A plan to allow Foxtel’s new internet television service to be only available only to Telstra's broadband customers has come under fire from rival Optus and the competition watchdog.
Foxtel has made an application to the Australian Competition and Consumer Commission to allow the proposal to proceed.
The ACCC will review whether Foxtel can supply internet TV through its iQ set-top boxes solely on the condition that users connect through Telstra BigPond.
The Australian newspaper reports that negotiations between the two companies and the ACCC have being going on for the past month.
In its submission to the ACCC, Foxtel said Telstra has agreed to waive certain charges if the agreement was of an exclusive nature.
The Australian Financial Review also reports that rival Optus is fuming over the plan and argues that the proposal shows that Telstra should be forced to sell its 50% stake in Foxtel - which is a matter already proposed by the federal government’s reform of the telecommunications sector.
Telstra’s net profit in the financial year to June 30 2009 was just over $4 billion.
