The Australian Competition and Consumer Commission has called for tenders for the development of a fixed network services cost model to inform its regulatory decisions in the future.
"The ACCC has always been open to considering reasonable cost models developed by industry," ACCC Chairman, Mr Graeme Samuel, said today.
"However, the continuing inadequacy of industry's models has led us to the view that the ACCC needs to have its own cost models. This would assist the ACCC in its decision making on all regulated fixed services such as the ULLS, PSTN OTA services, LSS and LCS which are important to the competitive provision of a range of services including broadband services."
Tenderers are asked to bid on the development of an engineering-economics model that estimates the efficient, forward-looking costs of supplying services on Australia's fixed telecommunications network.
In 2006, the ACCC engaged international consultants WIK-Consult to construct a mobile network and cost model for the supply of the mobile terminating access service, and is now consulting with interested parties in relation to this model.
"The development of the fixed network services cost model is the next step in the ACCC's cost model development process," Mr Samuel said.
The ACCC will consult with interested parties at relevant stages in the development of the cost model and its use in regulatory decision-making processes.