They say that Telstra's continuing market power and control over Australian networks is strangling smaller telcos. Primus Telecom's founder and chief executive, Ravi Bhatia, wasted no time in blaming Telstra for One. It reduces the profit margin of the company which is trying to compete, and it makes them lose customers. If you take the two together, it's a lethal concoction. Bhatia says that the wholesale line rental price charged by Telstra to telcos such as his is higher than the price they charge retail customers.
Many smaller telcos agree.
But few larger industry players agree with Primus that Telstra's market dominance contributed to One. Tel's demise - even though most agree that gaining access to the networks is too painful and expensive. They explain that while Primus is right to worry about Telstra's market dominance, One. Tel's demise was more linked to unsustainable discounting and excessively optimistic growth forecasts. What happened to One.