iiNet set for $8.8m Telstra windfall

IINET is set for a much bigger windfall from Telstra after the Australian Competition and Consumer Commission last week advised the Perth-based ISP that the final price it was likely to force Telstra to on-sell its wholesale broadband service would be lower than originally estimated. The ACCC has set a $2.50 per service per month charge in a draft final determination, 70 cents less than the $3.20 it flagged it was likely to impose on Telstra in December. Telstra is currently charging iiNet $9 per service per month. iiNet said the $2.50 charge was applicable from November 28 2005 and that Telstra would have to reimburse the company $8.8 million. iiNet said the $2.50 figure was at this stage in draft determination and was subject to 28 days’ consultation between parties before the ACCC would make its final determination. iiNet recently made two major announcements regarding new business initiatives. Last week, it announced it will provide broadband for 3G mobile phone operator 3 Mobile’s X-Series service, which will enable customers to make calls using voice over internet protocols through Skype. The deal allows 3 Mobile users to access their personal digital media files including pictures, music, videos, webcams and television from their home computer. The following day, iiNet said it had signed an agreement with Fairfax Media Ltd’s online subsidiary and Singapore-based Anytime Ltd to act as the ISP partner for the company’s video-on-demand service. - Julie-anne Sprague

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