ACCC issues interim and final determinations on access

The Australian Competition and Consumer Commission has, since October 2000, made a further two final and seven interim determinations in its arbitration of various disputes over access to Telstra's fixed line telephone network. This follows the ACCC's two earlier final determinations on interconnection to Telstra's Public Switched Telephone Network service, made in September 2000, which Telstra has appealed to the Australian Competition Tribunal.

The ACCC has also issued a further two interim determinations on access by Telstra to other carriers' fixed networks. A further four arbitrations were able to be resolved by the parties and were accordingly withdrawn.

Recent determinations covering access to Telstra's network concern a dispute relating to the digital data access service and a dispute relating to PSTN originating access, where final determinations were made: four disputes relating to the local call carriage (resale) service; and three disputes relating to the unconditioned local loop service, where interim determinations were made.

The digital data access service provides for the carriage of high speed data from service providers to customers connected on the Telstra network, and is particularly suited to large data applications such as those used by larger corporate users. PSTN originating and terminating access is primarily used to provide competing long-distance and fixed-to-mobile services, and also services to ISPs.

The local call carriage service is used to provide local calls on Telstra's network by competitors, and the unconditioned local loop service is used by service providers to lease a Telstra line between the customer and an exchange in order to provide broadband and other services to that customer.

The ACCC's determinations relate to bilateral. The details of the determinations are private and confidential to the parties. "The ACCC's issuing of final and interim determinations on a wide range of disputes demonstrates the steady progress being made by the ACCC to deal with the large number of arbitrations currently before it", ACCC Acting Chairman, Mr Rod Shogren, said today.

"Notwithstanding this progress and the increasing number of disputes that are being settled by the parties with the assistance of the ACCC, it is disappointing, to see the continuing high level of disputation in the telecommunications industry", Mr Shogren said.

"Although a total of 13 determinations (interim or final) have been issued by the ACCC since September 2000, the ACCC still has further arbitrations waiting to be determined and is progressing these as quickly as possible. Five new disputes were notified to the ACCC in December 2000".

The five new notifications are separately listed in an attachment to this release. The attachment also lists each of the disputes where final or interim determinations have been made, or where the dispute was settled between the parties, since September 2000.

In progressing the arbitrations, the ACCC has continued to make use of its interim determination power. This power was introduced into the Trade Practices Act 1974 in 1999 to overcome concerns about possible incentives for carriers to obstruct commercial negotiations because of superior negotiating positions, and a realisation that complex arbitrations involving a range of both price and non-price terms and conditions would take some time to complete.

Arbitrations finalised since September 2000

Interim Determinations made since September 2000

New arbitrations notified to the ACCC since 1 December 2000

* notification made under Part 21 of the Telecommunications Act 1997