ACCC issues draft decision on future regulation of the Line Sharing Service
The Australian Competition and Consumer Commission today issued its draft declaration decision for the Line Sharing Service*.
"The ACCC's draft decision is to continue regulation of the LSS on a national basis until 31 July 2009. Continued declaration of the LSS will be in the long-term interests of end users," ACCC Chairman, Mr Graeme Samuel, said today.
"The ACCC's draft view is that continued regulation of the LSS will promote competition in broadband markets. This will allow consumers to choose from a wider range of broadband service providers, increasing their opportunity to gain a more competitive service-price offering."
The ACCC's draft decision to extend the LSS declaration until 31 July 2009 will allow the ACCC to reconsider the regulation of the service as part of its proposed comprehensive review of fixed line services regulation that will commence in 2008.
The ACCC has also proposed draft pricing principles and draft indicative prices for the LSS. These indicative prices follow the ACCC's recent final determinations in three arbitrations concerning the terms of access to the LSS.
The ACCC invites interested parties to make written submissions on the draft declaration of the LSS by 17 September 2007. The ACCC will issue a final declaration decision by 31 October 2007.
*The LSS allows two carriers to provide separate services over a single metallic pair or line. The higher frequency part of the line is used by the access seeker to supply broadband (DSL) services, while the access provider supplies a PSTN voice service over the same line. The LSS was originally declared on 30 August 2002.
**Section 152ALA of the Trade Practices Act 1974 requires the ACCC to review each declaration within the year preceding its expiry date.
The purpose of the review is to determine whether the declaration should be extended, allowed to expire, varied or revoked, or if a new declaration should be made. An extension to an expiry date, or the expiry date for a new declaration, may not be for a period exceeding five years. The ACCC must decide whether declaring the service would promote the long-term interests of end users (LTIE) of carriage services, or of services supplied using carriage services ('listed services').
In determining whether declaration promotes the LTIE, regard must be had only to the extent to which declaration is likely to result in the achievement of the following objectives.
promoting competition in markets for listed services
achieving any-to-any connectivity in relation to carriage services that involve communication between end-users
encouraging the economically efficient use of, and the economically efficient investment in, the infrastructure by which telecommunications services are supplied.
