back to article Telstra offers separation proposal

Australia’s incumbent carrier, Telstra, has submitted its proposed structural separation and migration plans to competition regulator, the Australian Competition and Consumer Commission (ACCC), ahead of the rollout of the country’s National Broadband Network (NBN). The ACCC will now have the job of fielding submissions from …


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Reference prices

Admittedly, I didn't read the linked article/document, but there really is only one way to do this and that is to split the business into two, wholesale and retail (much like BT). The retail (end-user) part of Telstra buys its services from wholesale at the same price as any other ISP can. No cross-subsidy, no special deals. Regulate it and strictly enforce it. Reference prices smells like bullshit.

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So let me get this straight...

'will be priced according to Telstra’s retail prices “less retailing costs”.'

So Telstra is offering:

Market Wholesale Price = Telstra Retail Price - Telstra Retailing Costs

which sounds like this means:

Market Wholesale Price = Telstra Wholesale Costs + Telstra Wholesale Profit Margin + Telstra Retail Profit Margin

Unless I'm mistaken (and I could be), Telstra is just adding their Retail margin onto their internal Wholesale price and offering that as their external Wholesale Price.

Sounds like just another way to maintain their current pricing disparity allowing them to continue to favour their own retail arm.

Business as usual then.

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