The Australian Competition and Consumer Commission today issued draft pricing principles and indicative prices for the mobile terminating access service (MTAS) from 1 January 2009 to 31 December 2011.
The draft pricing principles continue to adopt a cost–based pricing approach informed by the total service long run incremental cost (TSLRIC+) framework, but have added considerations of international cost benchmarking, developments in other markets and data captured under the Regulatory Accounting Framework (RAF).
"The ACCC remains concerned that the significant reductions in the price of the MTAS since 2004 have not been adequately passed on to consumers making fixed-to-mobile calls, in particular residential consumers," ACCC Chairman, Mr Graeme Samuel, said today.
The draft indicative price for the MTAS to apply from 1 January 2009 to 31 December 2011 will remain at 9 cents per minute.
"The draft indicative price reflects the uncertainties surrounding the actual cost of supplying the MTAS, the significant investments in infrastructure made by mobile network operators (MNOs) and concerns about the absence of substantial reductions in fixed-to-mobile retail," Mr Samuel said.
The ACCC is of the view that maintaining the MTAS price at 9 cpm for three years would provide a higher level of certainty to MNOs and is in long term interest of end-users.
Interested parties are invited to make written submissions on the draft determination and indicative prices by 5 p.m. on Friday 12 December 2008.
For media inquiries to the ACCC Chairman, Mr Graeme Samuel, Mr Ed Willett, Commissioner, Mr Michael Cosgrave, Group General Manager, Communications Group, or Mr Robert Wright, General Manager, Compliance and Regulatory Operations, please call Ms Lin Enright, ACCC Media, on (02) 6243 1108 or 0414 613 520. For general inquiries, please call the Infocentre: 1300 302 502.
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