ACCC issues Telstra accounting separation report for June quarter 2008
The Australian Competition and Consumer Commission today issued its twentieth report under the enhanced accounting separation regime for Telstra. These reports concern whether systematic discrimination could be occurring in the price or service quality offered to Telstra retail and wholesale customers. They are not intended to detect all forms of potentially anti-competitive conduct.
The latest report, which presents data for the quarter ending 30 June 2008, includes:
an imputation analysis which tests whether sufficient margins likely exist to allow efficient firms that acquire three core* access services from Telstra to compete against Telstra in the retail market; and
key performance indicators concerning Telstra's service levels when connecting or repairing faults on wholesale and retail fixed-line telephony and ADSL services.
In the current quarter, there was a slight tightening of the imputed margin for competitors using Telstra's resale access services, while margins improved slightly for competitors using the unconditioned local loop service.
The level of service supplied to wholesale customers improved during the quarter. However service levels for new wholesale connections requiring work at the customer's premises – which was a matter discussed in the report for the March 2008 quarter – still need to improve further to bring them into line with retail service levels.
The report will be available on the ACCC website.
*The three core access services are the local carriage service, the PSTN originating and terminating access service, and the unconditioned local loop services (ULLS). The ULLS allow a competitor to lease the use of a customer's line to supply any combination of access, voice, ADSL or other data services.
The enhanced accounting separation regime was introduced to address competition concerns arising from the level of vertical integration between Telstra's wholesale and retail services, and also to improve the provision of price and cost information to the ACCC, competing telecommunications service providers, and the public.
On 19 June 2003, the then Minister for Communications, Information, Technology and the Arts directed the ACCC to issue record-keeping rules to Telstra, requiring Telstra to report on:
current costs in addition to historical costs under the Telecommunications Industry Regulatory Accounting Framework (CCA reports)
imputation analysis comparing Telstra's retail prices and the costs faced by access seekers in purchasing certain core telecommunications services from Telstra (imputation reports)
key performance indicators on non-price terms and conditions that compare Telstra's customer service performance between specified retail and wholesale supplied services (NPTC reports).
The direction requires that the ACCC make the reports publicly available and comment on the reports submitted. In accordance with the direction, the ACCC first issued record-keeping rules to Telstra in June 2003. The ACCC issued revised these rules in September 2004.
