Telstra has lodged a draft undertaking with the Australian Competition and Consumer Commission. The undertaking specifies the prices Telstra proposes to charge other carriers for interconnection with its fixed-line and mobile phone networks.
The terms and conditions Telstra charges other carriers for interconnection to its networks will have important implications for the development of competition in the industry and will ultimately affect the prices consumers pay for telecommunications services, Mr Rod Shogren, Commissioner responsible for telecommunications, said today.
Under the Trade Practices Act, the ACCC is responsible for determining whether the terms and conditions in Telstras undertaking are reasonable.
The undertaking, if accepted by the ACCC, will determine the terms and conditions on which other carriers obtain interconnection to Telstras networks in the absence of commercial agreement between the parties.
The ACCC intends to make a full and detailed assessment of the undertaking in an open public process.
Telstras draft undertaking specifies the terms and conditions for the origination and termination of calls on its fixed-line and GSM (mobile) networks, as well as the resale of AMPS (mobile) calls. The undertaking covers a period of three years.
Interconnection prices can have important implications for investment and competition in the industry.
On the one hand, interconnection prices must be sufficient to encourage Telstra and other carriers to continue to invest in infrastructure to support competition and to provide and develop services for end-users. On the other hand, the price must be low enough to allow other providers to compete with Telstra in the provision of services to customers.
It is through competition that many of the gains to consumers through lower prices, improved service quality and a greater range of services will be achieved, Mr Shogren said.
A lot can be learned from recent experience overseas and recent history in Australia. The ACCC intends to complete a detailed study of the prices in the undertaking, which will include scrutiny of the costs of using Telstras networks. In conjunction with the information provided in the public process, this will assist the ACCC in making its decision.
For further information about this media release: Mr Rod Shogren, Commissioner, mobile (0414) 613 521 Ms Lin Enright, Director, Public Relations, (02) 6243 1108
The terms and conditions Telstra charges other carriers for interconnection to its networks will have important implications for the development of competition in the industry and will ultimately affect the prices consumers pay for telecommunications services, Mr Rod Shogren, Commissioner responsible for telecommunications, said today.
Under the Trade Practices Act, the ACCC is responsible for determining whether the terms and conditions in Telstras undertaking are reasonable.
The undertaking, if accepted by the ACCC, will determine the terms and conditions on which other carriers obtain interconnection to Telstras networks in the absence of commercial agreement between the parties.
The ACCC intends to make a full and detailed assessment of the undertaking in an open public process.
Telstras draft undertaking specifies the terms and conditions for the origination and termination of calls on its fixed-line and GSM (mobile) networks, as well as the resale of AMPS (mobile) calls. The undertaking covers a period of three years.
Interconnection prices can have important implications for investment and competition in the industry.
On the one hand, interconnection prices must be sufficient to encourage Telstra and other carriers to continue to invest in infrastructure to support competition and to provide and develop services for end-users. On the other hand, the price must be low enough to allow other providers to compete with Telstra in the provision of services to customers.
It is through competition that many of the gains to consumers through lower prices, improved service quality and a greater range of services will be achieved, Mr Shogren said.
A lot can be learned from recent experience overseas and recent history in Australia. The ACCC intends to complete a detailed study of the prices in the undertaking, which will include scrutiny of the costs of using Telstras networks. In conjunction with the information provided in the public process, this will assist the ACCC in making its decision.
For further information about this media release: Mr Rod Shogren, Commissioner, mobile (0414) 613 521 Ms Lin Enright, Director, Public Relations, (02) 6243 1108