The Australian Competition and Consumer Commission today announced its final decision in relation to the Vodafone access undertaking to supply its Mobile Terminating Access Service on its second generation GSM network.
"The ACCC has rejected this undertaking because it considers that the terms and conditions contained within it are not reasonable", ACCC Commissioner, Mr Ed Willett, said today.
Vodafone's price terms proposed that the access price of the MTAS on its 2G network should trend toward a 'target' price of 16.15 cents per minute over the period 2005 – 2007. These prices terms are based on cost modelling undertaken by consultants on Vodafone's behalf.
"The ACCC has a number of concerns with Vodafone's methodology which have led it to the conclusion that Vodafone's proposed prices for its MTAS are likely to significantly overstate the efficient costs of providing the service in Australia", Mr Willett said.
"Even if the ACCC had found the methodology was appropriate, it would not have accepted the undertaking. In addition to conceptual, methodological and empirical concerns, the ACCC has further concerns with some of the specific requirements on fixed-network operators to pass-through changes in the MTAS price to end-users making fixed-to-mobile calls".
Copies of the ACCC's final report and other documentation relevant to the access undertaking (including the undertaking, Vodafone's supporting submissions and other material) will be available on the ACCC website.
The ACCC notes that seven access disputes in relation to Vodafone's supply of the MTAS are currently the subject of dispute resolution procedures set down Division 8, Part XIC of the Trade Practices Act 1974. These arbitrations are continuing.