ACCC seeks views on Telstra's news PSTN access prices

Stuart Corner
Thursday, 04 May 2006 19:57

IT Policy - Regulation

The Australian Competition and Consumer Commission (ACCC) has issued its discussion paper on Telstra's latest PSTN originating and terminating access and local call service undertakings.
elevant supporting material in late March 2006, involve a reduction in the headline local call service prices by some 32 percent and an increase in the headline PSTN originating and terminating access prices – which more than doubles the per minute charge.

The undertakings maintain a geographically de-averaged approach to the way charges are levied, albeit to a reduced extent compared to past undertakings. For most originating traffic on the PSTN, Telstra is also proposing a two-part tariff made up of a fixed monthly fee on a per customer basis and an associated lower per minute component. Terminating traffic will have no fixed charge but a relatively higher per minute charge.

Telstra claims these changes to pricing result from the need to recover costs and from a decline in the use of the traditional fixed network which have led to higher per minute charges.

"Telstra's proposal involves a substantial restructuring of the pricing structure for fixed network services which will require detailed consideration", ACCC chairman, Graeme Samuel, said. "While the ACCC will seek to expedite its consideration of these undertakings as far as possible, its consideration of these matters is unlikely to be concluded by 30 June.

Samuel said that other carriers were free to commercially negotiate their arrangements for these services. "However, the ACCC would be concerned if Telstra pre-emptively or unilaterally changed the pricing structures of these services to competitors prior to the ACCC having had the opportunity to fully assess the proposed undertakings within the time-frames under the Trade Practices Act".