The competition regulator backed Telstra's push to exclude payments from its $11.2 billion deal with NBN Co when setting the price of phone and internet services.

Telstra pushed to increase its wholesale prices by 7.2 per cent this month in a move that would affect millions of customers at rival telcos. It said the move of customers onto the NBN meant those remaining on its copper network would need to pay more to help the company recover its costs.



Telstra's proposed fixed-line wholesale price increases could see widespread price hikes for broadband services. Credit:James Davies

Competitors including SingTel-Optus chairman Paul O'Sullivan have been calling on the Australian Competition and Consumer Commission to reject the move and include payments from Telstra's deal to help build the national broadband network when considering any price adjustments.

But in a statement on Wednesday morning, ACCC chairman Rod Simsrejected these calls and said the payments would not be included in any calculations as the NBN took over as Australia's core telco network.