The Australian Competition and Consumer Commission has issued the Draft MTAS Pricing Principles Determination relevant for 1 July 2007 to 31 December 2008. The current MTAS Pricing Principles Determination will expire on 30 June 2007.
The Trade Practices Act 1974 requires the Commission to have regard to a pricing principles determination if the Commission is required to arbitrate a MTAS access dispute.
The Draft MTAS Pricing Principles Determination proposes an indicative price for the MTAS of 9 cents per minute from 1 July 2007 to 31 December 2008.
The indicative prices have been informed by among other things, the WIK Model.
To date the benefits for consumers and business derived from lower MTAS prices have manifest in lower retail prices for mobile services and especially lower FTM rates, which the ACCC considers is an important step in enhancing competition in this market. The ACCC notes that while the reductions in FTM retail rates to date have been positive there is still opportunity for integrated operators such as Telstra and Optus to reduce retail FTM prices further particularly for residential end-users in line with reductions in MTAS.
The Draft MTAS Pricing Principles Determination, the accompanying Discussion Paper and other supporting material will be available on the ACCC's website. Details on how interested parties can also obtain the WIK Model will also be on the ACCC website.
The ACCC is now seeking submissions from interested parties on issues as set out in the Discussion Paper by no later than AEST 9 a.m. Monday 6 August 2007.