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.
The ACCC has issued a draft decision rejecting Telstra's proposed
pricing for the Unconditioned Local Loop Service (ULLS) and Line
Sharing Service (LSS) monthly charges contained in Telstra's access
undertakings. The ACCC has formed a preliminary view that, on any
reasonable basis of cost and cost recovery approach, the charges
specified in the undertakings are too high. It says that "Even on the
basis of revised demand estimates provided by Telstra, reasonable
prices for the monthly access charges for both services are materially
lower than those previously considered by the ACCC and proposed in the
new undertakings...Overall, Telstra's proposed prices do not reflect
the efficient costs of supplying the services and therefore are not
reasonable. The proposed prices will not promote competition, and are
likely to discourage efficient investment in and use of infrastructure
by both Telstra and access seekers".
Telstra proposed the following ULLS monthly charges: Band 1 $13; Band 2
- $22; Band 3 - $40; Band 4 - $100. Telstra proposes an LSS monthly
charge of $9. The ACCC says it will issue a draft decision relating to
the assessment of the ULLS and the LSS connection/disconnection charges
"shortly".
The draft decision and other related documents are available here.
David Bass
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