Assessment of Telstra's Structural Separation Undertaking and draft Migration Plan

Telstra - Structural Separation Undertaking and draft Migration Plan

Summary

On 29 July 2011, Telstra submitted a structural separation undertaking and draft migration plan to the ACCC under sections 577A and 577BDA, respectively, of the Telecommunications Act 1997 (Cth). Telstra also provided a submission in support of its undertaking and draft plan.

On 24 August 2011, Telstra submitted a revised draft migration plan in response to certain concerns raised by the ACCC. Telstra also provided a letter outlining the amendments to the draft migration plan and proposed future amendments to the structural separation undertaking.

On 25 August 2011, Telstra provided the ACCC with a letter intended to better inform interested parties about the proposed organisational and staff incentive arrangements included in its structural separation undertaking.

On 9 December 2011, Telstra submitted a revised structural separation undertaking and a submission in support of its revised undertaking.

On 25 January 2012, Telstra provided the ACCC with a supporting submission explaining the implementation timeframe for its structural separation undertaking.

On 23 February 2012, Telstra submitted a further revised structural separation undertaking.

On 27 February 2012, the ACCC accepted Telstra’s structural separation undertaking (version dated 23 February 2012) and approved the draft migration plan (24 August 2011). A copy of the ACCC’s final decision is below. The ACCC also accepted a joint section 87B undertaking from NBN Co and Telstra in connection with matters raised through the consultation process. A copy of the undertaking will be placed on the public register and is also available below.

On 6 March 2012, Telstra's  Structural Separation Undertaking and Migration Plan came into force on the  signing of a declaration by the Minister under subsections 577J(3) and (5) of  the Act. These declarations are available on the DBCDE website.

Consultation

The ACCC is responsible for assessment of the structural separation undertaking and draft migration plan.

The ACCC was required to undertake a 28 day consultation period in relation to the draft migration plan. The ACCC has also invited comments from interested parties on Telstra’s structural separation undertaking.


ACCC's discussion papers

On 30 August 2011, the ACCC issued a discussion paper inviting comment from industry stakeholders and consumers in relation to Telstra's Structural Separation Undertaking and draft Migration Plan.

On 16 December 2011, in response to the submission of Telstra's revised structural separation undertaking, the ACCC issued a discussion paper inviting comment from industry stakeholders and consumers.

These discussion papers and relevant materials can be found below.


ACCC decision on Telstra’s Structural Separation Undertaking and draft Migration Plan


Assessment of Telstra's Structural Separation Undertaking and draft Migration Plan - Final Decision.pdf (931.1 KB)

Undertaking given to the ACCC under section 87B of the Competition and Consumer Act by Telstra and NBN Co.pdf (1.2 MB)

Telstra's further revised structural separation undertaking and supporting submissions


Telstra’s Further Revised Structural Separation Undertaking – submitted 23 February 2012.pdf (1.5 MB)

Telstra’s Structural Separation Undertaking – submitted 23 February (with mark up).pdf (1.7 MB)

Telstra supporting submission for implementation timeframes for Further Revised SSU – submitted 25 January 2012.pdf (28.7 KB)

December discussion paper


December discussion paper - Assessment of Telstra's revised SSU.pdf (148.4 KB)

Submissions in response to the December discussion paper

Telstra's revised structural separation undertaking, draft migration plan and supporting submissions


Telstra's Revised Structural Separation Undertaking - submitted 9 December 2011.pdf (1.1 MB)

Telstra's draft Migration Plan - revised 24 August 2011.pdf (970.5 KB)

Telstra's supporting submission for Revised SSU - submitted 9 December 2011.pdf (106.4 KB)

Telstra's supporting submission for SSU and Migration Plan - submitted 29 July 2011.pdf (719.5 KB)
 

Telstra's public reporting TEMplates.pdf (10.7 KB)

Explanatory note - Telstra's public TEM reporting templates

These are the templates that Telstra has advised the ACCC it will use as the basis for its public TEM reporting pursuant to paragraph 2.2 of Schedule 9 of the revised SSU.


Letter from Telstra regarding revisions to draft Migration Plan and SSU - submitted 24 August 2011.pdf (104.5 KB)

Telstra's Structural Separation Undertaking - submitted 9 December 2011 (with mark-up).pdf (1.5 MB)

Telstra's draft Migration Plan - revised 24 August 2011 (with mark-up).pdf (979.5 KB)

August discussion paper


August discussion paper - Assessment of Telstra's SSU and draft Migration Plan.pdf (1.1 MB)

Submissions in response to the August discussion paper

Telstra's prior application and supporting submissions


Telstra's draft Migration Plan - submitted 29 July 2011 (superseded).pdf (880.4 KB)

Telstra's Structural Separation Undertaking submitted 29 July (superseded).pdf (506.0 KB)

Relevant materials


Structural Separation Undertaking


Telstra and NBN Co's responses to questions regarding Definitive Agreements.pdf (84.0 KB)

Explanatory Note - Telstra and NBN Co's responses to questions regarding Definitive Agreements
 

The ACCC has asked NBN Co and Telstra a number of questions regarding the operation of the Definitive Agreements. The parties have advised that their responses may be made publicly available.


Migration Plan


Disconnection protocols.pdf (193.9 KB)

Explanatory Note - Disconnection Protocols

 

The Disconnection Protocols agreed between NBN Co and Telstra which are included in a Schedule to the Subscriber Agreement are relevant to understanding the disconnection process.

 

The Disconnection Protocols represent the key commercial commitments that Telstra and NBN Co have agreed in respect of the disconnection of the Telstra Copper Network and HFC Network. They have been disclosed in order to provide some context for the public consideration of Telstra’s Structural Separation Undertaking and draft Migration Plan.

 

Readers should note that in a number of important areas these provisions address different subject matter to the regulatory obligations in relation to disconnection set out in Telstra’s draft Migration Plan. Further, the arrangements in the Disconnection Protocols involve only Telstra and NBN Co. More information in relation to NBN Co’s view of wider industry migration processes and arrangements is set out in the Migration to the National Broadband Network information guide published by NBN Co and available on its website.

 

Definitions pertaining to capitalised terms are located elsewhere in the Definitive Agreements and have not been disclosed. However, key terms and concepts are explained in the Migration to the National Broadband Network information guide published by NBN Co and in the ACCC’s discussion paper on the Structural Separation Undertaking and draft Migration Plan.

 

Certain provisions have also been omitted as they relate to commercial arrangements between NBN Co and Telstra and are not relevant to an understanding of the disconnection process, as set out in the Disconnection Protocols and the draft Migration Plan.


A Guide to Telstra's price-related interim equivalence and transparency obligations.pdf (85.0 KB)

Letter from Telstra regarding organisational arrangements and staff incentives under the SSU.pdf (170.1 KB)

Related Materials

NBN Co has supplied the following materials at the request of the ACCC:

Cover letter from DBCDE and NBN Co.pdf (995.0 KB)

NBN Co public submission in relation to s.577BA of the Telecommunications Act 1997.pdf (176.4 KB)

NBN Co confidential submission

 

Letter from the Secretary of the Department of Finance and Deregulation regarding NBN Co’s Submission on Telstra’s Structural Separation Undertaking:


Letter from the Secretary of the Department of Finance and Deregulation regarding NBN Co’s Submission on Telstra’s Structural Separation Undertaking.pdf (499.1 KB)

Related topics on the ACCC website

Independent Telecommunications Adjudicator in Communications
Structural Separation in Communications
Structural Separation Undertaking in Communications
Implementation of the migration plan in Communications