ACCC launches review into telecommunications access pricing and holds current levels

The Australian Competition and Consumer Commission today announced a fundamental review of the Access Pricing Principles for telecommunications services.

"This is a critical review of pricing principles which have been in place since 1997. Since this time the telecommunications regulatory, technological and competitive landscape, have and continue to evolve, and a review is timely," ACCC chairman Graeme Samuel said today.

"Industry continues to raise issues regarding the revaluation and hypothetical optimisation of existing network assets which are key to the current pricing principles, and a review is likely to be well accepted by the sector. It will draw a line in the sand and address the pricing principles afresh for the new environment," he said.

As a result of the review, the ACCC has determined to maintain the current pricing principles and indicative prices for fixed line services until 31 December 2010.
These services enable Telstra's competitors to provide fixed voice and broadband services over Telstra's copper network.

"This will provide as much certainty as possible to industry and consumers while the fundamental approach to pricing is being reviewed," Mr Samuel said.
The review and current prices apply to -

• the unconditioned local loop service (ULLS);
• the line sharing service (LSS);
• the public switched telephone network originating access (PSTN OA) service;
• the public switched telephone network terminating access (PSTN TA) service;
• the local carriage service (LCS);
• and the wholesale line rental (WLR) service.

Prices are set out in the table.

The final pricing principles and indicative prices determination is available on the ACCC website at: Final Pricing Principles Determination for Fixed Services

The discussion paper on the ACCC’s overall pricing approach is available on the ACCC website at: Review of Access Pricing Principles for Fixed Line Services - Discussion Paper

The ACCC is currently inviting for submissions to the pricing review, and these are due by 26 February 2010, and can be lodged at appreview@accc.gov.au.

Indicative prices for LCS, WLR, PSTN OTA, ULLS and LSS 1 August 2009 to 31 December 2010 – Final determination

ULLS per service per month (plus connection charges)

• Band 1: $6.60
• Band 2: $16.00
• Band 3: $31.30
• Band 4: na

LSS per service per month (plus connection charges)

$2.50

WLR per month

Residential: $25.57

Business: $26.93

LCS  per call (all areas)

17.36c

PSTN OTA (cents)