The Australian Competition and Consumer Commission today announced its proposed approach to transmission pricing which is domestic benchmarking.
The proposed approach is based on the domestic benchmarking of prices on competitive transmission routes and supplemented by information from service providers and other sources. It follows the ACCC's public consultation on Domestic Transmission Capacity Service pricing earlier this year.
Transmission is a key component in delivering all voice and data services. This importance has been emphasised in the submissions received by the ACCC in its recent inquiry into the number and location of points of interconnect to the National Broadband Network. As demand for media rich content increases, the need for capacity in backhaul networks becomes increasingly important. The price of this component is therefore a significant issue. It is also important that the ACCC provide clear guidance about the way such prices are determined.
Transmission pricing will also be a significant component of Access Determinations developed by the ACCC with priority when telecommunications regulatory reforms take effect.
ACCC chairman Graeme Samuel said: "Backhaul and other transmission services are vital inputs to the delivery of end-user services. The ACCC has sought the views of industry on the best way to price these services and has developed an approach that seeks to address all the issues raised by the industry."
The proposed domestic benchmarking approach is set out in a Position Paper available from the ACCC website.