The Australian Competition and Consumer Commission has today released a final access determination (FAD) for the domestic mobile terminating access service (MTAS) following consultation with stakeholders.
The MTAS is a technology-neutral wholesale input, used by providers of voice calls from fixed line, mobile and IP networks, in order to complete voice calls to end users directly connected to digital mobile networks. The calling party’s network pays the MTAS price to the receiving party’s network. This price is generally passed on to the consumer in the form of retail charges.
The ACCC’s previous pricing principles reduced the rate for the MTAS from 21 cents per minute in 2004 to 9 cents per minute from 1 July 2007. The rate has remained at 9 cents per minute since that time and the current pricing principles expire on 31 December 2011.
The FAD implements a reduction in the regulated MTAS rate, from 6 cents per minute on 1 January 2012 to 3.6 cents per minute on 1 January 2014.
The ACCC considers that these prices represent a conservative assessment of the efficient costs of providing the MTAS. The FAD also includes non-price terms and conditions.
“There has been significant change to the mobiles industry since the current pricing principles were issued in 2009,” ACCC chairman Rod Sims said.
“The ACCC considers that the price reductions reflect efficient costs and provide regulatory certainty for the industry over the next two and a half years.”
While parties will still be able to negotiate their own commercial agreements, the FAD establishes benchmark prices and non-price terms and conditions for access seekers to fall back on in negotiations.
