The Australian Competition and Consumer Commission today issued the third of its draft record keeping rules under the accounting separation regime for Telstra. The ACCC is seeking comments from interested parties on the draft rule.
The rule relates to imputation testing on retail services using Telstra's core wholesale services. Imputation testing is used to assist in detecting an anti-competitive price squeeze in a retail market. A price squeeze could occur where Telstra reduces the margin between retail and wholesale prices to a level that inhibits competition.
“The draft rule updates a rule that the ACCC issued last year", an ACCC Commissioner, Mr Ed Willett, said today. "At that time, the ACCC foreshadowed the issuing of a revised rule that would require Telstra to report on the retail ADSL service.
"The purpose of this is to determine whether those providers using the unconditioned local loop service, which is a wholesale service used to gain direct access to Telstra's copper network, would be able to viably provide broadband services.
"This is different from the ACCC's investigation into wholesale ADSL pricing, which is currently subject to a Competition Notice. That investigation relates to the retail pricing of the service for competitors who resell Telstra’s ADSL wholesale service".
Comments on the draft rule should be provided by no later than 5 p.m. on Wednesday 22 September 2004 and addressed to: Mr Sean Riordan, Acting Director, Telecommunications, Australian Competition and Consumer Commission, GPO Box 520J, Melbourne VIC 3001 or by email to sean.riordan@accc.gov.au.