ACCC Releases discussion papers on access pricing principles for mobile networks and non-dominant telephony networks

The Australian Competition and Consumer Commission today released several papers looking at possible pricing approaches for the regulation of wholesale (access) services provided over mobile and the smaller (non-dominant) fixed line networks. These services are used by service providers to supply mobile-to-fixed and mobile-to-mobile calls, as well as long distance calls and local calls to consumers.

A key issue raised by these papers is whether mobile networks and non-dominant telephone networks should be regulated in a similar way to Telstra's fixed network.

The pricing of these wholesale services has a significant impact on the call charges paid by consumers. As such, the ACCC has sought expert economic advice on principles that should be used to price these services.

To accompany this expert advice, the ACCC is also issuing two discussion papers which summarise the main tenets of the expert's findings in relation to each matter and raise broader issues of particular interest to the ACCC.

The ACCC's interest in these issues stems from a number of recent access disputes that the ACCC is currently arbitrating. The ACCC, in progressing the various arbitrations on these matters recognises that there will be issues of general principle on which it will be appropriate to seek the views of industry as a whole as well as other interested parties.

Accordingly, the papers have been released for public comment and are available on the ACCC's web-site www.accc.gov.au . Comments are due by 31 January 2000.

Background

Under Part XIC of the Trade Practices Act 1974 (the Act), the ACCC is responsible for arbitrating disputes about access to particular 'declared' services.These services are generally inputs used by service providers to supply end-to-end telecommunications services and/ or content services.

The Domestic GSM Originating and Terminating Access Services (collectively referred to as 'declared GSM services') and the PSTN Originating and Terminating Access Services (PSTN declared services) are four such declared services.

The declared GSM services are provided by means of mobile networks. They are used by carriers and service providers to provide mobile to mobile calls, calls to 13/1800 services from mobile phones and fixed to mobile calls.

The declared PSTN services are provided by means of fixed line networks. They are primarily used by carriers and service providers to carry long-distance calls (both national and international) from customers connected to an alternative access network, but who are pre-selected to or use the over-ride code of the access seeker. Unless otherwise exempted from the application of standard access obligations, the declared PSTN services include the supply of terminating and originating access services by non-dominant networks (ie non-Telstra networks).

In the latter part of 1999, the ACCC received notice of a number of access disputes relating to these declared GSM services and PSTN services of non-dominant networks. Consequently the ACCC is required to determine the terms and conditions (including price) of these declared GSM and PSTN services. An issue common to these arbitrations is the price at which the declared GSM services, and the declared PSTN services (on non-dominant networks), are to be supplied.