The Australian Competition and Consumer Commission today released a guide on access pricing principles for the telecommunications industry. The paper outlines the ACCC's approach when considering access pricing issues under Part XIC of the Trade Practices Act.
The pricing principles will assist telecommunications competitors to gain access to each other's networks at reasonable prices to deliver competitive services to consumers. "The principles will provide the scope for carriers and service providers to engage in open competition which will ultimately benefit consumers through improvements in price, quality and the range of services available," the ACCC Commissioner responsible for telecommunications, Mr Rod Shogren, said today.
The release of the pricing principles follows an extensive consultation process after the release of a draft guide in February 1997. Under Part XIC of the Act, the ACCC is required to consider the terms and conditions of access when assessing undertakings by providers of key network services (such as originating and terminating calls) and when arbitrating disputes over access.
The document affirms that the ACCC will use long-run costs as the basis for arbitrating disputes over access pricing in the telecommunications industry. However, the ACCC's role in determining access prices is secondary to commercial negotiations between parties which have the primary responsibility for setting access prices.
"The issuing of these pricing principles provides parties with greater certainty in their commercial negotiations over access," Mr Shogren said.
The pricing principles guide will be available from the ACCC's web site.
Further information Mr Rod Shogren, Commissioner, (06) 2641415 or (0414) 613 521 Ms Lin Enright, Director, Public Relations. (06) 264 2808
The pricing principles will assist telecommunications competitors to gain access to each other's networks at reasonable prices to deliver competitive services to consumers. "The principles will provide the scope for carriers and service providers to engage in open competition which will ultimately benefit consumers through improvements in price, quality and the range of services available," the ACCC Commissioner responsible for telecommunications, Mr Rod Shogren, said today.
The release of the pricing principles follows an extensive consultation process after the release of a draft guide in February 1997. Under Part XIC of the Act, the ACCC is required to consider the terms and conditions of access when assessing undertakings by providers of key network services (such as originating and terminating calls) and when arbitrating disputes over access.
The document affirms that the ACCC will use long-run costs as the basis for arbitrating disputes over access pricing in the telecommunications industry. However, the ACCC's role in determining access prices is secondary to commercial negotiations between parties which have the primary responsibility for setting access prices.
"The issuing of these pricing principles provides parties with greater certainty in their commercial negotiations over access," Mr Shogren said.
The pricing principles guide will be available from the ACCC's web site.
Further information Mr Rod Shogren, Commissioner, (06) 2641415 or (0414) 613 521 Ms Lin Enright, Director, Public Relations. (06) 264 2808