ACCC issues Telstra accounting separation report for September quarter 2005

29 December 2005

The Australian Competition and Consumer Commission today issued its ninth imputation testing and non-price terms and conditions report under the enhanced accounting separation regime for Telstra. The report presents data for the quarter ending 30 September 2005.

The report presents key performance indicators that compare Telstra's customer service performance in meeting certain non-price terms and conditions for its wholesale and retail customers. Key performance indicators for fixed-line telephony and ADSL services are reported. The report does not reveal any systematic discrimination by Telstra against its wholesale customers.

The report also presents an imputation analysis that compares Telstra's retail prices to the prices of three core* telecommunications access services. The analysis is designed to give an indication whether there is likely to be sufficient margins between Telstra's retail prices and the prices it charges other service providers to use the core services (plus related costs) to allow efficient firms to compete at the retail level. The analysis is not intended to detect all forms of potentially anti-competitive conduct.

The results for fixed-line voice services show that margins improved slightly, although negative imputed margins were again reported for local services (line rental and local calls combined). There was a clear positive margin across the bundle of fixed telephony services.

The results for services supplied over the unconditioned local loop core service (ULLS) show that these margins improved, although they remain negative except when the ULL is used to supply a bundle of ADSL and voice services to business customers.

Overall, there was little change in Telstra's performance against the key performance indicators and in the reported imputed margins for the September quarter.

The report will be available on the ACCC website.

*The three core access services are the local carriage service, the PSTN originating and terminating access service and the unconditioned local loop service (ULLS). The ULLS allows a competitor to lease the use of the customer's line to supply any combination of access, voice, ADSL or other data services.

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Release number: 
MR 335/05
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