The Australian Competition and Consumer Commission has made an interim access determination for the declared local bitstream access service (LBAS) and is seeking comment on the proposed final access determination.
The LBAS is a wholesale access service for fixed line networks that are built or upgraded after January 2011. It does not apply to the NBN or to wireless or satellite networks. The ACCC declared the LBAS in February.
The LBAS is a 'last mile' fixed line service provided to residences and small business where the download transmission rate is superfast (25 megabit per second (Mbps) or faster). The interim access determination contains both price and non-price terms and conditions for a wholesale non-NBN 25/5 Mbps service.
The interim access determination sets a price ceiling of $27 per service per month. This price was set by benchmarking against the NBN Co wholesale broadband agreement price for a similar service. The interim access determination also sets out non-price terms and conditions of access to provide a base set of terms if parties cannot come to a commercial agreement.
"The ACCC's preliminary view is that the proposed benchmark pricing approach is appropriate, given the limited number of services that are currently subject to the declaration," ACCC Commissioner Ed Willett said.
The ACCC is also releasing its proposal for the final access determination for the LBAS. The ACCC proposes to use the same approach in the final access determination as it has used in the interim access determination. The LBAS price would be benchmarked against the regulated pricing for NBN Co, once that regulated pricing is finalised.
The ACCC has also proposed that the final access determination contain the same non-price terms and conditions as the interim access determination.
"The provisions of the interim access determination and the proposal for the final access determination mean that there will be similar terms and conditions for access by retailers providing broadband services to consumers and small businesses irrespective of whether that is on an NBN or non-NBN network," Mr Willett said.
Due to the timing of the finalisation of NBN Co regulated pricing, the ACCC will not make the LBAS final access determination within the required 6 month time period from the commencement of its public inquiry. Therefore, the ACCC is extending the public inquiry by 6 months, until 24 February 2013.
The ACCC seeks submissions from industry on its proposed approach for the final access determination, particularly on:
- The appropriateness of the benchmarking pricing methodology
- The duration of the final access determination, and
- The appropriate non-price terms and conditions to be included in the final access determination.
Parties with an interest in the final access determination are invited to make submissions by 3 August 2012.