The ACCC has commenced consultation on pricing issues for the declared fixed line services.
- Primary prices discussion paper
- Background
- Telstra cost allocation proposal
- Early submissions
- Submissions to discussion paper
- Confidential information
- Technical workshop
- Extension to the consultation period
- Position statement on the treatment of the Telstra-NBN Co arrangements
- Submission of Telstra amended fixed line services model
- Submission on the fixed line services model
- Submission to the position statement
- Submission on fixed line services review
- Request for further information
- Next steps
The ACCC has commenced consultation on primary price issues for the declared fixed line services with the release of a discussion paper which seeks submissions from interested parties.
The ACCC invited submissions by 5:00pm on 3 October 2014.
The ACCC has also released a paper providing additional information on Telstra's cost allocation proposal (further information provided below), and how it relates to the approach taken in the previous fixed line FADs.
| Document title | Published date |
|---|---|
| FAD Inquiry - Primary Price Terms - Discussion Paper - July 2014 ( PDF 1.79 MB | DOCX 305.07 KB ) | 24 July 2014 |
| FAD Inquiry - Additional Information on Cost Allocation - July 2014 ( PDF 550.09 KB | DOCX 144.48 KB ) | 24 July 2014 |
The release of the primary price terms discussion paper is part of the public inquiry into making Final Access Determinations (FADs) for the declared fixed line services which commenced in July 2013. It follows consultation on non-price terms and conditions and supplementary pricing issues for these services. As part of this FAD inquiry, Telstra has provided the ACCC with information requested under Rule 15 of the Building Block Model Record Keeping Rule (BBM RKR). Telstra's BBM RKR response is discussed in the primary price terms discussion paper, and can be found at BBM RKR information collection.
As part of this FAD inquiry, Telstra has provided the ACCC with a proposal for a revised method of allocating its total fixed line costs to the declared services, and two accompanying reports prepared by KPMG.
Telstra's proposal is discussed in the discussion paper, and the ACCC is seeking the views of interested parties on the proposal.
| Document title | Published date |
|---|---|
| Telstra Revised Cost Allocation Framework (Public Version) ( PDF 946.4 KB ) | 24 July 2014 |
| KPMG April Report ( PDF 653.98 KB ) | 24 July 2014 |
| KPMG July Report (public version) ( PDF 2.53 MB ) | 24 July 2014 |
Prior to the commencement of this consultation, the ACCC received three early submissions in relation to primary price issues for the declared fixed line services.
In March 2014, the ACCC received early submissions from Optus and Herbert Geer (on behalf of TPG and iiNet).
On 17 July 2014, the ACCC received a letter from the Minister for Communications and the Minister for Finance in relation to the inquiry.
| Document title | Published date |
|---|---|
| Letter to ACCC from Minister for Communications and Minister for Finance ( PDF 4.03 MB ) | 24 July 2014 |
The ACCC received the following submissions to the primary price terms discussion paper.
The ACCC has received the following confidential submission from Macquarie Telecom.
FSR FAD inquiry – Price and Non Price Terms and Conditions – Macquarie Telecom Submission (19 December 2014) - confidential version. Pdf
Macquarie Telecom
Matthew Healy
National Executive, Industry and Policy
03 9206 6847
mhealy@macquarietelecom.com
The ACCC conducted a technical workshop on 28 August 2014 which provided access seekers the opportunity to seek further information regarding the FLSM, Telstra's cost allocation proposal and its BBM RKR response. Attendance at the workshop was limited to access seekers and consultants to access seekers who had executed confidentiality undertakings.
The ACCC agreed to a request received on 9 September 2014 from Telstra that the due date for submissions to the primary prices discussion paper be extended by one week to 3 October 2014.
The ACCC also agreed to extend the due date for submissions by one week for the domestic transmission capacity service final access determination primary price terms discussion paper.
| Document title | Published date |
|---|---|
| Letter to ACCC from Telstra - submission to Fixed and DTCS FADs ( PDF 141.35 KB ) | 10 September 2014 |
The ACCC has released a statement on how it intends to account for the arrangements between Telstra and NBN Co, regarding the migration of customers to the NBN and NBN Co's use of Telstra's infrastructure, in determining primary prices in this FAD inquiry, in advance of a more comprehensive draft decision.
| Document title | Published date |
|---|---|
| Position statement on the treatment of the Telstra-NBN Co arrangements - October 2014 ( PDF 356.84 KB | DOCX 115.18 KB ) | 22 October 2014 |
Telstra has submitted an amended version of the fixed line services model (FLSM) intended to facilitate the determination of prices for the fixed line services in this FAD inquiry.
Telstra's amended FLSM incorporates Telstra’s proposed cost allocation framework and revised expenditure and demand forecasts, which allow for different assumptions to be made about the rollout of the NBN.
A confidential version of the amended FLSM can be obtained from Telstra under the confidentiality undertakings currently in place.
| Document title | Published date |
|---|---|
| Telstra Submission - Amended FLSM (public version) ( XLSM 2.81 MB ) | 17 December 2014 |
| Telstra Submission - Amended FLSM Documentation (public version) ( PDF 1.58 MB ) | 17 December 2014 |
On 19 December 2014, iiNet submitted amendments to the FLSM in response to the ACCC's current public inquiry relating to making final access determinations for the fixed line services. As part of its submission, iiNet has provided a report from Frontier Economics and a confidential version of its amended FLSM.
| Document title | Published date |
|---|---|
| iiNet letter on amendments to the FLSM ( PDF 217.29 KB ) | 22 December 2014 |
| Frontier Economics December 2014 report for iiNet on amendments to the FLSM ( PDF 607.2 KB ) | 22 December 2014 |
The ACCC received the following submission to the position statement on the treatment of the Telstra-NBN Co arrangements.
| Document title | Published date |
|---|---|
| iiNet submission - Letter to ACCC on NBN payments ( PDF 190.01 KB ) | 8 January 2015 |
| Frontier Economics Report for iiNet submission - Implementing the regulatory values approach ( PDF 729.99 KB ) | 8 January 2015 |
On 17 February 2015, the Competitive Carriers' Coalition and Optus wrote to the ACCC regarding the current consultation process for the fixed line services FAD primary price terms inquiry.
| Document title | Published date |
|---|---|
| Letter to ACCC from CCC and Optus dated 17 February 2015 ( PDF 80.75 KB ) | 13 March 2015 |
The ACCC requested further information from Telstra relevant to the ACCC inquiry to make FADs for the fixed line services on the following dates:
- 18 December 2014
- 14 January 2015
- 12 February 2015.
Telstra responded to the ACCC's requests for further information on the following dates:
- 19 January 2015
- 30 January 2015
- 6 February 2015
- 18 February 2015
- 12 March 2015.
Public versions of these documents are available below. Telstra told the ACCC that it is comfortable with the publication of its correspondence.
Access seekers can obtain confidential versions of the information from Telstra under the confidentiality arrangements in place for the inquiry.
| Document title | Published date |
|---|---|
| Telstra response to ACCC information request 19-1-2015 ( PDF 277.28 KB ) | 30 January 2015 |
| Telstra response to ACCC information request 30-1-2015 ( PDF 558.84 KB ) | 10 February 2015 |
| ACCC request for further information to Telstra 18-12-2014 ( PDF 178.04 KB | DOCX 81.65 KB ) | 13 February 2015 |
| Telstra submission - Amended FLSM documentation (public version) ( PDF 728.07 KB ) | 13 February 2015 |
| ACCC request for further information - 12 February 2015 ( PDF 335.89 KB | DOCX 173.05 KB ) | 18 February 2015 |
| Telstra response to ACCC request - 18 February 2015 ( PDF 92.28 KB ) | 3 March 2015 |
| Letter to ACCC from Telstra dated 12 March 2015 ( PDF 175.04 KB ) | 13 March 2015 |