Telstra to reduce wholesale ISP prices

Telstra announced on Thursday that it would reduce prices for its ADSL wholesale customers at a rate lower than the cut-price $29.95 retail broadband access deal it launched in mid-February.
 
For the past week, the big telco has come under fire from competing ISPs who buy bandwidth from the company, claiming they couldn't match the price at retail level.
 
The ACCC also this week issued a warning to Telstra, expressing its concern that the retail price drop was not matched by a drop in wholesale bandwidth prices.
 
In a statement, Telstra said it would pass savings on to regional wholesale ISP customers by reducing its wholesale rates for broadband access in non-metropolitan areas. 'Telstra believes that the overall margin that previously existed will apply when the wholesale price changes take affect,' said Bruce Akhurst, group MD at Telstra Broadband.
 
Akhurst claimed that wholesale discounts had 'been in trained since the company announced retail price reductions ten days ago.' The changes will take effect from today.
 
He claimed Telstra welcomed the ACCC's 'engagement' to ensure that these reduced prices, which align Telstra's retail prices with prevailing industry levels, do not harm competition in the industry.