TELSTRA SLAMMED FOR ABUSING MARKET POWER

Cable & Wireless Optus today attacked Telstra for letting down mobile users in regional Australia.

Stephen Wilks, Cable & Wireless Optus' Director, Regulatory & Public Affairs, said that Telstra was denying carriers timely wholesale access to the new CDMA (Code Division Multiple Access) mobile network.

"By denying Cable & Wireless Optus reasonable and timely access to the new CDMA network, Telstra is setting itself up as a monopoly supper of services to people in the bush. The result will be no competition and higher prices", Mr Wilks said.

"The latest Productivity Commission study of telecommunications prices around the world clearly demonstrates that lack of competition leads to higher prices.

"It is unacceptable for the country's largest telephony company to abuse its market power in this way. Cable & Wireless Optus had access to the existing analogue network and as a result there was fair competition in the bush. People had real options", Mr Wilks said.

Mr Wilks said that Telstra and Cable & Wireless had had discussions at Chief Executive level and Frank Blount had given assurances that Cable & Wireless would have wholesale access to the new CDMA network.

"Most recently Doug Campbell, (Telstra's Group Managing Director, Carrier Services Group) confirmed that wholesale access would be made available. These assurances were given when Cable & Wireless Optus gave up its right to compensation for changes in the timing of the analogue network closure. We agreed to the changes in the belief that the new network, partially funded by Cable & Wireless Optus through our earlier payments for analogue resale, would lead to better access and a cheaper product for people in rural and regional Australia.

"Unfortunately Telstra is now proposing to offer CDMA as a monopoly product and it will only provide other carriers with wholesale access at a later date.

"Telstra must not be allowed to stall here. By not allowing Cable & Wireless Optus timely access to the network as it is rolled out, it will be able to sign customers up to mobile plans at high prices and effectively block competition. This is outrageous", Mr Wilks said.

For more information:
Stephen Woodhill
Cable & Wireless Optus
Phone: 02 9342 7850
Mobile: 0413 318 455