Telstra's retail price control arrangements
Telstra is subject to various retail price control arrangements. These are made by the Minister for Communications, Broadband and the Digital Economy under the Telecommunications (Consumer Protection and Service Standards) Act 1999.
The retail price controls apply to a range of Telstra’s fixed-line voice services. Currently, the price controls limit Telstra’s ability to increase prices for three baskets of services and 10 specified connection service products (latter was formarly the fourth basket). In addition, they:
- decide price of untimed local calls and directory assistance calls;
- ensure that a basic line-rental service is offered nationally at a regulated rate;
- provide limits of charges for long-distance and international calls;
- allow schools and charities to access residential service plans; and
- deal with various associated matters.
Under the Competition and Consumer Act 2010 (formerly the Trade Practices Act 1974), the Australian Competition and Consumer Commission (ACCC) must report to the Minister annually on the adequacy of Telstra’s compliance with the price control arrangements. The ACCC annual reports to the Minister can be found here
The ACCC has made a methodology under subclause 13(5) of the Determination for the calculation of price movements. The Government's amendments to the Determination in June 2012 necessitated some minor changes to the methodology. The updated methodology is set out below.
