The Australian Competition and Consumer Commission today announced its final decision to accept Telstra and Foxtel's applications which provide up-front certainty about the terms of access to digital pay TV services.
"The ACCC's decision provides increased regulatory certainty for the industry, which should serve the dual purpose of promoting third party access to cable networks and paving the way for Foxtel and Telstra to proceed with their plans to digitise their networks", ACCC Chairman, Mr Graeme Samuel, said today.
"This in turn should benefit consumers by providing the opportunity for more choice in the pay TV service they can receive.
"This is the first time the ACCC has considered an application under new provisions allowing up-front certainty on the terms of access for new telecommunications investment".
The ACCC's decision relates to four applications lodged by Telstra and Foxtel following the ACCC's approval of the Foxtel/Optus/Telstra content supply arrangements in November 2002.
Two of the applications sought approval of access undertakings containing the price and non-price terms and conditions under which third parties can access Telstra's pay TV cable network and Foxtel's set-top units (STUs), as currently provisioned for analogue services.
Mr Samuel said the analogue undertakings cannot be supported in their current form.
"However, the ACCC believes the proposed analogue arrangements would be approved relatively quickly if the undertakings were re-submitted with amendments suggested by the ACCC in its final determination", he said.
Both Telstra and Foxtel have publicly indicated that they are prepared to do this.
The remaining two applications sought an exemption from any future legislative access obligations concerning access to Telstra and Foxtel's proposed digital cable and STU services. These applications flowed directly from the undertakings provided to the ACCC by Telstra and Foxtel in November 2002.
Mr Samuel said the digital exemption was granted subject to a number of important limitations and conditions.
"While the ACCC has granted the exemption, it is conditional on Telstra and Foxtel further strengthening the terms and conditions of access outlined in the November 2002 access undertakings".