ACCC provides further guidance on reasonable terms of access to the Line Sharing Service
The ACCC has today published final determinations made in two arbitrations concerning disputes over access to the Line Sharing Service*.
The final determinations specify certain of the terms on which Telstra supplies the LSS to Primus Telecommunications and Request Broadband. These are LSS rental charges and the terms on which LSS services are connected or disconnected, either individually or as part of a 'network migration', including charges payable for service qualifications. This follows the parties being unable to agree on them, and notifying disputes for ACCC arbitrations.
"Publishing these determinations and accompanying reasons provides further guidance on what the ACCC considers to be reasonable terms of access and pricing for the LSS.
"A number of access seekers have notified disputes regarding terms of access to the LSS that are dealt with in these final determinations," ACCC Chairman, Mr Graeme Samuel, said.
The ACCC has specified a LSS rental charge of $2.50 per service per month, and has reduced the charges that apply when connecting or disconnecting a LSS (either individually or as part of a network migration). Also, the timeframes to migrate in bulk wholesale ADSL services to the LSS have been reduced.
"Reducing LSS connection and disconnection charges and the timeframes for bulk ADSL migrations to the LSS will bring significant long term benefits to consumers of broadband services," Mr Samuel.
The charges result from applying the ACCC's long–standing pricing principles for the LSS (August 2002) and, in respect of LSS annual charges, the ruling of the Australian Competition Tribunal (June 2006).
The final determinations and accompanying statement of reasons will be available on the ACCC's website.
* 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 declared on 30 August 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.
Primus and Request notified the dispute to the ACCC for arbitration in December 2004 and in April 2006, respectively.
The ACCC can backdate a final determination to apply from a time no earlier than the commencement of negotiations. In these arbitrations, the ACCC has backdated aspects of the final determinations to the date when Telstra commenced supplying the LSS to Primus and to Request.
In addition to the disputes notified by Primus and Request, there are six other disputes over access to the LSS that are currently before the ACCC for arbitration. The ACCC is moving towards the making of final determinations in these arbitrations.
On 21 August 2007, the ACCC announced its draft decision to extend the LSS declaration until 31 July 2009. This 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.
Telstra recently instituted proceedings in the Federal Court. The proceedings concern a recent decision of the Commission under s 152CP by way of final determination of an access dispute between Chime Communications and Telstra in relation to terms of access and pricing of the LSS. The proceedings are by way of judicial review under the ADJR Act.
