ACCC issues local telecoms pricing services paper

The Australian Competition and Consumer Commission today issued the discussion paper, Pricing Local Telecommunications Services.

The paper is part of the ACCC's current Local Call Inquiry that is investigating approaches to promote competition in local telephone provision.

The paper discusses possible approaches to pricing services that provide carriers with access to Telstra's customer access network. The customer access network is the set of lines that connect customers to their local telephone exchange. Access to these lines will enable carriers to provide competitive local telephone services to businesses and households, including local calls and enhanced services such as high-speed data services.

"The ACCC aims to promote discussion of pricing access to Telstra's customer access network to ensure that the maximum benefits of future competition in the local telephony market go to consumers," the ACCC Commissioner with responsibility for telecommunications, Mr Rod Shogren, said today.

The ACCC is currently deciding whether to declare these services, under part XIC of the Trade Practices Act 1974. If the ACCC does declare these services, Telstra will be required to provide them to other carriers at prices that are subject to arbitration by the ACCC.

"The issue of this paper is designed to test the ACCC's preferred pricing approaches and to elicit views of interested parties.

It should not be seen as pre-empting the decision of the ACCC on whether to declare these services," Mr Shogren said.

"The ACCC believes its preferred pricing approaches are consistent with the current uniform retail prices for untimed local calls, which are of great importance to Australian consumers.

"The pricing approaches are designed to encourage competition in the provision of local telephone services, including local calls and enhanced services. It is competition that will be the major driver of lower prices and innovation in local telephone services."