The Australian Competition and Consumer Commission today issued a final decision to reject Telstra's application for exemption from its obligations to supply regulated fixed line services to Optus within Optus' HFC cable network footprint.
The ACCC is not satisfied that granting the 'Optus HFC exemption' would promote the long term interests of end users. The ACCC's final decision highlights two major concerns with the application:
- the singling out of a particular competitor would represent a discriminatory access policy which would be likely to discourage investment and undermine the potential for efficient facilities-based competition in the telecommunications industry
- Telstra's strong position in the pay TV market and control over content, through its interest in Foxtel, would be likely to limit any possible competitive benefits from granting the exemption.
ACCC Chairman, Mr Graeme Samuel, said the ACCC retains concerns that this exemption application focuses too much on one competitor, rather than on benefiting consumers and competition generally.
"The ACCC considers that open and equivalent access to all parties continues to be an important issue in communications regulation."
The ACCC also considered further submissions about content and the role of Foxtel in the pay TV market.
"The ACCC continues to consider that Telstra's interest in Foxtel, and Foxtel's control over content, provide a significant limit on competition in the pay TV market," Mr Samuel said. "This also limits the potential for Optus' HFC network to provide competitive constraint in other markets."
The ACCC's final decision to reject the 'Optus HFC exemption' application affirms a draft decision issued on 22 September 2008.
The ACCC's final decision on Telstra's 'Optus HFC exemption' application will be available on the ACCC website
For media inquiries to the ACCC Chairman, Mr Graeme Samuel, or Mr Ed Willett, Commissioner, please call Mr Brent Rebecca, ACCC Media, on (02) 6243 1317. For general inquiries, please call the Infocentre: 1300 302 502.
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