Talking Telstra wholesale pricing on 1395 FIVEaa

FIVEaa logoTelstra is Australia’s biggest telco, and owner of the vast majority of the copper customer access network (CAN), the so called “last mile” — and it wants to raise its wholesale prices, charging other telcos 7.2% more.

“The move would affect almost every Australian with a phone line or an internet connection, because Telstra owns most of the copper phone lines that other telcos depend on to service their customers,” reported ABC News.

“The company leases about 4 million line services to rivals and has not raised wholesale prices since 2011.”

On Wednesday I spoke about the distinction between retail and wholesale telecommunications providers, and whether a 7.2% rise is reasonable, with Will Goodings on 1395 FIVEaa — after independent Senator Nick Xenophon has given his views.

Xenophon thought the rise was unreasonable, because Telstra had “gotten $11 billion” from NBN Co. I disagreed on both counts.

For reference, here’s the current Telstra Wholesale rate card (PDF).

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