| Telstra's $9 line sharing charge rejected |
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| by Stuart Corner | |
| Sunday, 04 June 2006 | |
  
The LSS is used by service providers to supply broadband to their customers on a Telstra phone line simultaneous with that line being used to provide a standard telephone service. Telstra, in an access undertaking, had proposed the monthly price of $9 per line. That access undertaking was rejected by the ACCC in December 2005 and in January Telstra appealed the decision t the ACT. Following the ACT's decision, the price for the LSS will now be determined by agreement between Telstra and individual customers, and where agreement is unable to be reached, by the ACCC following notification of an access dispute. Telstra has made no comment on the decision. The ACT said it was not satisfied that the proposed cost was reasonable having regard to the relevant sections (152AH and 152AB) of the Telecommunications Act. It was also not satisfied that Telstra's method of determining its LSS-specific costs was reasonable and that Telstra's method of levelising and allocating its LSS-specific costs was reasonable. Having reached this conclusion, the ACT said it was not necessary to consider "the extensive issues canvassed as to the composition of Telstra's cost structure". |
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