The Australian Competition and Consumer Commission today issued a discussion paper as part of its inquiry into whether line-sharing of telecommunications services should be regulated under the Trade Practices Act 1974.
Line-sharing is where two different telecommunications carriers simultaneously provide separate services over a single line, typically voice and data services.
"This would mean consumers could receive a wide variety of services from two different carriers at the same time, without needing to install a second line", ACCC Acting Chairman, Mr Rod Shogren, said.
"There may be one provider for telephone calls and another for Internet access, both services being delivered via an existing line".
The paper aims to generate discussion about issues arising from regulation of line-sharing - in particular, whether the ACCC should make a 'declaration' requiring Telstra and other access providers to open their lines up to sharing.
"Declaring line-sharing would mean an access provider would be obliged to provide access to relevant parts of its network to others who want to provide services in combination with it. The ACCC can be asked to arbitrate the price for such access if parties fail to negotiate a price on their own.
"In the ACCC's experience, declaration can lead to lower prices for telecommunications services consumers while providing a greater choice of new and innovative services. Whether similar regulation of line-sharing would lead to these benefits for voice and data services consumers is a key consideration of this inquiry.
"Access to high quality data services is increasingly important in people's lives as the Internet and other new technologies are taken up".
Mr Shogren noted that Telstra has indicated willingness to provide line-sharing services to its competitors by the second quarter of 2002. If the terms and conditions proposed by Telstra were considered reasonable, the need to make a declaration formally regulating line-sharing arrangements would be lessened.
"In deciding whether to declare line-sharing, the ACCC must consider the long-term interests of end-users. In determining whether it is in the long-term interest of end-users, it will be particularly mindful of the effect of a declaration on competition in both voice and high-speed data markets, and the implications for investment", he said.
The ACCC invites comments on the discussion paper from industry, consumer groups and interested members of the public. They have until 23 November 2001 to make submissions.
After considering the submissions, the ACCC expects to issue a draft report quickly and at least by February 2001. Interested parties will be given an opportunity to make comments on the draft before it is finalised.
Copies of the discussion paper are available from the ACCC website.