The Australian Competition and Consumer Commission has today issued a further Competition Notice regarding Telstra's customer transfer process (known within the industry as 'Commercial Churn').
ACCC Commissioner responsible for Telecommunications, Rod Shogren, said today the fresh Notice would ensure Telstra did not repeat the behaviour that had resulted in the Commission issuing a similar Notice on 10 August 1998.
Mr Shogren noted that the Notice issued on 10 August 1998 (to come into force on 30 September 1998) had been effectively replaced by the Notice issued today. Both notices relate to the transfer process provided by Telstra between 4 August 1997 and 27 September 1998.
The reason for replacing the previous Notice is that on 28 September, two days before that Notice came into force, Telstra made a number of changes to its commercial churn arrangements.
"This new Notice, while it covers the same conduct complained of in relation to Commercial Churn, is a signal to Telstra and industry that the Commission maintains its belief that Telstra had previously contravened the law."
"Importantly, the Commission wrote to Telstra last week seeking a response to Commission concerns about Telstra's new churn arrangements that came into effect from 28 September 1998."
"The Commission is also presently considering industry's comments on the changes to the transfer process. Once we have had an opportunity to consider these comments and Telstra's response, the Commission will consider whether there has been a further breach of the Competition Rule, which prohibits anti-competitive conduct in telecommunications markets."
Telstra originally imposed the customer transfer process on 4 August 1997. Shortly thereafter the ACCC received several complaints from industry. Complainants were concerned about the transfer conditions imposed by Telstra and its continued refusal to negotiate on terms and conditions.
Commissioner Shogren said he was disappointed that, in introducing the new churn arrangements on 28 September, Telstra had imposed a new cost structure without any consultation with industry.
"Normally, the Commission would expect there would be discussion about such matters which affect other service providers."
ACCC Commissioner responsible for Telecommunications, Rod Shogren, said today the fresh Notice would ensure Telstra did not repeat the behaviour that had resulted in the Commission issuing a similar Notice on 10 August 1998.
Mr Shogren noted that the Notice issued on 10 August 1998 (to come into force on 30 September 1998) had been effectively replaced by the Notice issued today. Both notices relate to the transfer process provided by Telstra between 4 August 1997 and 27 September 1998.
The reason for replacing the previous Notice is that on 28 September, two days before that Notice came into force, Telstra made a number of changes to its commercial churn arrangements.
"This new Notice, while it covers the same conduct complained of in relation to Commercial Churn, is a signal to Telstra and industry that the Commission maintains its belief that Telstra had previously contravened the law."
"Importantly, the Commission wrote to Telstra last week seeking a response to Commission concerns about Telstra's new churn arrangements that came into effect from 28 September 1998."
"The Commission is also presently considering industry's comments on the changes to the transfer process. Once we have had an opportunity to consider these comments and Telstra's response, the Commission will consider whether there has been a further breach of the Competition Rule, which prohibits anti-competitive conduct in telecommunications markets."
Telstra originally imposed the customer transfer process on 4 August 1997. Shortly thereafter the ACCC received several complaints from industry. Complainants were concerned about the transfer conditions imposed by Telstra and its continued refusal to negotiate on terms and conditions.
Commissioner Shogren said he was disappointed that, in introducing the new churn arrangements on 28 September, Telstra had imposed a new cost structure without any consultation with industry.
"Normally, the Commission would expect there would be discussion about such matters which affect other service providers."