The Australian Competition and Consumer Commission welcomes the release of the Government's proposals to amend the telecommunications provisions of the Trade Practices Act 1974.
"Effective measures to counter anti-competitive conduct and a strong access regime are important elements in the development of a competitive telecommunications market", ACCC Chairman, Professor Allan Fels, said.
Telstra's level of market power and vertical integration across the provision of network, wholesale and retail services continue to provide significant regulatory challenges.
"The Government's proposal to make appeal rights on ACCC access pricing decisions in arbitrations more consistent with common regulatory practice will significantly improve the speed with which these disputes can be finalised", he said. "Telstra has consistently used the appeals process to delay the achievement of pro-competitive outcomes at a high cost to the industry and to consumers".
The ACCC strongly supports measures that will provide more information about prices and other conditions for core telecommunications services to the market.
"This is an important step in addressing inadequate information for those seeking access from Telstra. Over the past few months the ACCC has been working hard to increase the level of information in the market place. In early April it issued indicative prices for local carriage services and the unconditioned local loop service based on information gleaned during the extensive arbitration processes of the past few years.
"The ACCC is thus well positioned to respond quickly to the Government's request for it to develop benchmark terms and conditions for core services and to increase information available to the market".
The ACCC supports the proposal to broaden its exemption powers and enabling it accept ex ante investment undertakings. These proposals will provide the opportunity for carriers to obtain greater certainty in an appropriately transparent process when they are making investment decisions.
"The ACCC has been concerned for some time with the existing Regulatory Accounting Framework which requires Telstra and some other carriers to provide a range of information to assist the ACCC carrying out its regulatory role. The RAF is an information and reporting framework and cannot require Telstra to actually implement a full accounting separation of retail and wholesale units. This is exemplified by the absence of any real transfer pricing mechanism between Telstra's wholesale and retail divisions.
"The ACCC is pleased that the Government's proposals will continue to keep the focus of the regime on promoting the long term interests of end users with an appropriate balance of competition and investment concerns. A streamlined access regime with improved information flows will continue to enhance this objective".