OPTUS COMMENT ON ACCC DECISION TO WITHDRAW COMPETITION NOTICE

Paul Fletcher, Director, Corporate and Regulatory Affairs, Optus said:

"In December 2005 Telstra exercised its monopoly power by hiking wholesale line rental prices from $24.50 to $27.60 - while making no change to most of its retail line rental prices.

"Over the last 15 months the ACCC has taken a vigorous and proactive approach in response. It issued a Competition Notice in April 2006. In July 2006 it declared wholesale line rental, and on 29 January 2007 it set a price of $23.12 - well below Telstra's extortionate $27.60.

"The price setting process has further to go, as we would expect the ACCC to backdate its pricing decision to 1 August 2006 when it makes a final determination.

"The ACCC's strong response supports Optus' view that Telstra's conduct was blatantly anticompetitive.

"Optus separately commenced legal action against Telstra in the Federal Court, based on both the Competition Notice and section 46 of the Trade Practices Act. We are continuing to pursue that case vigorously and remain free to do so notwithstanding the ACCC's decision to finalise the term of the Competition Notice to the period April 2006 - March 2007.

"Optus believes this episode has once again demonstrated the value of the complementary tools in the ACCC's toolkit - the power to issue a Competition Notice under Part XIB of the Act, and the power to set prices under Part XIC of the Act."

Media contact:
Melissa Favero
Optus Corporate Affairs
Tel: (02) 9342 5030