One of the worst performers on the ASX 200 on Wednesday has been the Telstra Corporation Ltd (ASX: TLS) share price.
In afternoon trade the telco giant's shares are down over 2.5% to $2.99.
Why is the Telstra share price tumbling lower today?
A day ahead of making its decision on the merger between TPG Telecom Ltd (ASX: TPM) and Vodafone, the ACCC has taken aim at Telstra.
According to a media release from the competition watchdog, the ACCC has commenced a public inquiry into making final access determinations (FADs) for Telstra's six fixed line services and for wholesale ADSL.
These fixed-line services allow other telecommunications companies like TPG Telecom and Vocus Group Ltd (ASX: VOC) to use Telstra's existing copper network facilities to provide voice and broadband services to their retail customers.
ACCC Commissioner Roger Featherston explained that: "Our inquiry will consider the terms and conditions that should be covered in the FAD, including the prices for the services and non-price terms and conditions of access."
It has commenced an initial consultation and is now inviting submissions on issues concerning the next FAD. The ACCC will explore whether existing FAD prices should be continued and is considering the structure and term of this arrangement.
The ACCC will release a more detailed consultation and position paper in February 2019, with submissions due by the end of March 2019.
What now?
This isn't the first time that the FAD has been looked at by the ACCC and it may not be the last.
Should the competition watchdog lower access prices it would be a bit of a blow for Telstra, though the NBN rollout will certainly lessen the impact.
For now, I wouldn't act on this news and would suggest investors wait for an update from the ACCC next year before considering your next move.
