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
July 2009 final decision
On 15 July 2009, the ACCC issued a final decision in relation to a combined public declaration inquiry under section 152AL of the Trade Practices Act 1974 (Cth) for the six fixed-line services expiring on July 31 2009.
The ACCC’s final decision is to extend the declaration of each of the six fixed-line services for a period of five years until 31 July 2014.
In making its decision, the ACCC considers there is a need for as much regulatory certainty as possible regarding the access arrangements that apply to the fixed-line services. The ACCC has extended each of the six fixed-line declarations for the full statutory period available. The ACCC is satisfied that sufficient statutory mechanisms exist to review regulation if required at any time, given a change in market conditions or other developments, such as National Broadband Network services becoming available.
At the commencement of this public inquiry, the ACCC also determined to combine the declaration review with the inquiry into the variation of the ULLS service description, which was suspended in April 2008. The ACCC’s final decision is that it is not satisfied that varying the ULLS service description at this time would promote the long-term interests of end users.
The final decision is available below. Any questions about the declaration inquiry should be directed to Simon Haslock at simon.haslock@accc.gov.au or 03 9290 6919 in the first instance.
June 2009 draft decision
On 4 June 2009, the ACCC issued a draft decision in relation to a combined public declaration inquiry under section 152AL of the Trade Practices Act 1974 (Cth) for the six fixed-line services expiring on July 31 2009.
The ACCC issued a draft decision setting out its views on a variety of issues relevant to the fixed-line declarations. The ACCC’s draft decision was to extend the declaration of each of the six fixed-line services for a period of five years.
At the commencement of this public inquiry, the ACCC also determined to combine the declaration review with the inquiry into the variation of the ULLS service description, which was suspended in April 2008. The ACCC’s draft decision was that it is not satisfied that varying the ULLS service description at this time would promote the long-term interests of end users.
Submissions to the draft decision closed on 25 June 2009. The ACCC received eight submission in response. Each of the submissions are available below.
November 2008 discussion paper
In November 2008 the ACCC 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)
local carriage service (LCS)
which are due to expire 31 July 2009.
Pursuant to section 152AN of the TPA, the ACCC 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 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 original deadline for submissions to the discussion paper was 13 March 2009.
On 10 February 2009, Telstra wrote to the ACCC requesting an extension for submissions in response to the ACCC discussion paper. On 23 February 2009 (letter dated 20 February 2009), the ACCC responded to Telstra's letter and advised that the deadline for making submissions for all interested parties would be extended to 27 March 2009. A copy of Telstra's letter and the ACCC's response are available in links below.
The ACCC received 14 submissions from interested parties in response to the ACCC discussion paper, fixed services review—declaration inquiry (November 2008). The public submissions are available below.
Macquarie Telecom provided public and confidential versions of its submission. Optus provided public and confidential versions of its submission, with an additional confidential attachment.
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.
