ACCC continues to set reasonable terms of access to unconditioned local loop service
The Australian Competition and Consumer Commission today published the final determinations made in two arbitrations concerning disputes over access to the Unconditioned Local Loop Service*.
The published final determinations specify certain terms on which Telstra supplies the ULLS to Chime and Optus. A dispute notified by Primus has also been resolved in a manner consistent with and on the same date as the Chime and Optus determinations.
The ACCC has recently published final determinations made in the Primus-Telstra (monthly charge) and PowerTel-Telstra ULLS (monthly and connection charges) access disputes.
The determinations published today additionally specify call diversion** and service qualification*** charges, as well as certain non-price terms of access, which were not the subject of dispute in the other published disputes. The disputes were notified in 2005 and the determinations are to apply until 30 June 2008, with backdating and interest.
The ACCC has specified a ULLS call diversion connection charge of $9.20 per service in 2007-08. It also specified the circumstances under which a service qualification charge of $6.50 can be levied by Telstra. Further, the ACCC determined certain non price terms of access relating to indemnities for third parties, Telstra's ability to amend operational documents unilaterally and confidentiality.
In publishing these ULLS final determinations, the ACCC continues to ensure that the market is fully informed of the reasonable terms of access and pricing for the ULLS which will bring significant benefits to consumers of voice and broadband services.
The ACCC is currently finalising its consultation process on indicative prices for various aspects of the ULLS for 2008-09.
The ACCC has published these final determinations following a compulsory legislative consultation period on publication with the parties concerned. The final determinations and accompanying statements of reasons will be available on the ACCC's website.
*The Unconditioned Local Loop Service allows telecommunications service providers to gain the use of the copper cables between end users and the telephone exchange. Service providers can use the ULLS in conjunction with their own equipment in telephone exchanges to provide a range of telecommunications services, including traditional voice services and broadband internet access.
**A call diversion service is a service provided by Telstra that permits an end user to keep their existing phone number while switching to a new provider that uses a ULLS.
***A service qualification relating to the ULLS is a service provided by Telstra that permits an access seeker to ascertain whether a ULLS can be provided over a copper line before a ULLS order is made.
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.
On 19 May 2008, Telstra instituted proceedings in the Federal Court seeking review of the ACCC's decision to make final determinations under s 152CP of the Trade Practices Act 1974 in the Chime-Telstra, Optus-Telstra and Primus-Telstra ULLS access disputes. The proceedings are by way of judicial review. These three new proceedings bring the total number of Telstra instituted proceedings concerning decisions of the ACCC under s 152CP to 18.
In addition, the ACCC continues to arbitrate a further 29 access disputes relating to the full range of regulated services.
