Telstra's broadband prices capped

broadband prices it charges to other telcos before the competition watchdog will allow it to finalise a lucrative deal with NBN, which is building the national broadband network, The Sydney Morning Herald says.

The Australian Competition and Consumer Commission (ACCC) says the proposed wholesale price cap will lead to lower prices for consumers and increased competition during the transition to the NBN.

The ACCC ruled that retail Internet service providers must have fair and transparent access to the nation's fixed-broadband lines, ABC News reports.

It was concerned about Telstra's dominance of the industry and will make a final decision on prices later.

The ACCC's interim determination set out terms and conditions of access for the next 12 months while it completes its full inquiry on wholesale ADSL access, Technology Spectator writes.

That inquiry is likely to conclude in six months' time.

The interim monthly per-user access charge in cities has been set at $25.40 a month and $30.80 a month for regional and rural areas. The new pricing structure will come into effect in July when the current wholesale contracts between the ISPs and Telstra expires.