The competition regulator should be stripped of its control over the pricing and access terms of Telstra's wholesale phone and internet services, according to the draft report of the Harper Review.

Telstra's fixed-line phone and internet services are strictly regulated by the Australian Competition and Consumer Commission because the telecommunications giant has a near-monopoly over the copper-line networks that rivals depend on.

The ACCC is currently running a large-scale review of Telstra's fixed line services, which could impact the price of phone, mobile and internet services across all carriers in Australia. Credit:James Davies

The ACCC is currently running a large-scale review of Telstra's fixed line services, which could impact the price of phone, mobile and internet services across all carriers in Australia.

But the Harper Review said the ACCC should be stripped of its access and pricing regulation. This would in turn be given to a new Access and Pricing Regulator, which would cover the issue across several industries.