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Telecommunications It's final: ACCC rejects Vodafone mobile termination prices
Telecommunications It's final: ACCC rejects Vodafone mobile termination prices | It's final: ACCC rejects Vodafone mobile termination prices |
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| by Stuart Corner | |
| Sunday, 02 April 2006 | |
  
The final decision confirms that made by the ACCC in its draft decision issued on 22 December 2005. The ACCC received submissions to the draft from the Competitive Carriers' Coalition (CCC), Telstra and Vodafone. The ACCC says that Vodafone submitted a large volume of material to support its view that the price terms and conditions set out in its undertaking were reasonable. These included four expert reports prepared on its behalf (two by Frontier, one by PwC and one by NERA). The ACCC, however, was unmoved by Vodafone's arguments. The ACCC's pricing principles suggested that the price of the MTAS should trend towards 12 cents per minute over the period from 1 July 2004 to 30 June 2007. Vodafone was proposing a phased reduction in prices to 16.15 cents per minute from 1 January 2007 onwards. Vodafone was also proposing a 'fixed-to-mobile (FTM) pass-through safeguard' that would have required the reduction in costs paid by other service providers to terminate calls on Vodafone's network being reflected in the prices charged to their retail customers. The ACCC has already arbitrated a number of access disputes brought against Vodafone, and other cellular network operators, over FTM termination prices and has in all cases set prices, on an interim basis, in line with those set out in its pricing principles. |
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