The Australian Competition and Consumer Commission today issued a discussion paper on Telstra's new interconnection undertaking.

The undertaking, lodged with the ACCC on 24 September 1999, specifies the prices Telstra proposes to charge other carriers for interconnection with its fixed-line (PSTN) phone network. The undertaking proposes a headline rate of 2.3 cents per minute for 1999-2000 and 2.0cents per minute for 2000-2001.

Under the Trade Practices Act, the ACCC must accept or reject the undertaking based on whether the terms and conditions are reasonable.

"The undertaking, if accepted by the ACCC, will determine the terms and conditions on which other carriers obtain interconnection to Telstra's network in the absence of commercial agreement between the parties," ACCC Commissioner responsible for telecommunications, Mr Rod Shogren, said today.

"The ACCC intends to assess the undertaking in an open public process. All available information will be taken into account, including relevant material provided in the assessment of Telstra's previous undertaking, the effects of the changes to Telstra's price caps and the company's ability to achieve cost reductions over time".

Telstra has indicated to the ACCC that it considers that an expeditious consideration of the undertaking would best serve the interests of all those in the industry.

The ACCC intends to assess the undertaking under a tight timeframe and seeks comments on the undertaking by 12 November 1999.

Copies of the undertaking together with the discussion paper will be available on the ACCC web site early next week. The ACCC invites submissions on any aspect of the undertaking. During the period of the assessment of the undertaking, parties are free to continue to negotiate access to the services to which the undertaking would apply. If the parties are unable to reach agreement, the ACCC's powers to arbitrate disputes are not limited during the assessment period.