Optus sues Telstra over line rental

SYDNEY - Optus, Australia's second-biggest phone company and owned by SingTel, said it had launched legal action yesterday against rival Telstra over the top carrier's decision to raise wholesale line rentals.

Optus said the move by Telstra in December last year to raise wholesale line rental prices to A$30.36 from A$26.95, while leaving its most popular retail line rental price plans unchanged, was anti-competitive.

"This produces the absurd result that Optus is forced to pay Telstra a wholesale price which is A$3.41 more than the price at which Telstra sells the very same product in the retail market," said Optus director of corporate affairs Paul Fletcher.

Telstra said it would vigorously defend any action.

- REUTERS