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Advising on major deals in the technology sector March 21, 2017

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Maddocks advises Optus in copper network access matter

Tuesday 28 March 2017

Maddocks has advised telecommunications leader Optus in its successful defence against attempts by Telstra to charge it and other telecommunications companies a higher rate for access to the Telstra copper network.

In a significant win for consumers, the Federal Court today confirmed an earlier decision by the Australian Competition and Consumer Commission that Telstra would need to lower the access price paid by rival telcos to access Telstra’s copper network by 9.4 percent.

The Maddocks team on the matter was led by partners Brendan Coady and Norman Lucas.

Brendan said that the ACCC’s original decision hinged on how Telstra was able to recoup costs associated with the rollout of the National Broadband Network.

‘Telstra argued that the unit costs for maintaining the network would increase as less people would be using its network as they migrated to the NBN. This meant that Telstra lost the opportunity to exploit certain economies of scale,’ Brendan said.

‘The ACCC determined – and the Federal Court today has confirmed – that Telstra had the opportunity to be compensated for these costs during its commercial negotiations with NBN Co. and that these costs should not be passed on to other telcos and, ultimately, consumers.’

Editor note:

Maddocks is a proudly independent Australian law firm that works closely with corporations, businesses and governments throughout Australia and internationally. We advise national and international clients across education, government, infrastructure, healthcare, professional services and technology, from our Canberra, Melbourne and Sydney offices.

For more information, or to arrange an interview, please contact:

Jason Silverii
Communications Manager
Tel: 3 9258 3509
Mobile: 0407 618 058
jason.silverii@maddocks.com.au

Tuesday 28 March 2017

Maddocks has advised telecommunications leader Optus in its successful defence against attempts by Telstra to charge it and other telecommunications companies a higher rate for access to the Telstra copper network.

In a significant win for consumers, the Federal Court today confirmed an earlier decision by the Australian Competition and Consumer Commission that Telstra would need to lower the access price paid by rival telcos to access Telstra’s copper network by 9.4 percent.

The Maddocks team on the matter was led by partners Brendan Coady and Norman Lucas.

Brendan said that the ACCC’s original decision hinged on how Telstra was able to recoup costs associated with the rollout of the National Broadband Network.

‘Telstra argued that the unit costs for maintaining the network would increase as less people would be using its network as they migrated to the NBN. This meant that Telstra lost the opportunity to exploit certain economies of scale,’ Brendan said.

‘The ACCC determined – and the Federal Court today has confirmed – that Telstra had the opportunity to be compensated for these costs during its commercial negotiations with NBN Co. and that these costs should not be passed on to other telcos and, ultimately, consumers.’

Editor note:

Maddocks is a proudly independent Australian law firm that works closely with corporations, businesses and governments throughout Australia and internationally. We advise national and international clients across education, government, infrastructure, healthcare, professional services and technology, from our Canberra, Melbourne and Sydney offices.

For more information, or to arrange an interview, please contact:

Jason Silverii
Communications Manager
Tel: 3 9258 3509
Mobile: 0407 618 058
jason.silverii@maddocks.com.au