Telstra let slip some FTTN pricing details yesterday, with its proposed competitor access price starting at $59 (ex-GST) for just 512Kbps.

The $59 price would just provide access to the customer line, and competitors would have to charge more at retail to cover other costs and add margins. It does however include a line rental component of $27, according to reports.

The price makes Telstra's FTTN look expensive compared to current broadband access costs, which offer the same speed for just $27 (without line rental). Decent broadband speeds (i.e. 24Mbit ADSL2+) would need to cost a lot more to make up Telstra's expected $85 average price.

Competitive Carrier's Coalition executive director David Forman said the pricing "confirmed everyone's worst fears". "Telstra's plan would, in one fell swoop, make broadband a luxury item", he said.

Forman said that the new information vindicated the ACCC's opposition to Telstra's plans. "Now we know what Telstra been trying to hide – and thank God commonsense prevailed when it tried to ram this proposal past the ACCC", he said.

But Telstra says the G9's pricing model is also suspect, with both sides arguing over the locking in and gradual increasing of prices for their respective models. Telstra claims the G9 could dramatically increase pricing within 5 years, but the G9 says that Telstra's pricing will not reflect reduced costs over time.

But all the arguing in the media could be for nothing, with the Federal Government expected to create an expert panel to make a decision on a new fibre broadband network.

Telstra CEO Sol Trujillo told reporters yesterday that unless a decision was made by the end of next month, Telstra would consider cancelling its plans altogether.

Links:

• Telstra Warns on Broadband  (The Australian, 8 Jun 2007)
• Telstra's pledge on price  (The Advertiser, 8 Jun 2007)
• G9 submits plan for FTTN  (Whirlpool, 30 May 2007)