The Australian Competition and Consumer Commission has issued a discussion paper looking at how the ACCC can provide guidance to market participants on the prices for access to certain wholesale telecommunications services.
The Paper examines a number of options for how indicative prices for the Public Switched Telephone Network (PSTN) originating and terminating services, Unconditioned Local Loop services (ULLS) and Local Carriage services (LCS) could be determined as well as putting forward the ACCC's preliminary views for how this could work. The Paper has been issued for public comment.
The paper does not specify or set indicative prices for these services. The ACCC is looking at developing indicative prices in early 2003, once issues about how such prices should be set are resolved.
ACCC Chairman, Professor Allan Fels, said he hoped that publishing indicative prices would assist in creating a more open and transparent telecommunications industry and encourage parties to reach commercial agreements without the need for arbitration. For example, it would provide greater information and guidance to industry players in negotiating over the terms and conditions of access or in giving undertakings to the ACCC.
The ACCC's decision to seek industry comment on how indicative prices should be determined in the future is also in preparation to implementation of pending Government initiatives that will require the ACCC to establish model terms and conditions, including prices, for access to the PSTN, the ULLS and the LCS.
"The ACCC sees indicative prices as being a reference point which will assist parties to resolve any differences encountered when negotiating the terms and conditions of access and will also encourage parties to give undertakings to the ACCC”, Professor Fels, said today.
Professor Fels emphasised that while any indicative prices published are not binding upon parties or the ACCC, if disputes are referred to the ACCC, they should be resolved more quickly by having published guidelines.
The ACCC has called for submissions from industry participants and other interested parties by 18 October 2002.