ACCC to issue Interim Access Determinations for telecommunications fixed line pricing in early 2011

In early 2011 the Australian Competition and Consumer Commission will issue Interim Access Determinations covering price and non-price terms for the fixed line services using the new powers conferred on it by the Telecommunications Legislation Amendment (Competition and Consumer Safeguards) Act 2010.

During 2010 the ACCC was in the process of consulting with industry on new pricing principles and indicative prices to apply from January 2011. The ACCC proposed a shift from its previous pricing methodologies (TSLRIC+ and RMRC) to a new building block model (BBM) pricing methodology. Draft pricing principles and prices were released in September 2010.

ACCC chairman Graeme Samuel said the ACCC is still analysing substantial submissions and new information received in response to its earlier consultation on pricing principles, commenced under the old legislation, which will now be used to calculate prices for Interim Access Determination.

The telecommunications access regime under Part XIC of the Competition and Consumer Act 2010 will substantially change following the start of the Telecommunications Legislation Amendment (Competition and Consumer Safeguards) Act 2010 on 1 January 2011. Of particular note is the replacement of bi-lateral arbitration telecommunications access disputes with an Access Determinations power. Access Determinations can specify price and non-price terms for access seekers not currently subject to an existing commercial agreement with Telstra. Because of this legislative change, the review of the 1997 access pricing principles has been suspended as the power to make such principles will be removed by the new legislation.