The Australian Competition and Consumer Commission today issued a position paper outlining a robust framework for the review of existing regulation and the principles which will guide future regulatory decisions.
This represents the next instalment of the ACCC's continuing Fixed Services Review, which was initiated by the ACCC in December 2005.
"The ACCC considers that regulation should be targeted at 'enduring bottlenecks' in fixed-line markets and removed where it is not required to promote the long term interests of end-users," ACCC Chairman, Mr Graeme Samuel, said today.
"This is based on the ACCC's view that where efficient competition between operators that invest in their own infrastructure is more likely to promote outcomes akin to those found in more competitive markets as rivals have a greater ability to differentiate service offerings and control their own supply chain.
"In regions where infrastructure-based competition is unlikely to emerge, the ACCC will consider whether regulation of an end-to-end wholesale service is required, while recognising that there may be more effective regulatory tools to apply".
A key element of the position paper is a robust framework for the review of existing regulation. This is intended to provide certainty to industry on the approach taken by the ACCC, including the timing of future reviews.
"The ACCC has consistently recognised that infrastructure competition in telecommunications markets is likely to emerge unevenly across different geographic regions and that the regulatory regime needs to be flexible enough to adapt to changes in the competitive landscape.
"A key element of the framework is the approach the ACCC will take to geographically delineating markets.
"On these issues, the ACCC will continue to be guided by up-to-date empirical evidence and analysis."
To this end, in March 2007, the ACCC proposed to industry a more systematic collection of empirical information on existing telecommunications infrastructure to inform future analysis about the state of competition in particular regions.
The position paper also commences a declaration inquiry for the Line Sharing Service, which was originally declared in 2002.
The ACCC proposes two separate consultation processes arising from this paper. The first, in relation to the framework for the review of existing declarations, invites written submissions by 30 June 2007. The second, in relation to the current LSS declaration inquiry, invites written submissions by 11 May 2007.
Submissions can be addressed to Ms Nicole Hardy or Mr Carl Toohey, Communications Group, Australian Competition and Consumer Commission, GPO Box 520, Melbourne, Victoria, 3001. In addition to a hard copy, parties making submissions are encouraged to provide an electronic copy of the submission to nicole.hardy@accc.gov.au or carl.toohey@accc.gov.au.