Optus beats Telstra in Aussie network stoush

Telstra has failed to have Optus blocked from accessing its copper networks in Australian metropolitan centres. Photo / Kenny Rodger

SYDNEY - Telstra Corporation has failed in a bid to exempt rival Optus from accessing its copper network in areas where Optus has its own cable network.

The Australian Competition Tribunal has knocked back Telstra's application for a review of a decision made by the tribunal in November to refuse Optus' exemption from access rights.

Telstra was seeking to have Optus restricted from regulated access to its network in metropolitan Sydney, Melbourne and Brisbane, where Optus has a Hybrid Fibre Coaxial (HFC) cable network.

In its submission to review the decision, Telstra argued exempting Optus would result in Optus upgrading its HFC network, and therefore creating a greater level of competition.

Optus, which is owned by Singapore Telecommunications, successfully argued exemption from regulated access would have a "chilling effect" on overall investment in infrastructure, as it may result in a loss of access to certain services.

"The chilling effect is real and is likely to lead to less than optimal levels of independent infrastructure investment by a firm currently enjoying regulated access to the relevant services," the tribunal said in its decision.

The Australian Competition and Consumer Commission (ACCC) has welcomed the outcome, saying a discriminatory access policy would not promote the long term interests of users.

"Telstra's exemption application focused too much on one competitor, rather than on benefiting consumers and competition generally," ACCC chairman Graeme Samuel said.

"The Australian Competition Tribunal's decision affirms that open and equivalent access for all parties is required for effective communications regulation."

- AAP