New interconnect deal for Telstra and Optus

Following months of uncertainty, Telstra and Cable & Wireless Optus have re-negotiated interconnection arrangements between the two networks, the companies announced on Monday.

According to officials, an existing agreement between the two carriers expired in July this year.

While most details of the arrangement are confidential, Telstra officials told Network World Today the new contract provides slightly lower prices for Optus in return for an extended length of contract for Telstra.

The agreements cover originating and terminating access to Telstra's switched telephone and GSM (digital mobile) networks and intra- and inter-ACCA trunk rates and GSM terminating and AMPS (analogue mobile) resale rates.

According to officials, the revised price agreements are in line with Telstra's recent undertakings with the Australian Competition and Consumer Commission (ACCC) regarding Telstra's wholesale business.

"As we can make cost savings, we will bring costs down" for wholesale and retail competitors, officials said.

Although the agreement deals with Telstra's wholesale business, it is expected the lower prices will provide Optus with the opportunity to offer customers lower call rates.

According to Telstra officials, the telecommunications giant is expecting to conduct similar agreements with other carriers and service providers.

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More about Australian Competition and Consumer CommissionAustralian Competition and Consumer CommissionCable & WirelessOptusTelstra Corporation

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