telstra wins the right to operate a national broadband network.

The research was conducted by the Centre for International Economics, but was commissioned by a group of Telstra's competitors.

Competitive Carriers Coalition executive director David Forman says the findings should be of concern to consumers.

"Telstra is a very, very powerful company. It has monopoly power, or market power right across the communications markets," he said.

"What Telstra wants to do is to retain that market power forever. It wants to build a next generation access network, a broadband network on the same kinds of terms and the same kinds of profits that it's always had in the past.

"We argue that's just not sustainable."

Co-author Kerry Barwise says Telstra's high profit targets would be an abuse of the company's position.

"This target's very high. This target for this additional asset, which will become the backbone of telecommunication services in Australia if it was built, this high rate of return definitely would be an abuse of its position," she said.

Telstra Wholesale's group managing director, Kate McKenzie, said the report "had no basis in fact" and was a "dishonest distortion".

"This is a completely bogus report that has been bought and paid for by a bunch of competitors who want one thing only - to stop the building of Australia's national broadband network and keep their current cosy arrangements," she said.