Australian Competition & Consumer Commission (ACCC) released disc...
Australian Competition & Consumer Commission (ACCC) released discussion paper in anticipation of govt.’s release of its telecom legislative package. Paper looks at how ACCC can provide guidance for market participants on prices for access to public switched telephone network…
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(PSTN) originating and terminating services, Unconditioned Local Loop services (ULLS), local carriage services (LCS). Industry comments on how prices should be determined are due Oct. 18. ACCC said comments were part of preparation for pending govt. initiatives that would require it to establish model terms and conditions, including prices, for access to PSTN, ULLS and LCS. Paper doesn’t set prices for those services. ACCC said it planned to develop indicative prices in early 2003 after issues on how such prices should be set were resolved. Commission said indicative prices “would only be used for the purposes of providing information and guidance to the market, and would not be binding in any arbitral processes that may arise.” ACCC Chmn. Allan Fels said he hoped publishing indicative prices would encourage developing more open and transparent telecom industry and let parties reach commercial agreement without need for arbitration: “The ACCC sees indicative prices as being a reference point which will assist parties to resolve any differences encountered when negotiating the terms and conditions of access and will also encourage parties to give undertakings to the ACCC.” He said while any indicative prices published weren’t binding upon parties or ACCC, if disputes were referred to ACCC, they should be resolved more quickly by having published guidelines. Currently, Commission determines PSTN and ULLS access prices on annual basis through use of economic cost modeling. It said undertakings including reasonable terms and conditions could complement establishing of indicative prices by providing long-term certainty and information on pricing of services to marketplace. ACCC said its preliminary approach to setting indicative prices for PSTN and ULLS services would involve using price for first regulatory period, then applying adjustment factor to calculate indicative prices for following 3 regulatory periods.