Telstra's structural separation undertaking

Telstra identified that its existing systems and processes for handling service qualification (SQ) and the provisioning of orders for ADSL services, and the LSS for wholesale customers, may not be delivering equivalent outcomes for Telstra’s Retail business units and its wholesale customers.

For certain types of ADSL SQ queries returning an ‘excess transmission loss’ result (which means an ADSL service cannot be provisioned over the copper path), where the SQ query was made by Telstra Retail then Telstra’s SQ systems and processes will search for an alternate copper path that may able to supply an ADSL service. However, in the same circumstances, where an ADSL or LSS SQ query is made by a Telstra wholesale customer the SQ systems and processes will not search for alternate paths.

This means there is the potential for instances where Telstra Retail may have been able to supply an ADSL service where Telstra wholesale requests have shown that the ADSL or LSS service is unavailable.

The issue only relates to SQ queries using the end-user’s full national number (FNN). SQ queries using the end-user’s address are not affected.

Telstra submitted a rectification proposal to the ACCC that outlines the steps it proposes to take to remedy the possible breach.

The ACCC provided summary versions of the rectification proposal to wholesale customers via its Wholesale Telecommunications Consultative Forum (WTCF) mailing list.

Following stakeholder consultation, the ACCC accepted a revised version of the rectification proposal on 24 September 2014. The ACCC accepted the rectification proposal because it will mean that Telstra’s retail operations and Telstra’s wholesale customers will receive equivalent outcomes whether they conduct service qualification queries on the basis of an end-user’s full national number (FNN) or address.