Stuart Corner
Monday, 09 October 2006 11:47
Opinion and Analysis
Page 2 of 4
However Telstra has invested $1billion in its Next G network with no certainty that the ACCC will not open this up to competitor access and set prices for that access. In stating this risk Telstra makes to attempt to explain the nature of the process or its assessment of the level of risk. Rather it invests the ACCC with an element of arbitrariness.
"A key part of Telstra’s transformation strategy involves deploying next generation networks, including its new Next G wireless network. The ACCC may hold a public inquiry at any time into whether compulsory competitor access to this network should be required. Telstra believes such compulsory competitor access would not be appropriate because of the wide availability of competing wireless networks."
While this is true, under the legislation the ACCC must follow strict rules in making any such decision. It must assess if providing competitor access (a process known as 'declaration') would promote the long term interests of end users of services provided by the underlying declared service.
Part XIC of the Trade Practices Act requires the ACCC to consider three factors and three factors only in making this assessment:
- promoting competition in the market for 'listed' services;
- achieving any to any connectivity between end users of services;
- encouraging the economically efficient use of and investment in the infrastructure by which carriage services are provided.
