Perth-based internet service provider, EFTel Ltd, has won an interim determination for cost relief from the Australian Competition and Consumer Commission regarding its line sharing access dispute with Telstra Corporation Ltd.
The decision was handed down by ACCC chairman Graeme Samuel and ACCC commissioner John Martin last Friday.
Telstra had attempted to charge EFTel $9 per month per service for access to its Line Sharing Service (LSS). EFTel needs access to the LSS for delivery of its new high speed BroadbandNext network that was announced on November 1, 2007.
Under the interim determination, that charge will be $2.50. The ACCC also gave an interim determination in EFTel's favour on a raft of other LSS related charges.
EFTel chief executive Simon Ehrenfeld said that obtaining the interim determination was essential given the imminence of BroadbandNext.
"This decision is an excellent outcome for EFTel. This will deliver substantial bottom line improvements in the next financial year and beyond," he said.
"Regardless of the decision, we remain a large and growing reseller of Telstra's wholesale services, and we value our relationship with them at all times. This decision simply helps to correct a terrible profit imbalance we have had with them."
