A.C.C.C. proposes to oversee access to Telstra exchange facilities

The Australian Competition and Consumer Commission today published a draft record keeping rule it proposes to issue requiring Telstra to keep records and give reports to the ACCC relating to access to Telstra exchange facilities.

"The ACCC has received a large number of complaints from access seekers regarding difficulties in accessing exchanges to install equipment to provide ADSL2+ services to consumers, in competition with Telstra," ACCC Chairman, Mr Graeme Samuel, said today.

"Complaints relate to the delays caused by Telstra’s queuing system to access exchanges and to Telstra’s processes for 'capping' exchanges.  Multiple access seekers face long delays to install equipment at an exchange.

"There is also concern regarding the lack of independent verification of decisions made by Telstra that there is insufficient exchange space for access seeker equipment.

"The ACCC considers that Telstra’s processes for 'capping' an exchange have not been sufficiently accurate or robust, particularly given that visual inspections of exchanges were not always undertaken by Telstra to assess the space available. The ACCC welcomes Telstra’s recent proposed improvements to these processes.

"However, the ACCC believes that there remains a clear need for independent oversight to provide confidence to access seekers investing in competitive DSLAM infrastructure that decisions on 'capping' are made on the basis of robust information and to identify the exact cause of delays.

"The ACCC considers there is a need to impose discipline on those access seekers at the front of the queue as well as Telstra to ensure there are no unreasonable delays. Importantly, the proposed record keeping rule should also ensure that access seekers are not unreasonably denied access to Telstra exchanges by increasing the accountability of Telstra’s decision making processes.

"Under the proposed record keeping rule, Telstra is required to give monthly reports to the ACCC regarding queued exchanges and decisions by Telstra to 'cap' exchanges on the basis of insufficient space."

In addition to consulting with Telstra, the ACCC seeks the views of interested parties in relation to the proposed record keeping rule, with submissions due by Thursday 5 June 2008. A copy of the draft record keeping rule is available on the ACCC website.

Submissions should be provided in an electronic format to: Kate Hebbard, Assistant Director, Communications Enforcement & Compliance, Email: kate.hebbard@accc.gov.au

The Australian Competition and Consumer Commission is responsible for overseeing the development of a competitive telecommunications industry within Australia.
Under Parts XIB and XIC of the Trade Practices Act 1974, the ACCC is responsible for prevention of anti-competitive conduct in telecommunications markets and administration of the telecommunications specific access regime.
To carry out its functions under Parts XIB and XIC of the Act, the ACCC regularly obtains detailed information from the carriers under arrangements, including its record-keeping rule powers.  Under section 151BU in Part XIB of the Act, the ACCC has the power to make Record Keeping Rules by written instrument and require that specific carriers and carriage service providers comply with these rules.