November 14, 2007
IF TELSTRA wanted to play in the "telecommunications sandpit" it had to abide by the rules and that meant sometimes sharing its bucket, lawyers for rival telco Optus told the High Court in Canberra today.
Telstra has mounted a constitutional challenge against the Australian Competition and Consumer Commission's power to determine the amount the telco can charge rivals like Optus to use its broadband network.Current arrangements force Telstra to give rivals access to its broadband "local loops" for as little as $2.50 a month - a price it believes is too low.
Telstra argues that its property is being "compulsorily acquired" but it is not being afforded compensation on "just terms", as required under the Australian constitution.
Stephen Gageler, counsel for Optus, said giving rivals access to its network was "part and parcel" of Telstra's licensing obligations.
"You do not have to play in the telecommunications sandpit," Mr Gageler told the court today.
"If you want to play in the telecommunications sandpit, then you play by the rules." And the rules mean you have to sometimes "share your bucket", he said.
Commonwealth solicitor-general David Bennett argued that Telstra's property was not being taken.
"This is not a borderline case, this is a case where there's simply not an acquisition of property."
Counsel for the ACCC, Neil Young, said the method the regulator used to determine how much Telstra's rivals were charged to use its infrastructure was "appropriate and fair".
AAP
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