Telstra - Market Position and Power

Market Position and Power

Since the Australian telecommunications industry was deregulated in the early 1990s, Telstra has managed to remain the largest provider of telecommunications services despite the emergence of its rival, Optus. Telstra found a strategy of offering lower rates on some routes and at certain times of day, even though its prices, on average, were higher than its rival's was more likely to prevent consumers from switching. Ultimately, Telstra was able to retain several points of market share it otherwise would have lost.

Telstra's market dominance extends beyond its historical PSTN voice and private data business, into newer markets such as Internet Access, Hosting, and Colocation services. Despite competition from both foreign and domestic challengers, the former PTT is perceived to have retained a strong grip on many of the country's most profitable customers.

Optus remains the company's nearest rival for business networks, however, Telstra supplies almost twice as many customers in the ASX200 with Dedicated Internet Access services.

In March 2008, all 7 judges in the High Court of Australia, the highest court of appeal in Australia, ruled that Telstra has the right to use the telephone lines, but does not own them.