The Australian Competition and Consumer Commission has issued a discussion paper seeking submissions on the service description for a Layer 2 bitstream service. The consultation is the first step in issuing a declaration that creates the ACCC’s role in regulating this service.
Layer 2 bitstream services, also known as the local bitstream access services are used to carry digital data on telecommunications networks.
“Given the importance of these networks in providing access to high-speed broadband, the ACCC strongly encourages owners and retailers providing services covered by the local bitstream access service description to make a submission,” ACCC chairman Rod Sims said.
This declaration is intended to cover the ‘last mile’ fibre to residences and small businesses on networks that are not owned by NBN Co.
The ACCC is required to declare this service under new provisions of the Competition and Consumer Act 2010. In order to do this, the ACCC must first develop a service description specifying which services are to be covered by the declaration. This declaration will oblige service providers to adhere to the Standard Access Obligations.
The declaration will only apply to services supplied using a designated superfast telecommunications network, which is a network used to supply a Layer 2 bitstream service where the download transmission data rate is normally 25 Mbps or higher. It will not apply to the NBN or to wireless or satellite networks. The ACCC continues to have discussions with NBN Co in expectation of it lodging a special access undertaking for its Layer 2 bitstream service.
The local bitstream access service declaration is expected to occur around the commencement of the new provisions, anticipated in October 2011. Within thirty days of the service being declared, the ACCC must commence a further public inquiry into the terms of access to the service, including setting a price or method of ascertaining a price for the service.
To assist its decision on the service description, the ACCC invites submissions from stakeholders and interested parties by no later than 5 pm on 16 September 2011. The discussion paper is available on the ACCC’s website.
