Telstra to halve interconnect charges

Telstra must halve its current interconnect charges according to a draft decision handed down by the Australian Competition and Consumer Commission (ACCC) yesterday.

Competitors in the industry are obviously relieved by the decision and are anticipating dramatic growth in the industry.

Primus Telecom's general manager of network planning and interconnect Roger Nicoll believes that the ruling will encourage other telecommunications companies to take advantage of Telstra's network, and spur the industry on "to take on the industry's most powerful player".

Optus is also anticipating a more competitive industry and will eventually lower costs to the consumer as the organisation realises savings on interconnect fees.

However, both companies are maintaining caution until the recommendations are formally adopted by the ACCC to reduce Telstra's prices so that they will be more in line with world's best practice.

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More about Australian Competition and Consumer CommissionAustralian Competition and Consumer CommissionOptusPrimus AustraliaTelstra Corporation

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