2010 Review of Telstra's price control arrangements

The Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy, issued a direction (the Direction) on 23 December 2009 requiring the Australian Competition and Consumer Commission (ACCC) to hold a public inquiry. The inquiry relates to the retail price control arrangements that should apply to Telstra after the expiration of the current retail price control arrangements – Telstra Carrier Charges – Price Control Arrangements, Notifications and Disallowance Determination No. 1 of 2005 (Amendment No.1 of 2009) on 30 June 2010.

The review’s terms of reference noted that it is not intended for retail price control arrangements to now be discontinued, and that the ACCC should consider, amongst other things, the design and level of possible price control arrangements to apply from July 2010 to June 2012.

The Direction also required the ACCC to consider the possible clarification and streamlining of the current retail price control arrangements.

On 15 January 2010, the ACCC commenced a public inquiry to review the retail price control arrangements that apply to Telstra. The ACCC has issued a discussion paper seeking submissions on a number of issues the Minister considered relevant to the review, including the effect current retail price control arrangements have had on competition, efficiency and consumer choice. A full list of questions the ACCC sought views on is contained in the discussion paper.

The ACCC invited submissions on its discussion paper from stakeholders and interested parties by 12 February 2010.

On 12 March 2010 the ACCC finalised its review of the price control arrangements and provided its report to the Minister.

On 16 June 2010 the Minister authorised the release of the ACCC Report.

A copy of the ACCC report is available at the link below.