| ACCC delivers another blow to Telstra |
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| by Stuart Corner | |
| Tuesday, 12 September 2006 | |
  
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PSTN originating and terminating access services are used by carriers that operate their own switches to enable them to receive calls from customers and to deliver calls to dialled PSTN numbers. The local carriage service is used by Telstra's competitors to provide local calls to their customers. It allows competitive entrants to resell local calls without deploying substantial alternative infrastructure. The ACCC's decision takes the form of a draft decision to reject Telstra's access undertakings for these services. The ACCC concluded that the prices proposed in the undertakings would mean a substantial reduction in the headline LCS prices and a substantial increase in the headline PSTN OTA prices, and it said that these proposed prices were not reasonable. ACCC chairman, Graeme Samuel said that Telstra's proposed prices would "represent a fundamental rebalancing of the competitive dynamics in the fixed line services markets, with a doubling of the headline rate for PSTN services. "Telstra's proposed pricing would significantly disadvantage facilities based access seekers, while providing an advantage to resellers of Telstra's end-to-end local call services," according to Samuel. The ACCC said that, on the basis of the information available, it was not satisfied that Telstra's proposed charges were based on reasonable estimates of efficient costs." The ACCC seeks submissions by interested parties on its draft view by no later than 29 September 2006. Telstra lodged the undertakings on 22 March 2006 |
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