Regulator deals another blow to Telstra

SYDNEY - Australia's competition regulator has rejected another set of prices Telstra wants to charge rivals to use its network, a ruling set to cause more friction as the Government weighs selling its stake in the top phone company.

The regulator said the connection and disconnection charges Telstra wants to charge rivals, including SingTel's Optus, to use its so-called Line Sharing Service (LSS) were "well above" the appropriate costs for the service.

LSS allows Telstra's competitors to use its basic copper wires to provide broadband to end users while Telstra provides voice services.

A public spat between Telstra and the Government over regulations has helped push Telstra shares down about 25 per cent since Sol Trujillo took over as chief executive on July 1, wiping more than A$8 billion ($9.44 billion) off the value of the Government's 51.8 per cent stake in the company.

- REUTERS