The Australian Competition and Consumer Commission saw itself as a light-handed - but not hands-off - regulator in a fiercely competitive telecommunications sector, ACCC Commissioner in charge of telecommunications, Mr Rod Shogren, told the ATUG State Conference in Brisbane today.
"We don't want to be the first recourse for every dispute," he said. "We expect the industry to develop its own dispute resolution procedures. We dont want to be the principal means by which prices in the industry are set. We expect to see commercial negotiations taking place from realistic bargaining positions and with a genuine desire to reach agreement.
"We don't intend to be like an old-style school teacher walking up and down the aisles, smacking wrists for the smallest misdemeanour, not allowing anyone to talk in class.
"We are not in the classroom, but in a robust contest. We will welcome hard, fast, fair play. But we will 'blow the whistle' on play that endangers the very contest itself, though not necessarily for every hard tackle, even if it is dangerous to life and limb. And when we 'blow the whistle', much more than a slap on the wrist is at stake.
"In short, we want to see the development of efficient self-regulation, but we will still be ready to play an active role."
Mr Shogren said the ACCC could not definitely predict the future course of telecommunications competition.
"Some players do show a tendency to come running to us a little too soon in a dispute," he said. "Remember that when you do come to us - and you should not think I want to discourage that in any way if you have a valid complaint - what we will be asking you is not just to tell us how you have been hurt in the game, but how that is against the rules of the game.
"And remember that the rules of the game are pretty tough. Its because they allow for hard play that the penalties are potentially very large indeed.
"We do recognise that there are serious imbalances of market power in this industry. We also recognise that the new additions to the Trade Practices Act were put there to give us the ability to react quickly to the misuse of market power. If our light-handed approach proves to be insufficient, well just have to get heavier.
Mr Shogren noted that the ACCC is currently investigating several allegations of anti-competitive behaviour.
"Similarly, its much too soon to see how access pricing will develop. Its quite conceivable that the Commission will end up effectively setting access prices across the industry.
"That, in my view, would be a great pity. But we cannot force effective negotiation on parties and, at the end of the day, we can be forced to set prices. And the Act certainly provides for us to arbitrate terms and conditions of access. Obviously we are quite prepared to do that; I would be surprised if we dont do it at some stage.
"But an arbitration is between two parties. What I dont want to see is the ACCC setting prices across the board. If that happens - and I believe we could be forced into it - it will be a sign that the industry has not reached an adequate level of maturity. I believe that an industry which comes to rely on a regulator to set prices for it is an industry unlikely to be capable of sustaining a healthy level of competition."
Further information Mr Rod Shogren, ACCC Commissioner, (0414) 613 521 Ms Lin Enright, Director, Public Relations, (02) 6264 2808
"We don't want to be the first recourse for every dispute," he said. "We expect the industry to develop its own dispute resolution procedures. We dont want to be the principal means by which prices in the industry are set. We expect to see commercial negotiations taking place from realistic bargaining positions and with a genuine desire to reach agreement.
"We don't intend to be like an old-style school teacher walking up and down the aisles, smacking wrists for the smallest misdemeanour, not allowing anyone to talk in class.
"We are not in the classroom, but in a robust contest. We will welcome hard, fast, fair play. But we will 'blow the whistle' on play that endangers the very contest itself, though not necessarily for every hard tackle, even if it is dangerous to life and limb. And when we 'blow the whistle', much more than a slap on the wrist is at stake.
"In short, we want to see the development of efficient self-regulation, but we will still be ready to play an active role."
Mr Shogren said the ACCC could not definitely predict the future course of telecommunications competition.
"Some players do show a tendency to come running to us a little too soon in a dispute," he said. "Remember that when you do come to us - and you should not think I want to discourage that in any way if you have a valid complaint - what we will be asking you is not just to tell us how you have been hurt in the game, but how that is against the rules of the game.
"And remember that the rules of the game are pretty tough. Its because they allow for hard play that the penalties are potentially very large indeed.
"We do recognise that there are serious imbalances of market power in this industry. We also recognise that the new additions to the Trade Practices Act were put there to give us the ability to react quickly to the misuse of market power. If our light-handed approach proves to be insufficient, well just have to get heavier.
Mr Shogren noted that the ACCC is currently investigating several allegations of anti-competitive behaviour.
"Similarly, its much too soon to see how access pricing will develop. Its quite conceivable that the Commission will end up effectively setting access prices across the industry.
"That, in my view, would be a great pity. But we cannot force effective negotiation on parties and, at the end of the day, we can be forced to set prices. And the Act certainly provides for us to arbitrate terms and conditions of access. Obviously we are quite prepared to do that; I would be surprised if we dont do it at some stage.
"But an arbitration is between two parties. What I dont want to see is the ACCC setting prices across the board. If that happens - and I believe we could be forced into it - it will be a sign that the industry has not reached an adequate level of maturity. I believe that an industry which comes to rely on a regulator to set prices for it is an industry unlikely to be capable of sustaining a healthy level of competition."
Further information Mr Rod Shogren, ACCC Commissioner, (0414) 613 521 Ms Lin Enright, Director, Public Relations, (02) 6264 2808