Fixed line services final access determinations inquiry 2013

The ACCC has commenced consultation on primary price issues for the declared fixed line services with the release of a discussion paper which seeks submissions from interested parties.

The ACCC invited submissions by 5 pm on 3 October 2014.

The ACCC has also released a paper providing additional information on Telstra's cost allocation proposal (further information provided), and how it relates to the approach taken in the previous fixed line final access determinations.

The release of the primary price terms discussion paper is part of the public inquiry into making final access determinations for the declared fixed line services which commenced in July 2013. It follows consultation on non-price terms and conditions and supplementary pricing issues for these services. As part of this final access determination inquiry, Telstra has provided the ACCC with information requested under Rule 15 of the Building Block Model record keeping rule.

Telstra's BBM record keeping rule response is discussed in the primary price terms discussion paper, and can be found at BBM record keeping rule information collection.

As part of this c inquiry, Telstra has provided the ACCC with a proposal for a revised method of allocating its total fixed line costs to the declared services, and two accompanying reports prepared by KPMG.

Telstra's proposal is discussed in the discussion paper, and the ACCC is seeking the views of interested parties on the proposal.

Prior to the commencement of this consultation, the ACCC received three early submissions in relation to primary price issues for the declared fixed line services.

In March 2014, the ACCC received early submissions from Optus and Herbert Geer (on behalf of TPG and iiNet).

On 17 July 2014, the ACCC received a letter from the Minister for Communications and the Minister for Finance in relation to the inquiry.

The ACCC received the following submissions to the primary price terms discussion paper.

The ACCC has received the following confidential submission from Macquarie Telecom.

FSR final access determination inquiry – Price and Non Price Terms and Conditions – Macquarie Telecom Submission (19 December 2014) - confidential version.

Macquarie Telecom
Matthew Healy
National Executive, Industry and Policy
03 9206 6847
mhealy@macquarietelecom.com

The ACCC conducted a technical workshop on 28 August 2014 which provided access seekers the opportunity to seek further information regarding the FLSM, Telstra's cost allocation proposal and its BBM record keeping rule response. Attendance at the workshop was limited to access seekers and consultants to access seekers who had executed confidentiality undertakings.

The ACCC agreed to a request received on 9 September 2014 from Telstra that the due date for submissions to the primary prices discussion paper be extended by one week to 3 October 2014.

The ACCC also agreed to extend the due date for submissions by one week for the domestic transmission capacity service final access determination primary price terms discussion paper.

The ACCC has released a statement on how it intends to account for the arrangements between Telstra and NBN Co, regarding the migration of customers to the NBN and NBN Co's use of Telstra's infrastructure, in determining primary prices in this final access determination inquiry, in advance of a more comprehensive draft decision.

Telstra has submitted an amended version of the fixed line services model (FLSM) intended to facilitate the determination of prices for the fixed line services in this final access determination inquiry.

Telstra's amended FLSM incorporates Telstra’s proposed cost allocation framework and revised expenditure and demand forecasts, which allow for different assumptions to be made about the rollout of the NBN.

A confidential version of the amended FLSM can be obtained from Telstra under the confidentiality undertakings currently in place.

On 19 December 2014, iiNet submitted amendments to the FLSM in response to the ACCC's current public inquiry relating to making final access determinations for the fixed line services. As part of its submission, iiNet has provided a report from Frontier Economics and a confidential version of its amended FLSM.

The ACCC received the following submission to the position statement on the treatment of the Telstra-NBN Co arrangements.

On 17 February 2015, the Competitive Carriers' Coalition and Optus wrote to the ACCC regarding the current consultation process for the fixed line services final access determination primary price terms inquiry.

The ACCC requested further information from Telstra relevant to the ACCC inquiry to make final access determinations for the fixed line services on the following dates:

• 18 December 2014
• 14 January 2015
• 12 February 2015.

Telstra responded to the ACCC's requests for further information on the following dates:

• 19 January 2015
• 30 January 2015
• 6 February 2015
• 18 February 2015
• 12 March 2015.

Public versions of these documents are provided. Telstra told the ACCC that it is comfortable with the publication of its correspondence.

Access seekers can obtain confidential versions of the information from Telstra under the confidentiality arrangements in place for the inquiry.

The ACCC expects to release a draft decision on the final access determination primary price terms in early 2015.

The draft decision will address all of the issues raised in the discussion paper. The ACCC expects to make the final access determinations by mid-2015.