However, Telstra is still forced by the Australian Competition and Consumer Commission to charge low prices for competitors to access its copper wires.

"In the CBD and metropolitan areas there is a real alternative supply... which is winning customers in the marketplace.

"Pretending that it is not [competitive] and needs a high regulatory environment is not justified," Warren said.

Optus' Paul Fletcher said Telstra was doing its bit to kill competition.

Raising the fixed line cost of the ULL was one measure.