The Australian Competition and Consumer Commission today issued its determination on the price new carriers must pay for interconnection with Telstras network from 1 July 1997.

Prices of interconnection have been reduced on average by about 35 per cent. This determination affirms the reduction in usage charges for interconnection detailed in the Commissions draft determination issued on 11 June 1997.

"The determination should not be seen as mandating prices for interconnect for all players, nor should it be seen as dictating interconnect prices over the long term," ACCC Commissioner, Mr Rod Shogren, said today. "Access pricing outcomes will most likely be primarily determined through commercial negotiations in the long-term. As such, this determination does not imply that all access seekers should pay the same price for interconnection in the future."

Persons wishing to reserve their right to make a request for connection under the terms and conditions in the ACCC's determination under section 41 must advise the ACCC in writing of this before July 1 1997. Before making such a request, the ACCC advises persons to be fully aware of the implications of such a request as specified in the relevant legislation.

The main usage charges for interconnection have been reduced for capital cities to 2.84 cents per minute in peak periods and to 1.34 cents per minute in off-peak periods. These charges are a slight increase on the usage charges specified in the draft determination based on some revisions in light of further information. The charges are for Telstras National Access service which is currently used by a number of switched service providers to connect to, and provide services using, Telstras network.

The determination also reduces the charges service providers must pay for non-code access. The availability of non-code access, which allows customers to select a service provider without the necessity to dial an override code, will likely enhance competition.

"This determination will encourage competition in the provision of telecommunications services by allowing new players to compete effectively with existing carriers," Mr Shogren said. "This is likely to benefit consumers through lower prices and improved service quality."

This determination, made under section 41 of the Telecommunications (Transitional Provisions and Consequential Amendments) Act 1997, will apply until 31 December 1997 (or to a later date as determined by the Commission).

Copies of the determination can be accessed from the Commissions Internet website http://www.accc.gov.au or from Graeme Woodbridge (03) 92901859.

Further information Mr. Rod Shogren, Commissioner, (06) 2641415 or (0414) 613 521 Ms Lin Enright, Director, Public Relations, (06) 264 2808