Telstra application for LCS and WLR exemptions (July 07)
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On 13 August 2008, the ACCC made an in-principle decision to grant Telstra exemptions from the standard access obligations in respect of the supply of the local carriage service and wholesale line rental subject to a number of proposed limitations and conditions.
Prior to making its final decision on Telstra’s 9 July 2007 and 12 October 2007 exemption applications (Final Decision) the ACCC intends to engage on a short period of consultation on the conditions and limitations proposed to be made in the Final Decision.
The ACCC is seeking submissions in response to the form of the conditions and limitations set out in the Consultation on Proposed Conditions – Explanatory Statement (available below) to be received by no later than midday Wednesday 20 August 2008.
Due to the statutory timeframe within which the ACCC must make a decision on Telstra’s exemption applications, it is highly unlikely that the ACCC will be able to consider any submissions made after this time prior to making its Final Decision.
On 5 August 2008, Telstra provided the ACCC with a confidential witness statement and attachment in relation to the SIOs affected by the presence of pair gain systems as at June 2008. Telstra has stated that it will not be providing a public version of the witness statement, as the extent of masking is so extensive that the public version would be of no assistance. Telstra has stated that it is prepared to provide the information to interested parties who sign confidentiality undertakings in an appropriate form.
On 7 July 2008, Telstra provided the ACCC with a supplementary submission on the ACCC’s draft decision on Telstra’s LCS and WLR exemption applications.A public version of the submission is provided below.
On 2 July 2008, Telstra provided the ACCC with a public version of their response to the 19 June 2008 information request. The submission is available below.
On 19 June 2008, the ACCC made a request for further information under s. 152AU of the Act to Telstra. The information request is available below.
On 21 May 2008, Telstra was informed of the ACCC's decision to extend the statutory decision-making timeframe under subsection 152AT(12). The letter is available below.
On 29 April 2008, the ACCC released a draft decision on Telstra’s LCS and WLR exemption applications, proposing to grant Telstra exemptions from its standard access obligations. The exemptions proposed by the ACCC are not as broad as that requested by Telstra. The proposed exemptions cover approximately 4 million of Telstra’s copper lines—over half of Telstra's lines in metropolitan Australia.
Given the commonality of issues between Telstra’s exemption applications of 9 July 2007 and 12 October 2007 the ACCC has issued a joint draft decision on both sets of applications. Written submissions in response to the draft decision are requested by Tuesday, 27 May 2008. A public version of the draft decision is available below.
Background
In July 2006, the ACCC declared the local carriage service (LCS) and wholesale line rental (WLR) service, for a period of three years, as part of its Local Services Review.
On 9 July 2007, Telstra provided the ACCC with an application for exemption from the standard access obligations in respect of the LCS and WLR in 371 exchange service areas across metropolitan Australia. Telstra also provided a submission supporting the application, along with attached witness statements and reports.
Telstra provided a public version of the submission and a public version of a report by CRA on the economic considerations for the exemptions at the time of submitting the application. On Monday 16 July 2007, Telstra also provided public versions of the Telstra employee witness statements at Annexure B, D, E and H of its submission. Telstra has stated that it will not be providing public versions of the documents at Annexure C, F, G, I and J of its statement, as the extent of masking is so extensive that the public versions are of no assistance.
Telstra has stated that it is prepared to provide confidential versions of the submission and all attachments and annexures to people who sign confidentiality undertakings in an appropriate form.
The exemption applications and the public versions of the submission, CRA report and four Telstra employee witness statements are available below.
Telstra supplied a supplementary submission in support of its applications in August 2007. The supplementary submission is available below. Telstra also provided a supplementary statement by CRA, an explanatory statement and further witness statements on 11 October 2007. Telstra has only provided a public version of the CRA statement and one witness statement. For the remaining statements, Telstra has stated that the extent of masking needed is so extensive that public versions would be of no assistance.
On 30 August 2007, the ACCC issued a discussion paper on Telstra’s exemption applications. At the time, written submissions in response to the discussion paper were requested by Thursday, 18 October 2007. A public version of the discussion paper is available below.
On 11 October 2007, Telstra wrote to the ACCC requesting a two week extension for the lodgment of submissions in response to the discussion paper. Telstra requested that the deadline for submissions be extended to 1 November 2007. Telstra stated that extra time would be desirable as it would enable it to provide further information directly relevant to the ACCC’s assessment of the exemption applications.
The exemption applications for WLR and LCS are the first in a series of exemption applications following the policy principles expounded in the second position paper of the Fixed Services Review. In light of the novel nature of these exemption applications, the ACCC is therefore of the view that an extension is warranted in these particular circumstances.
The ACCC therefore decided to receive and consider any submissions, or additional supporting information on existing submissions, lodged with the ACCC by Thursday 1 November, 2007.
On 12 October 2007, Telstra provided the ACCC with two further applications for exemption from the standard access obligations, on this occasion in respect of the local carriage service (LCS) and wholesale line rental (WLR) service in 16 exchange service areas across metropolitan Australia (October 2007 LCS and WLR exemption applications).
On 17 December 2007, the ACCC made a request for further information under s. 152AU of the Act to Telstra. The information request is available below.
On 11 January 2008, Optus made a submission to the ACCC regarding Telstra's July 2007 and October 2007 exemption applications in relation to the wholesale line rental service and the local carriage service. Optus has provided a public and confidential version of the submission. Optus states that it is willing to provide interested parties with copies of the confidential submission it has provided to the ACCC. Parties wishing to gain access to this confidential material need to execute a confidentiality undertaking which is available from Carolyn Yan of Optus, at carolyn.yan@optus.com.au. Optus' public submission is provided below.
On 12 March 2008, the ACCC sent Telstra further correspondence in regard to the 17 December 2007 information request. The letter is available below.
On 26 March 2008, Telstra submitted a report by Professor Martin Cave to both the July and October LCS and WLR exemptions. The report is available below.
On 2 April 2008, Telstra provided the ACCC with a public version of their 14 March 2008 response to the 17 December 2007 information request. The submission is available below.
On 7 April 2008, Telstra provided the ACCC with three supplementary statements in support of its exemption applications. Telstra has only provided public versions of two of the reports - the Paterson Report and and a Telstra Witness Statement. These documents are available below. Telstra has stated that it is prepared to provide the full confidential versions of all documents to agreed persons who have provided Telstra a signed confidentiality undertaking in a form acceptable to Telstra.
On 10 April 2008, Telstra provided the ACCC with a response to the Nicholls Legal/CCC submission on Telstra's exemption applications. Telstra's response is available below.
Inquiries about the LCS-WLR exemption applications and draft decision should be directed to Sarah Sheppard on 03 9290 1992 or Dijana Tanevski on 03 9290 1805.
Telstra has not provided public versions of the Telstra employee witness statements at Annexures C, F and G to its submission, or of the documents provided at Annexure I or J. Telstra has stated that the extent of masking needed is so extensive that public versions would be of no a...
