ACCC cuts 10% from internet and phone bills

A DECISION by the competition regulator could mean millions of Australian phone and internet users will have their bills slashed.

The Australian Competition and Consumer Commission's draft decision released on Monday has cut the price Telstra can charge its wholesale customers by 9.6%.

Most Australians make fixed-line phone calls and surf the web using Telstra's copper network, even if they purchase services via other companies such as Singtel-Optus and iiNet.

The ACCC said the most important issue for the draft decision on prices was the effect of the transition from Telstra's fixed line network to the NBN.

The NBN is replacing Telstra's legacy network as the infrastructure over which Australians receive fixed line voice and broadband communications.

As services are disconnected from the legacy network, some assets become redundant and the efficiencies of servicing large numbers of customers are progressively lost.