Australia's competition watchdog will deregulate the service used to transmit voice, data and other communications between mainland capital cities.
The Australian Competition and Consumer Commission (ACCC) said it would stick with a draft decision in March to remove controls on the inter-capital transmission capacity service.
"New investment is occurring and is planned on the inter-capital routes such that the commission considered access regulation on these routes was no longer likely to benefit telecommunications users," acting ACCC chairman Rod Shogren said.
"This is a clear indication of the ACCC's willingness to remove regulation where it is no longer required."
Routes between Sydney, Canberra and Melbourne are already unregulated and the ACCC said new entrants, PowerTel and Marcocom had already invested in the eastern seaboard.