Telstra
A man and power lines are reflected in a Telstra poster adorning a public telephone in Sydney, Australia, in this August 13, 2015 file photo. Reuters/David Gray/File Photo

Because Telstra has invested $3 billion over the next three years on its network to win back customers who left due to the frequent outages in its broadband and mobile services, the company is not in favour of a proposal from the competition regulator. The Australian Competition and Consumer Commission (ACCC) opened an inquiry on Monday over forcing Telstra to allow its competitors to use its network in regional and remote areas.

By declaring domestic mobile roaming services, it would end the dominance of Telstra in which residents of these areas are forced to buy Telstra services because the other telecom companies, such as Optus and Vodafone, had not build its network in the area.

Dr Tony Warren, executive of Telstra Group’s Corporate Affairs, says, “Declaring mobile roaming would stop coverage being a differentiator in the Australian market and therefore, remove the key rationale for investment in regional Australia for all operators.” He blames the lack of choice in regional Australia to its competitors not investing in networks.

Rod Sims, ACCC chairman, points out that consumers are increasing heavily their reliance on mobile services, and some groups have raised the issue of coverage and lack of choice in some regional areas. Although the ACCC had previously considered mobile roaming in regional areas in inquiries it made in 1998 and 2005, it has decided against regulating an access service.

However, Sims says, “A lot has changed since 2005. We do think it’s time we look at the issue again in detail, and examine some of these key matters, including consumer demand, network investment, and barriers to competition,” quotes The Australian.

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Source: Telstra

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