The Australian Competition and Consumer Commission is vested with powers to arbitrate telecommunications access disputes and make a final binding determination to resolve a dispute. Arbitration hearings are private and the ACCC generally does not make any public comment on disputes except to announce when a dispute has been notified.
Details of determinations can be viewed on the public register.
Division 5 of Part XIC of the Trade Practices Act 1974 enables access providers to voluntarily lodge written access undertakings with the ACCC specifying the terms and conditions upon which they agree to supply a specified service. The ACCC can accept or reject the undertaking.
Part XIC of the Trade Practices Act enables the ACCC to ‘declare’ telecommunications services. Upon declaration, standard access obligations apply. The access provider is obliged to supply the service to an access seeker upon request.
The ACCC has the ability to vary or revoke declarations, but, with the exception of minor changes, must hold a public inquiry ahead of such changes.
An access dispute relating to the price for the supply of the local carriage service from Telstra to Primus.
An access dispute relating to the price for the supply of the wholesale line rental service from Telstra to Primus.
Netspace Pty Ltd has notified the ACCC of a telecommunications access dispute with Telstra Corporation Limited relating to the price for the supply of domestic transmission capacity between Melbourne and Hobart.
TPG Internet Pty Ltd and Network Technology (Aust) Pty Ltd have separately notified the ACCC of telecommunication access disputes with Telstra Corporation Limited in relation to the line sharing service (LSS) supplied by Telstra:
The network technology dispute relates to LSS monthly charges, connection charges and disconnection charges.
The TPG dispute relates only to LSS monthly charges.
The ACCC has commenced the arbitration process for these access disputes. Further information about telecommunication access disputes is available here.
ACCC accepts digital pay-TV undertaking from Foxtel
On 16 March 2007 the ACCC announced its decision to accept a special access undertaking from Foxtel for its digital pay-TV set-top unit service.
The undertaking will permit independent providers of digital content channels—including interactive digital channels—to offer their channels directly to Foxtel customers through Foxtel’s digital set-top units. Digital content providers using the undertaking will be able to offer their channels to Foxtel’s customers as a tier to Foxtel’s 'Basic Package'.
On 1 September 2006 the ACCC issued a draft decision to reject the original special access undertaking lodged by Foxtel. The ACCC had not reached a final decision before Foxtel withdrew its original special access undertaking. Foxtel made various changes to the price and non-price terms and conditions of access to its digital set-top units to address the ACCC's concerns about the original undertaking.
Foxtel is the first company to register a special access undertaking with the ACCC.
The ACCC issues discussion paper on access undertaking lodged by Optus for domestic GSM terminating access service
On 7 March 2007 the
ACCC has issued a discussion paper on an access undertaking lodged by Optus Mobile Pty Ltd and Optus Networks Pty Ltd in relation to its domestic GSM terminating access service (DGTAS).
Optus’s undertaking, lodged on 16 February 2007, specifies certain terms and conditions upon which Optus undertakes to supply the DGTAS.
Under the Trade Practices Act the ACCC must accept or reject an undertaking based on whether it considers the terms and conditions to be reasonable.
View a copy of the undertaking and discussion paper here.
On 2 March 2007 the ACCC announced its decision to revoke the Part A competition notice issued in relation to Telstra increasing its wholesale line rental prices.
In December 2005 Telstra raised the price of its 'Home Access' product, which is an input used by Telstra's wholesale customers to provide line rental and local call services to consumers. The price increase resulted in Telstra's retail prices for the line rental component for the majority of its fixed voice products being below Telstra's wholesale price for line rental.
On 12 April 2006 the ACCC issued a Part A competition notice to Telstra in relation to the increases in the wholesale price for Home Access. The notice came into force on 13 April 2006, allowing penalty proceedings to be commenced by the ACCC and also activating third party rights to seek compensation for the breach of the competition rule.
Although valid for a period of 12 months, earlier revocation of the notice by the ACCC leaves the notice in force until 27 February 2007 (inclusive).
Revocation of declaration of the analogue pay-TV service
On 16 March 2007 the ACCC announced its decision to revoke its declaration of the analogue pay-TV service. This follows public consultation and the issuing of a discussion paper on 20 November 2006.
The analogue pay-TV service was declared on 1 September 1999 in accordance with the Act. Since the declaration the majority of pay-TV providers in Australia have changed their retail subscribers to digital pay-TV services, with 90 per cent of Australian pay-TV subscribers using digital cable or other technologies. As the regulation is no longer necessary to promote competition, a decision was made to revoke the declaration.
The ACCC delivered two speeches on telecommunications in March 2007.
ACCC Chairman Graeme Samuel addressed the ATUG annual conference in Sydney on 7 March 2007.
In his speech Mr Samuel emphasised the growth of the Australian broadband network despite the current 'noise and bluster' about telecommunications competition and access regulation.
Mr Samuel acknowledged that Telstra had repeatedly indicated its ability to switch on ADSL2+ in as little as 48 hours. He noted that Telstra’s calls for regulatory certainty could be addressed by seeking an exemption from regulation for ADSL2+ and he called on Telstra to turn on ADSL2+ and offer high-speed broadband to the vast majority of Australians.
Mr Samuel also delivered a speech at the Australian Broadcasting Summit on 5 March 2007, in which he addressed the regulation of media and broadcasting networks in a constantly changing environment. He emphasised that a changing environment provides new challenges for regulators because regulation is only meaningful if it is kept up-to-date with changes occurring in the market.
Mr Samuel discussed at length the variety of new technologies emerging, including mobile broadband with increasing speeds, digital television and digital radio. He said there was an increasing trend towards different types of content converging and being delivered via a single device. In this context he discussed the ACCC role in media mergers.
Roma to Brisbane Pipeline revised access arrangement
The ACCC released its final decision on APT Petroleum Pipelines Limited’s revised access arrangement for the Roma to Brisbane Pipeline (RBP) on 22 December 2006. The ACCC concluded that the amended revisions submitted by APTPPL in response to the ACCC’s draft decision did not comply with the requirements of the Gas Code and specified a range of amendments to be made. On 28 February 2007 APTPPL submitted its amended revisions and a submission in response.
On 28 March 2007 the ACCC released its further final decision approving the amended revisions submitted by APTPPL. The ACCC concluded that APTPPL had substantially incorporated all the required amendments and/or otherwise satisfactorily addressed the matters identified as the reasons for requiring the amendments.
APTPPL’s amended revisions incorporate an initial capital base of $296.4 million based on the straight line DORC methodology. It has provided a submission addressing the reasons underlying the ACCC’s decision to deduct past capital contributions. The ACCC is satisfied that users who had made capital contributions as part of past expansions of the pipeline can negotiate for discounts below the reference tariff in the future by utilising the dispute resolution provisions of the code. The ACCC accepted the APTPPL submission that in this instance the ICB should not be adjusted downwards for past capital contributions. Documents relating to the RBP access arrangement are available on the AER website.
Proposed access arrangement for the Dawson Valley Pipeline
On 5 February 2007 the ACCC received a proposed access arrangement and access arrangement information from Anglo Coal (Dawson) Limited, Anglo Coal (Dawson Management) Pty Ltd and Mitsui Moura Investment Pty Ltd, the service providers of the Dawson Valley Pipeline (DVP).
The DVP transports gas 47 km from coal-seam methane gasfields in the Dawson Valley in Queensland to the Wallumbilla to Gladstone via Rockhampton Pipeline (the Queensland Gas Pipeline).
The Australian Energy Regulator (AER) received four submissions from Molopo Australia Pty Ltd, AGL Sales (Queensland) Pty Ltd, Sunshine Gas Ltd and WestSide Corporation Ltd. The ACCC expects to release its draft decision in May.
Documents associated with the access arrangement, including submissions, the proposal and access arrangement information, can be obtained from the AER website.
NT Gas associate contract
On 25 January 2007 NT Gas Pty Limited (NT Gas) requested that the ACCC approve a contract between it and NT Gas Distribution (NTGD—an associated company) for the interruptible supply of gas until 1 January 2009.
Under s. 7.1 of the Gas Code, the ACCC must approve an associate contract unless it considers the contract would have the effect, or would be likely to have the effect, of substantially lessening, preventing or hindering competition in a market.
The ACCC undertook public consultation as part of the assessment process and on 14 March 2007 approved the contract.
Extension for lodgment of revised access arrangements for the Victorian principal transmission system
On 28 March 2007 the ACCC approved a request from GasNet and VENCorp under the National Third Party Access Code for Natural Gas Pipeline Systems to extend the date for the lodgement of revisions to their respective access arrangements for the principal transmission system.
Both GasNet and VENCorp requested an extension for the lodgment of revised access arrangements on the basis of the Victorian Government’s intention to remove VENCorp as a service provider under s. 10.2 of the Gas Code.
The ACCC has approved revised submission dates of 30 April 2007 for GasNet and 30 November 2007 for VENCorp.
On 8 March 2007 the AER published the results of its compliance monitoring and enforcement activities conducted during the December quarter.
The AER continues to publish weekly market analyses that set out the spot price for each 30-minute trading interval in each region of the National Electricity Market. These reports and other related monitoring publications are available on the AER website.
