The Australian Competition and Consumer Commission has commenced a public inquiry into varying the geographic exemptions from regulation for the:
- Wholesale Line Rental (WLR)
- Local Carriage Service (LCS), and
- PSTN Originating Access (PSTN OA) services.
At the time of making final access determinations for these resale services in July 2011, the ACCC foreshadowed that it would conduct a public inquiry on varying the final access determinations in relation to the exemption provisions.
The ACCC indicated further consultation on the exemption provisions was necessary as submissions to the ACCC’s inquiry into making the final access determinations raised complex issues which require further investigation and consideration.
ACCC chairman Mr Rod Sims said the exemption provisions in the final access determinations effectively deregulate certain CBD and metropolitan exchange service areas.
The effect of these provisions is that Telstra and other carriers providing these resale services are free to set their own price and non-price terms and conditions for these resale services, which may differ from the regulated price and non-price terms and conditions set by the ACCC. In addition, there is no obligation on Telstra or other carriers to supply these resale services in the exempt areas.
"Geographic areas become exempt when certain conditions for the competitive supply of resale services have been met," Mr Sims said.
"This public inquiry will seek submissions from interested parties on whether the exemption provisions in the final access determinations should be varied, revoked or maintained."
To assist interested parties, the ACCC has prepared an issues paper that sets out background information and highlights the key issues for the inquiry. It includes the ACCC’s preliminary view and questions on which the ACCC is seeking submissions.
The ACCC invites submissions from interested parties by no later than 5 pm on 30 September 2011. The issues paper will be available on the ACCC’s website: www.accc.gov.au via the latest consultation links.