High Court unanimously supports validity of the telecommunications access regime
The Australian Competition and Consumer Commission today welcomed a unanimous decision by the Justices of the High Court of Australia to confirm the constitutional validity of Part XIC of the Trade Practices Act 1974, and specifically its application to the Unconditioned Local Loop Service (ULLS) and Line Sharing Service (LSS).
The High Court has confirmed that Telstra's ownership of the public telephone network has always been subject to the rights of its competitors to gain access to and use its network for the ultimate benefit of customers. Accordingly, the access regime does not amount to an acquisition of Telstra's property.
"The telecommunications access regime is a key component of the regulatory framework supporting the development of a competitive telecommunications industry," ACCC Chairman, Mr Graeme Samuel said.
"Today's High Court ruling comprehensively rejects Telstra's arguments, referring to them as 'synthetic and unreal'. It provides welcome clarity around the basic regulatory rules which all carriers must abide by.
"Today's ruling also removes yet another layer of uncertainty created by the Telstra strategy of continual litigation. It provides welcome encouragement to industry participants using the access regime to continue investments which provide competitive services to end users," Mr Samuel said.
The ACCC continued to arbitrate and make determinations relating to the ULLS and LSS while awaiting judgement.
Mr Michael Cosgrave, Group General Manager, Communications Group, (03) 9290 1914or 0416 043 160
Mr Brent Rebecca, Media Unit, (02) 6243 1317
General inquiries
Infocentre 1300 302 502
Release # MR 062/08
Issued: 6th March 2008
Background
Once a telecommunications service provider has installed its own equipment in an exchange, it can purchase the ULLS or LSS to connect copper pair connecting end users to the exchange directly to its equipment and provide telecommunications services.
The ULLS allows service providers to use the full spectrum capability of the copper pair to provide a range of telecommunications services, including traditional voice services and broadband internet access.
The LSS is more limited, only allowing the service provider to use the high frequency spectrum to provide a broadband service. It can only be used in conjunction with the active provision of a traditional voice service by (typically) Telstra.
