"But not so effective that we can junk our regulatory framework or stand by and see it rendered ineffective in practice," she said.

On a wholesale basis, Telstra has been chastised by carriers over its Unconditioned Local loop (ULL) pricing. At a Service Providers Association (SPAN) lunch recently, Macquarie Telecom chief executive David Tudehope said current ULL pricing will cost the industry and consumers millions and is a step back towards the monopoly of the early 90s.

The Australian Competition and Consumer Commission (ACCC) is investigating ULL pricing structures.

ISP iiNet expects the final ACCC-approved ULL price to come in at A$22 (US$16) per month, but reckons it should be between A$16 to A$18, based on OECD and ACCC averages.

Telstra last month began charging A$30 a month for ULL services; a Telstra spokesperson saying that fee only just met Telstra's costs.