ACCC calls for submissions on Telstra's proposed line sharing' service access undertaking

The Australian Competition and Consumer Commission has issued a Discussion Paper calling for submissions on Telstra's proposed access undertaking for its line sharing service.

The line sharing service enables two carriers to provide separate services over a single line. For example, it allows Telstra to supply basic telephone services to a customer while also enabling its competitors to provide high-speed data services on the same line.

The undertaking specifies the terms and conditions under which Telstra will provide access to the line sharing service until 31 December 2004. Specifically, it proposes a monthly rental charge of $15 per service in operation.

"In deciding whether to accept or reject the proposed undertaking the ACCC will consult widely with the public to ensure interested parties have the opportunity to fully express their views", ACCC Chairman, Mr Graeme Samuel, said today. "The discussion paper outlines the process the ACCC will follow in assessing the undertaking, including the appropriateness of Telstra's proposed rate of $15 per month. Industry views on current and future uptake of the line sharing service are particularly encouraged".

Under the Trade Practices Act 1974 the ACCC has six months from the submission date to determine whether to accept or reject the proposed access undertaking. The access undertaking was submitted on 1 September 2003.

However, this period has been extended as the ACCC required Telstra to supply further explanatory information to support its undertaking. This supporting material will be made available to interested parties as part of the consultation process.

The ACCC seeks submissions on the undertaking by no later than five weeks from the date upon which Telstra makes relevant confidential information reasonably available for industry assessment.

Access undertakings

Part XIC of the Trade Practices Act 1974 establishes a telecommunications-specific regime for facilitating access to the networks of competing carriers.

Under Part XIC, providers of a declared service (access providers) must comply with standard access obligations which compel them to supply that service to access seekers.

Part XIC also makes provision for an access provider to lodge access undertakings which may specify the price and/or non-price terms upon which it proposes to meet its standard access obligations.

The ACCC is required to assess the proposed access undertakings. It must not accept the access undertaking unless:

• it has published the undertakings and invited submissions;
• it has considered any submissions received within a prescribed time limit;
• it is satisfied the undertakings comply with the standard access obligations;
• it is satisfied the terms and conditions in the undertaking are reasonable; and
• the undertaking expires within three years.

The service

The LSS was declared on 7 October 2002 following the ACCC's decision that declaration would be in the long-term interests of end-users.

Line sharing refers to a situation where two separate carriers provide separate services over a single metallic pair (or line).

Specifically, the LSS involves the access provider providing a voiceband PSTN service to an end-user, whilst providing access to another carrier (the access seeker) to simultaneously provide services to the same end-user over the high-frequency portion of the unconditioned local loop. For example, if Telstra is the access provider, it could deliver voice services to end-users, while a second carrier could simultaneously provide high-speed data services (such as ADSL) over the same line.