Telstra denies it has cut access costs to its Internet services after it lost the fight to take over the country's second-largest ISP, OzEmail.
Telstra has slashed the cost of Big Pond Internet access for its dialup and broadband services, in what it said was a response to customer demand.
The Big Pond Home service will be reduced by 20 per cent starting this Saturday. The cost of broadband access via Big Pond Advance has been reduced and a flat rate plan will be available in a similar billing system to that which was introduced by broadband competitor Optus@Home late last year. In addition, the Big Pond business offering will be reduced by 25 per cent.
Telstra's rural customers will also receive "huge benefits", the company said. Internet access for rural clients on the Big Pond Home Rural plan will be reduced by 40 per cent.
In announcing the reductions, managing director of Telstra's Online Services, John Rolland, said the big winners would be the company's customers.
Rolland denied claims that the price reductions were a reaction to the recent announcement that ISP eisa would buy OzEmail, thereby scuttling the telco's plans of taking over OzEmail itself.