ACCC issues report on Telstra's compliance with its price controls
The Australian Competition and Consumer Commission has issued its latest assessment of Telstra's compliance with its retail price control arrangements.
This report concerns Telstra's compliance with the arrangements that applied for the six-months from July to December 2005.
"The ACCC's report notes that it is satisfied that Telstra has adequately complied with its price control arrangements", ACCC Chairman, Mr Graeme Samuel, said.
The report can be obtained from the ACCC's website, ACCC offices or by calling 1300 302 502.
The Government determines the retail price control arrangements that are to apply to Telstra. The first such price control arrangements were introduced in 1989. Since then, the Government has commissioned periodic reviews, the most recent changes being introduced from 1 January 2006.
Under the retail price control arrangements, the ACCC is responsible for developing a methodology by which to measure price changes, assessing the accuracy and completeness of Telstra's report and providing an annual report to the Minister on the adequacy of Telstra's compliance with them.
The price control arrangements that applied in the six months from July to December 2005 included separate price caps on three baskets of services:
the first basket comprises local calls, trunk calls and international calls, which has a cap of CPI - 4.5 per cent per annum
the second basket comprises line rentals, which has a cap of CPI + 4 per cent per annum, and
the third basket comprises connection services, which has a cap of CPI – 0 per annum.
These caps apply to the weighted average prices of the services in the baskets as supplied to all Telstra's retail customers.
These price control arrangements also required untimed local call charges to be broadly similar for both metropolitan and non-metropolitan consumers and for Telstra to comply with a number of other specific pricing and notification requirements.
