The Australian Competition and Consumer Commission today released its draft decision to continue regulating the wholesale asymmetrical digital subscriber line (ADSL) service for a further five years.
The ACCC considers that continuing to regulate the wholesale ADSL service will benefit customers by promoting competition in broadband markets until the NBN rollout is complete.
“Telstra retains its dominant position in both the wholesale and retail markets for the supply of ADSL fixed-line broadband services on a national level,” ACCC Commissioner Cristina Cifuentes said.
“Continuing regulation will ensure network providers continue to have access to Telstra’s copper network at reasonable prices. This will encourage them to continue competing in the retail market to develop and offer different ADSL broadband products to meet the needs of customers as they prepare to shift to the NBN.”
The ACCC invites submissions on its draft decision from stakeholders and interested parties by no later than 5 pm on 14 November 2016.
The draft decision is available at Wholesale ADSL service declaration inquiry 2016.
The ACCC expects to finalise its decision in early 2017 before the current declaration expires.
Background
The wholesale ADSL service is a point-to-point service which enables retail service providers to deliver high speed fixed-line broadband internet services to their customers, using another network provider’s equipment.
The wholesale ADSL service was first declared in February 2012. The ACCC is required to review the wholesale ADSL declaration before it expires on 13 February 2017.
The ACCC can declare a service if it is satisfied that doing so would promote the long-term interests of customers. Once a service is declared, a network owner must provide access to the service upon request and where commercial agreement cannot be reached, regulated price and non-price terms determined by the ACCC will apply. Declaration ensures all service providers have access to the infrastructure they need to supply competitive communications services to customers.