ACCC confirms ULLS pricing decisions

Stuart Corner
Sunday, 29 October 2006 13:22

IT Policy - Regulation

The ACCC has confirmed that it has set prices in five arbitrations of $17.70 per month in urban areas for the unconditioned local loop service.
The Australian Financial Review reported on August 14, that the ACCC had set a price of $17.70 per month in band 2  (suburban areas) in its arbitration of an access dispute lodged by an unnamed rival of Telstra. Investors took the news badly. Telstra shares opened at $3.70 and fell to $3.64 during the day. Telstra issued a statement to the ASX revealing that the ACCC had also made an interim determination of $7.20 for band 1 (CBD) (currently $13) and $34.20 for band 3 (regional) for that access seeker.

Telstra had been charging around $30 per month regardless of location and had proposed this price in an access undertaking to the ACCC. The ACCC has since rejected that undertaking.

The access seeker was subsequently revealed to be Chime Communications (iiNet) and the determination was later published in full on the ACCC's website.

The ACCC has now confirmed these prices and says it has made the same price determinations in five other access disputes, lodged by Primus, Optus, XYZed (Optus subsidiary providing business-grade DSL services), Request Broadband (PowerTel subsidiary) and PowerTel. A ULLS dispute lodged by Macquarie Telecom is still awaiting a determination.

The interim determinations were all made in mid- to late- August and the charges will apply until either the interim determinations expire, are revoked, or until a final determination is made in each arbitration.