The Australian Competition and Consumer Commission has released a draft final access determination for the domestic mobile terminating access service (MTAS) for public consultation under the new telecommunications access regime.
The MTAS is a technology-neutral wholesale input, used by providers of voice calls from fixed line, mobile and IP networks, in order to complete voice calls to end users directly connected to digital mobile networks. The calling party’s network pays the MTAS price to the receiving party’s network. This MTAS price is generally passed on to the calling party in the form of retail charges.
ACCC pricing principles reduced the rate for the MTAS from 21 cents per minute in 2004 to 9 cents per minute from 1 July 2007. The rate has remained at 9 cents per minute since that time and the current pricing principles expire on 31 December 2011. These previous price reductions have led to increased competition in the retail mobile services market.
The draft final access determination implements price reductions for the regulated MTAS rate, from 6 cents per minute on 1 January 2012 to 3.6 cents per minute on 1 January 2014.
The ACCC considers that the price terms represent a conservative assessment of the efficient costs of providing the MTAS, and that the reductions will further encourage competition in the relevant downstream markets. The draft final access determination also includes non-price terms and conditions.
“The ACCC considers that these proposed price reductions reflect efficient costs and also provide regulatory certainty for the industry over the next two and a half years”, ACCC chairman Rod Sims said.
While parties will still be able to negotiate their own agreements, an access determination will establish benchmark terms and conditions for access seekers.
The ACCC is now seeking comments on the draft final access determination for regulation of the MTAS, which is available on the ACCC website.
Interested parties are invited to make written submissions on the draft final access determination by 5 pm on 21 October 2011. After consideration of the submissions, the ACCC proposes to issue the final access determination and a final report before the end of the year.