Confirmation of interim determinations in two telecommunications arbitrations
The Australian Competition and Consumer Commission today published further details of interim determinations made in two telecommunications disputes regarding the supply of the Line Sharing Service (LSS)*.
The publication relates to the terms to apply on an interim basis to the connection and disconnection of the LSS (either on an ad hoc basis or as part of a managed network migration), and the basis upon which those terms have been specified.
The interim determinations were made in arbitrations between Telstra and the following parties:
Chime Communications Pty Ltd and
Request Broadband Pty Ltd.
For instance, for a managed network migration, the interim determinations provide for a connection charge of $1,500 per migration for up to 50 connections at an exchange, and an additional $30 per connection beyond 50. The interim determinations also specify that the access seeker is not required to pay a disconnection charge where a new service is to be provided on the line within 30 days, such as where the end-user churns to another service provider or the access seeker is migrating services from the LSS to the Unconditioned Local Loop Service (ULLS).
The ACCC has previously published details of the LSS annual charges to apply on an interim basis in these access disputes. The LSS connection and disconnection terms are in addition to the previously published LSS annual charge terms.
The interim determinations were made on 21 December 2006, and the charges will apply between the parties until either the interim determinations expire, are revoked, the LSS ceases to be a declared service, or until a final determination is made in each arbitration.
The ACCC will publish on its website relevant extracts from the respective interim determinations and associated statements of reasons that are relevant to informing the debate on the LSS and encouraging more reasonable LSS prices to apply across the market. The interim determinations will be available on the ACCC website, under Published arbitration determinations.
Under the Trade Practices Act 1974 the ACCC may make an interim determination in a dispute prior to making a final determination, and may publish, in whole or in part, the contents of a determination and/or reasons after consulting with the parties. The ACCC has considered parties' submissions in deciding whether or not to publish these details.
The ACCC intends to progress the Chime and Request disputes towards a final determination as a matter of priority.
Given that the legislation contemplates that arbitrations be conducted in private, the ACCC will not be making any public comments at this stage.
* The LSS allows an access seeker to share the use of a single metallic pair or line. The higher frequency part of the line is used by the access seeker to supply broadband services while another provider supplies a PSTN voice service over the same line.
The LSS is a declared service. The Commission declared the LSS on 30 August 2002, pursuant to subsection 152AL(3) of the Act. A copy of the declaration was published in the Commonwealth of Australia Gazette No. GN41, 16 October 2002.
The ACCC is vested with arbitration powers enabling it to make directions and 'do all things necessary for the speedy hearing and determination of an access dispute'. For the ACCC to engage in arbitration, an access seeker and/or an access provider must notify the ACCC of an access dispute. The ACCC may arbitrate an access dispute only where:
a declared service is supplied or proposed to be supplied by a carrier or carriage service provider
one or more standard access obligations apply or will apply to the carrier or carriage provider in relation to the declared service and
an access seeker is unable to agree with the carrier or carriage service provider regarding the terms and conditions on which the carrier or carriage service provider is to comply with the standard access obligations.
Where a dispute cannot be resolved after private negotiations, mediation and/or conciliation, either of the access parties may refer the matter to the ACCC. Arbitration by the ACCC would be considered as a final solution for the parties in dispute. Where the ACCC is notified of an access dispute the ACCC must determine the matter, unless it decides to terminate the arbitration or the notification is otherwise withdrawn.
