Telstra has revealed the addition of almost one million new mobile services in the six months to December 2011, but Sensis revenues plummeted 24 percent in 12 months.
It also concluded that Telstra's cost model was likely to "overstate costs in rural areas and thereby support a much higher average charge for the service than is likely to be efficient."
Had the ACT ruled in favour of Telstra then all access seekers using the ULL would have been forced to pay Telstra this price. Now, the price will be determined by negotiation between Telstra and each access seeker individually and where agreement cannot be reached, by ACCC determination following notification of an access dispute. The ACCC is currently arbitrating nine access disputes relating to monthly charges for the ULLS.
The ULLS service is not, however the primary means for Telstra's competitors to deliver broadband: most use the line sharing service in which the line continues to be used to provide the standard telephone service, either direct from Telstra or by resale from another service provider.
The ACT's decision has been welcomed by Optus and by the CCC, which represents a number or smaller competitors to Telstra. The CCC said that Telstra's credibility was "in tatters" as result of the decision. CCC executive director, David Forman, said: "It is no wonder that Telstra seems so desperate to force the Government into a secret deal for a fibre to the node investment instead of taking the advice of the minister and publicly revealing its plans...Every time Telstra's claims about bad regulatory pricing decisions have been tested by an independent umpire in a public process, they have been rejected."
An Optus spokesperson said: "The ACCC rightly rejected Telstra's ambit claim to nearly double ULLS prices in a bid to stifle competition. And now the regulator's referee, the ACT, has confirmed the ACCC's decision...This is a significant decision for competition and is in the best interests of Australian consumers. It is a clear demonstration of why Telstra should not be allowed to bully its way past the ACCC on FTTN access prices. Its reported $85 FTTN access price is another ambit claim that should be rejected."
Other than to submit the ACCC's press release to the ASX, Telstra has yet to comment on the ACT's ruling.
This week also the ACCC has announced plans to review its definition of the ULL service. At present it is primarily a service for access to the copper loop from the exchange to the customer. However there is some uncertainty about this, and if a competitive fibre to the node network were to be rolled out, access would be need at the nodes, and possibly other points. The ACCC's review will seek submissions on these options.
David Bass
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