ACCC draft decision to reject Optus's undertakings for mobile terminating access service

The Australian Competition and Consumer Commission today announced its draft decision to reject the access undertakings submitted by Optus Mobile Pty Limited and Optus Network Pty Limited (together Optus).

On 16 February 2007, Optus lodged an ordinary access undertaking, the Optus 2007 undertaking, with the ACCC about the mobile terminating access service.

The Optus 2007 undertaking specifies certain terms and conditions upon which Optus undertakes to supply its domestic GSM terminating access service for the period 1 July 2007 to 31 December 2007 inclusive.

"The ACCC has rejected the Optus 2007 undertaking because the price terms and conditions are not reasonable," ACCC Chairman, Mr Graeme Samuel, said.

Optus in its submission supporting the undertaking, indicated 12 cents per minute was an appropriate price for the supply of MTAS.

Optus's proposed price or the supply of the DGTAS is likely to significantly overstate the efficient costs of providing the service in Australia.

Copies of the ACCC's draft decision and other documentation relevant to the access undertakings will be available on the ACCC website.

The ACCC seeks submissions from interested parties on its draft view by no later than AEST 9 a.m. Monday 6 August 2007.