ACCC investigates Telstra over internet prices

Yesterday the Australian Competition and Consumer Commission launched an investigation into Telstra after they announced price changes for their broad-band, ADSL and dial-up internet services.

Telstra will offer contracted customers of the most popular dial-up service the Essential Plan lower rates than those customers choosing not to sign up with the provider for 12 months. Casual users will be charged $4 per month more than contracted users. And those customers wishing to terminate their contract will be hit with an exit fee.

The ACCC is concerned about the level of power Telstra has over the internet and phone markets, especially considering the lack of alternative broad-band internet service providers.

It seems as though Telstra is adopting the same approach for their internet customers as for their mobile phone customers – enticing customers into 12 month contracts with lower rates and other incentives.

Read our earlier story on the changing nature of the telecommunications industry.

The Daily Telegraph, p21, 12/1/02