The Australian Competition and Consumer Commission today issued a draft information paper on the bundling* of services in the telecommunications industry, seeking comments from industry.
"Bundling provides many benefits to consumers but also risks creating a climate for anti-competitive conduct by suppliers of services", Acting ACCC Chairman, Mr Ross Jones, said today.
"In this draft paper, the ACCC outlines its proposed approach to examining bundling of services to determine the effect on competition.
"The ACCC has noted growing concerns that bundling may have significant implications for telecommunications markets, particularly markets for developing services such as broadband".
The draft information paper sets out the approach the ACCC is likely to follow when assessing whether bundling conduct in the telecommunications industry is anti-competitive. This would involve consideration of the level of discounts and relative importance for bundling in relevant markets.
While noting that bundling of telecommunications services may lead to anti-competitive conduct, Mr Jones said that in many circumstances bundling may be beneficial for consumers.
"Benefits include lower prices for telecommunications services and having all services supplied on one bill.
"Bundling will be assessed on a case-by-case basis, taking into account competition in the relevant markets and the price terms and conditions for the bundle.
"This was the approach taken by the ACCC in its recent investigation of Telstra's bundling of pay TV and telephony services".
The draft paper also considers the importance of the ACCC having the relevant information for monitoring and investigating bundling conduct and proposes the use of record keeping rules to obtain such information.
"Having sufficient information will facilitate successful monitoring, and investigation, of bundling conduct".
The ACCC intends to extend the use of its information collection and monitoring powers to monitor bundling in telecommunications markets.
The draft information paper and accompanying technical reports by n/e/r/a will be available on the ACCC web site. The ACCC invites submissions on its proposed approach to assessing bundling conduct by 7 February 2003.