ACCC begins public consultation on Telstra's LCS and WLR exemption applications
The Australian Competition and Consumer Commission today issued a discussion paper on Telstra's applications for exemption from the standard access obligations for the local carriage service and wholesale line rental service.
On 9 July 2007, Telstra lodged its exemption application. Telstra sought the exemption in 371 metropolitan exchange service areas, arguing that there is sufficient competitive infrastructure in these areas such that regulation of these services is no longer necessary.
Under the Trade Practices Act 1974, the ACCC must decide within six months whether granting Telstra the exemptions from its standard access obligations in the 371 metropolitan exchanges would be in the long-term interests of end users.
"The ACCC noted in its fixed services review that it will be inclined to progressively withdraw access regulation where sustainable effective competition has emerged and continued declaration would no longer promote the LTIE," ACCC Chairman, Mr Graeme Samuel, said today.
As part of assessing the exemption applications, the ACCC is inviting interested parties to respond to issues raised in the discussion paper. The ACCC is seeking comment on issues relevant to the consideration of the exemption applications, including whether 'enduring bottlenecks' continue to exist, market definition, current and potential state of competition in upstream and downstream markets, and the effect of the exemptions on incentives for efficient investment.
The ACCC will consider submissions lodged with the ACCC by Thursday, 18 October 2007.
Telstra on 24 August 2007 lodged an exemption application from the standard access obligations for the Domestic Transmission Capacity Service on 20 capital-regional routes. An ACCC discussion paper on these applications will follow.
The LCS and WLR discussion paper and Telstra's exemption application in relation to the DTCS will be available on the ACCC website.
The ACCC will assess these and any future exemption applications within a framework that orders the consideration of declared services. This process was foreshadowed in the Fixed Services Review – Second Position Paper.
Media inquiries
Mr Graeme Samuel, Chairman, 0408 335 555
Mr Ed Willett, Commissioner, 0414 559 999
Mr Michael Cosgrave, Group General Manager Communications Group, 0416 043 160
Ms Lin Enright, Director, Media Unit, (02) 6243 1108or 0414 613 520
The local carriage service is a wholesale local call service that allows access seekers to resell local calls to end-users.
The wholesale line rental service involves the provision of a basic line rental service that allows an end-user to connect to the public switched telephony network.
The LCS was declared by the ACCC in August 1999 and re-declared in July 2006. WLR was declared by the ACCC in July 2006.
Following the ACCC's decision to regulate a service under Part XIC, standard access obligations exist for any carriers or carriage service provider providing that service, whether to themselves or to other persons. The obligations include the requirement that the regulated service must be provided to service providers, along with specified ancillary services, on request.
A carrier can apply to the ACCC for a written order exempting it from any, or all, of the standard access obligations that apply to a regulated service. In deciding whether to make an order, or not, the ACCC must consider whether it will promote the long-term interests of end-users of the carriage services, or services provided by means of carriage services.
