Low income households already bearing the brunt of Telstra’s market power would be worse off if price caps were removed, according to The Australia Institute’s submission to an Australian Competition and Consumer Commission’s review.

The ACCC is considering whether competition in telecommunications is sufficient to grant Telstra’s call for price controls to be dropped. The ACCC today published submissions to its review, which will be completed by 12 March.

The Institute argues that existing price caps do little to address Telstra’s monopoly power and that price controls should be strengthened rather than weakened.