Telstra Corporation Limited
(ASX:TLS) has been asked to trim wholesale prices charged to retail telcos accessing its fixed line copper network by the competition regulator.
The Australian Competition and Consumer Commission’s chairman Rod Sims says regulated access prices are crucial to maintaining competition in light of Telstra’s dominance of retail and wholesale fixed-line broadband services.
Mr Sims said the move will also provide investment incentives in the transition to the National Broadband Network.
Rival iiNet Limited
(ASX:IIN) warned the slight change would not necessarily translate into cheaper prices for consumers, after the drafted drop of 3.3 per cent fell below its expectation.
Global investment banker Goldman Sachs says the ACCC move will have an immaterial impact on its earnings estimates for Telstra.
Telstra generated a net profit of $1.6 billion in the first half of fiscal 2013.
