ACCC lobbied to let Foxtel compete with Telstra

Company News

The Australian Competition and Consumer Commission has been lobbied by telecommunication groups to let Foxtel sell bundled services in competition to its largest shareholder, Telstra (ASX:TLS), in light of its imminent merger with Austar United Communications Ltd (ASX:AUN).

Currently, Foxtel has a deal with Telstra that prevents it from offering packages with pay television, broadband and voice services that could rival similar Telstra products. 

In the first half of its 2011 financial year, Telstra posted a net profit of $1.2 billion.