TOCPCs – The Elite Geeks Blog

Here’s a recent comment from Now We Are Talking:

After all the info that is available, I can’t believe that people still want to blame Telstra for either the lack of speed (download limits etc)and/or the costs of their broadband. Telstra has to sell to other ISP’s at below their cost, because the ACCC said so. I know my ISP (iiNet) pays $3.20 a month to Telstra for my broadband service, but they charge me $69.95. I am happy with the download limit I get (16+16 gig)and this is on ADSL..I am not able to get ADSL2. I don’t blame Telstra for not being able to get ADSL2…why doesn’t my ISP put some of their profits ($66.75 p/m) into supplying that service. Why should Telstra have to supply it? It’s idiotic enough that if there is a fault with my line my ISP just emails Telstra to fix it, …at their cost…not my ISP’s.

So Telstra is in a no win situation and people still whinge about their prices. If you don’t like the price…go elsewhere. I can’t see Holden producing a car for $15,000, and being told that they had to sell it to Ford for $7,000, who in turn resold it to the public for $12,000, could you? I think Holden would try every legal avenue they could to stop it, or not produce anymore updated models until the law was changed. Come on now…You want Telstra to update and spend money on Aussie Broadband, when they have to virtually give it away to other companies who aren’t spending in the first place, only leaching off them. Somehow it just doesn’t seem fair….but then again…that’s only my opinion.

And my response:

Leanne.

I would demand proof of the said “below cost service provision”.

Because, if the service was truly below cost, how come Telstra Wholesale are so profitable?

You don’t become profitable selling below cost.