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Strategic review of the regulation of fixed network services

In December 2005 the ACCC initiated an inquiry to examine the future regulation of certain key fixed network and wholesale services.

Current process - public declaration inquiry

November 2008 discussion paper

The ACCC has commenced a public declaration inquiry relating to the declarations for six fixed-line telecommunications services expiring 31 July 2009.

Pursuant to section 152ALA(7) of the Trade Practices Act 1974 (TPA), the ACCC must hold a public inquiry in the 12 months prior to the expiry date of a declaration.Therefore, the ACCC has decided to initiate a public inquiry, pursuant to sections 152ALA(7), into the declarations of the:

  • unconditioned local loop service (ULLS),
  • line sharing service (LSS),
  • public switched telephone network originating access (PSTN OA),
  • public switched terminating access (PSTN TA),
  • wholesale line rental (WLR) and
  • local carriage service (LCS)

which are due to expire 31 July 2009.

Pursuant to section 152AN of the TPA, the ACCC has also decided to hold a combined inquiry into these declarations.

In addition, in May 2007, the ACCC commenced an inquiry under s 152AL of the TPA into whether to vary the ULLS declaration. This inquiry was suspended in April 2008.  The ACCC is of the view that it is appropriate that the ULLS variation inquiry and the new inquiry should also be combined pursuant to section 152AN. 

The ACCC has therefore prepared a single Discussion Paper for these combined inquiries under paragraph 152AN(2)(b). A copy of the Discussion Paper is available below (ACCC Discussion Paper, Fixed Services Review – declaration inquiry (November 2008)).

The ACCC is seeking written submissions in response to the discussion paper by 5.00pm, 13 March 2009. The ACCC will consider submissions received before this time before making its final decision on the declaration of the relevant services. The process for making submissions is set out in Chapter 1 of the Discussion Paper

Any questions about this Discussion Paper should firstly be directed to Simon Haslock at simon.haslock@accc.gov.au or 03 9290 6919.

Previous processes

December 2005 discussion paper

The inquiry primarily resulted from the need to review a number of existing declarations of fixed network services. However, the inquiry also allows the ACCC to look at broader questions about regulation and to consider emerging market, technological and network developments. The inquiry will therefore look at a number of issues:

  • the pending expiry of declarations for the unconditioned local loop, domestic PSTN originating and terminating access and local carriage service
  • Telstra's announcement of plans to introduce an IP core network and consideration of a fibre-to-the-node network
  • potential substitute technologies such as new generation mobile and other wireless services
  • ongoing competition concerns about the wholesale supply of certain non-declared services.

In December 2005 the ACCC issued a discussion paper outlining the relevant issues and seeking comment from interested parties. The ACCC sought responses to the discussion paper by 17 February 2006. Public versions of the submissions received by the ACCC were released in March 2006 and are available below.

June 2006 position paper

The ACCC released a position paper in June 2006. Submissions on the ACCC's draft decisions concerning the ULLS and PSTN OTA declarations were sought by no later than Friday, 7 July 2006. Submissions concerning the broader regulatory issues in the position paper were sought by 31 August 2006 and public versions are available below.

Declaration of the ULLS and PSTN OTA

The ACCC released a final decision on the declaration of the ULLS and PSTN OTA services in July 2006. That document sought submissions from interested parties on draft pricing principles for the ULLS and PSTN OTA, and draft indicative prices for PSTN OTA, by 31 August 2006. Public versions of the submissions are available below.

The ACCC released its final pricing principles and indicative prices for PSTN OTA in November 2006.

April 2007 position paper

In April 2007, the ACCC released a second position paper outlining a framework for the review of existing regulation, and the principles which will guide future regulatory decisions. Written submissions on the framework for the review of existing regulations were due by 30 July 2007 (a revised date). Public versions of submissions received to date are below.

Inquiries about the second position paper should be directed to Robert Wright at robert.wright@accc.gov.au or 03 9290 1864.

LSS declaration inquiry

The April 2007 paper also commenced a declaration inquiry for the line sharing service (LSS). Written submissions on the LSS declaration inquiry were due by 25 May 2007 (a revised date). Public versions of the submissions are available below.

The ACCC released a draft decision to continue declaration of the LSS in August 2007. Written submissions in response to the draft decision were due by 17 September 2007. Public versions of submissions received are below.

The ACCC released its final decision to continue declaration of the LSS in October 2007. The ACCC at the same time issued pricing principles and indicative prices for the LSS. The ACCC's decision document is available below.

ULLS pricing principles

The ACCC first consulted on draft ULLS pricing principles in July 2006, following the declaration of the ULLS. However, it did not finalise the ULLS pricing principles given that there were a number of ULLS pricing issues being considered in undertakings and subsequently on appeal to the Australian Competition Tribunal.

In October 2007, the ACCC moved to finalise the ULLS pricing principles. Give the lapse of time since the ACCC's previous consultation, the ACCC considered it appropriate to allow parties to make a submission or further submission on the draft ULLS pricing principles.

The ACCC's paper initiating the further consultation on the ULLS pricing principles is available below. Submissions were sought by Tuesday 6 November 2007. Public versions of submissions received are below.

The ACCC released final ULLS pricing principles in November 2007. The ACCC's report on the principles is available below.



Submissions on ULLS pricing principles



Submissions to the LSS declaration draft decision


Submissions to the second position paper on review framework



Submissions on FSR draft pricing principles and indicative prices



Submissions to discussion paper—ACIF, ATUG, CCC, CEPU, Optus

Submissions to discussion paper—Telstra, TransACT, Vodafone

Submissions to the position paper—Telstra, Optus, CCC

This version corrects an error on page 49 of the initially released copy.

Submissions to the LSS declaration inquiry

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