Arch-rivals Telstra and Optus are in fierce disagreement about the decision to marginally reduce the regulated price for accessing Telstra's fixed copper network.

Australian homes and businesses should receive lower phone and internet bills for at least four years after a draft decision by the Australian Competition and Consumer Commission to cut the price Telstra can charge for access to its network by 0.7 per cent. Telstra had sought a 7.2 per cent price increase in October, arguing rival telcos that use its network should pay more to offset the impact of the national broadband network rollout.

Telstra announced that Warwick Bray will follow in the new CEO's footsteps, appointing him to become chief financial officer as Andy Penn takes over as chief executive on May 1. Credit:Christopher Pearce

Commission chair Rod Sims said: "I think it will lead to a smooth transition to the NBN because basically prices will stay the same, and the NBN have undertaken to keep their prices the same in nominal terms."

Telstra's head of regulatory affairs, Jane van Beelen, said the decision was "disappointing", while rival Optus said the decision was a "good starting point" and there was room for further price reductions.