ISPs say Telstra is obstructing the migration of customers from Telstra DSLAMs to competing DSLAMs that offer faster speeds and lower prices.

iiNet and Internode are leading the charge, as they attempt to move thousands of customers off Telstra's wholesale network and onto their own infrastructure. However, Telstra forces them to use its own technicians to do the work, and puzzling delays and stunningly high costs are stymying the process.

Telstra claims the process isn't easy because it involves disconnecting a physical wire from its DSLAM and connecting it to the competitor's DSLAM.

"It is a relatively complex exercise requiring close cooperation and deployment of resources as technicians need to physically disconnect and reconnect individual lines", Telstra Wholesale told Whirlpool.

iiNet has so far migrated thousands of customers over to their infrastructure, but suddenly ceased a few months ago. "We haven't done any migrations since Christmas," said Michael Malone, MD of iiNet. This has left thousands of iiNet customers unable to realise the benefit of faster ADSL speeds via iiNet DSLAMs, even though their exchange is enabled.

Simon Hackett, MD of Internode says that Telstra quote eight weeks for migrations, and will only deal with those of at least 100 customers.

Cost also plays a big part, with Telstra Wholesale charging $99 per customer for bulk migrations, which Telstra claims is "based on recovering the efficient costs of providing a logistically complex service."

Hackett disagrees. His calculations of the costs involved run to thousands of dollars per man-hour. "Telstra claim this charging regime is cost based. Their techs must be exceptionally special people."

Hackett says Internode will still push ahead with migrations, while "maintaining...pressure on Telstra, directly and indirectly, to reform a set of processes and costs that are clearly out of step with the urgent commercial requirements of their customers."

iiNet has no news as to when migrations might resume, however. "We're still working with Telstra, but it's a very slow process."

The ACCC appears to be siding against Telstra. ACCC Commissioner Ed Willett gave stinging testimony to the issues facing Telstra competitors in a speech to SPAN.

"Several commentators have recently pointed out the potential for an incumbent to engage in non-price discrimination or 'sabotage' to kill off...competition before it even gets a foothold.

"For example, competitors have argued that Telstra does not have enough qualified staff to meet demand for the ULLS/LSS and that it limits the number of migrations that can take place on a given day.

"I would simply note, at the very least, that the existing Telstra processes, developed several years ago at the outset of ULLS roll-outs, appear ill-suited to the rapid, mass-market DSLAM deployment that is currently being contemplated by a number of service providers."

He revealed that the ACCC has raised these issues with Telstra and is "actively considering" options available under the Trade Practices Act and elsewhere to "expedite industry outcomes".

Links:

• "Promoting effective competition within the telecommunications sector"  (ACCC, 1 Apr 2005)