ACCC rejects Telstra's ULLS & LSS prices

Stuart Corner
Saturday, 10 September 2005 15:20

IT Policy - Regulation

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.