ACCC invites comments on approach to DTCS pricing

The Australian Competition and Consumer Commission today issued a discussion paper which reviews the pricing of the domestic transmission capacity service (DTCS).

Growing demand for media rich communications services on new and emerging fixed and mobile broadband platforms means that underlying backhaul networks require increased capacity.  It is therefore appropriate to consider the costs involved in providing this capacity.

The discussion paper invites submissions on different approaches for pricing the DTCS in a manner that is consistent with the current access regime under Part XIC of the Trade Practices Act 1974 and the proposed access regime set out in the Telecommunications Legislation Amendment (Competition and Consumer Safeguards) Bill 2009.

Acting ACCC chairman Peter Kell said: "Transmission is an increasingly important component of the communications infrastructure, particularly given the increased need to backhaul large volumes of data.  Pricing of transmission services is also complex and the ACCC wishes to engage with industry in reviewing the most appropriate approach to transmission pricing."

The DTCS discussion paper should be read in conjunction with the Frontier Economics report Economics of transmission capacity services which is also issued today.

The ACCC has also today issued a discussion paper about publishing information on the location of transmission infrastructure. This information is currently collected by the ACCC under the Record Keeping Rules and if released, would help inform all stakeholders about the current availability of transmission infrastructure.

The ACCC invites all interested parties to make submissions to the discussion papers by 5 p.m. on 11 June 2010.

The discussion papers and the Frontier Economics report will be available on the ACCC website www.accc.gov.au via the For regulated industries, communications section.