The Australian Competition and Consumer Commission has issued a draft final access determination for the declared domestic transmission capacity service (DTCS).
“The DTCS is a high capacity wholesale transmission service which is an essential input for a range of communication services to end-users. It is important that access to the DTCS is available on reasonable terms,” ACCC Chairman Rod Sims said.
The price terms of the draft final access determination are based on a domestic benchmarking approach using a linear regression model. The model uses prices on competitive routes to predict the prices that would be expected for declared routes if these routes were priced competitively by the market.
“This is the first time the ACCC has determined price terms for the domestic transmission capacity service using an advanced statistical model,” Mr Sims said.
“The ACCC considers that this pricing approach reflects the complex relationships between the different factors affecting the price of transmission services.”
The draft DTCS final access determination also includes non-price terms of access and proposes an expiry date for the final access determination.
The ACCC invites submissions on the draft DTCS final access determination until 27 January 2012. The ACCC will seek to issue the final DTCS final access determination by the end of February 2012.