UPDATED | Telstra is asking the ACCC to block Optus from using the copper network in areas where it has its own cable network.

Telstra claims that Optus has abandoned investment in its cable network and instead prefers to use Telstra's copper infrastructure over Unconditioned Local Loop (ULL).

"SingTel Optus picks the easy homes to connect to its cable network and then cheap rides on the Telstra network for more complex residences like multi-dwelling apartments", said Telstra's Tony Warren.

It has been Optus' policy since launching its cable broadband service to not connect those in apartments and other MDUs (multi dwelling units). Optus says this is because running individual cables into each unit is "uneconomic". However, contrary to Telstra's claim, Optus also has a policy that it will not sell a ULL service to a customer if it can be serviced by its cable network.

But Telstra claims that Optus is avoiding 40% of customers in its cable footprint, while in other countries, the figure is typically 8%.

In a statement, Optus said that Telstra's application had "little chance of approval", believing it is "a desperate last throw of the dice by Telstra to distract the ACCC as it is set to hand down its watershed ruling on ULLS prices." This ruling "will finally open up last mile access to genuine competition", said Optus.

This is the second attempt by Telstra this year to block competitors from its copper network. In July, Telstra made a submission to the ACCC to seek the removal of regulations around its wholesale ADSL service in areas where competitors had installed DSLAMs. This included 371 exchanges and 5.2 million copper lines, all of which it claimed were serviced by at least one other provider than Telstra. The ACCC has yet to respond to that request.

Links:

• Optus to be forced to upgrade its "lazy" cable network  (Telstra, 18 Dec 2007)
• Exemption application to reduce regulation in competitive areas  (Telstra, 10 Jul 2007)