Telstra fined $16.7 million for blocking competitors from COs

Telstra (ASX: TLS.AX) will now have to pay a $16.7 million (AUD19 million) fine for illegally blocking competitors access to its local COs (central offices).

After the Australian Competition and Consumer Commission (ACCC) filed a complaint, the federal court determined that the service provider violated the Trade Practices Act and carrier license conditions by preventing broadband rivals from entering seven COs 27 times between July 2006 and April 2008.

When the ACCC brought the complaint to court, it argued that Telstra should be required to pay a $32 million fine for blocking competitor access to its facilities. However, Justice John Middleton decided to give the incumbent carrier a 30 percent discount on each violation in return for their "cooperation, acceptance of responsibility and for voluntarily implementing a compliance program."

For more:
- TeleGeography has this article

Related articles:
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Telstra faces stiff penalty for holding up competitors' DSL rollouts
Telstra retools its management team
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