Telstra is proposing that prices be determined using a retail price minus retail costs approach. All other submissions - from Optus, AAPT, Macquarie, Vocus and law firm Herbert Geer on behalf of iiNet, Internode, TransACT, Primus and Adam Internet - call for a cost-based pricing determination using the building block model that the ACCC adopted, in 2010 after much discussion, for pricing other fixed line services.
The discussion paper sought input on:
- the appropriate structure and level of pricing for the wholesale ADSL service;
- which terms of access should be addressed in the final access determination, and how these terms should be addressed;
- whether the final access determination should limit the application of the declaration to certain providers or to certain geographic regions.
In the meantime the ACCC set interim prices that to apply for the next 12 months of $25.40 per end user per month in zone 1 (predominantly metropolitan and CBD areas) and $30.80 in zone 2 (predominantly regional and rural areas).
The monthly charge for an aggregating virtual circuit or virtual LAN that wholesalers will need to get their traffic to and from Telstra's DSLAMs was set at $45.50 per month per Mbps of bandwidth to 30 June 2012 and $33.65 per Mbps from 1 July 2012.
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