The Australian Competition and Consumer Commission has today confirmed that interim determinations were made in five telecommunications disputes regarding monthly charges for the supply of the unconditioned local loop services (ULLS)*.

The interim determinations provide for the following charges for the supply of the ULLS from Telstra:

Charges for the supply of the ULLS from Telstra

Annual Charge Telstra Unconditioned Local Loop Service

Band 1

Band 2

Band 3

Charge

$86.40 per annum
($7.20 per month)

$212.40 per annum
($17.70 per month)

$410.40 per annum
($34.20 per month)

The interim determinations were made in arbitrations between Telstra and the following parties:

  • Primus Telecommunications Pty Ltd
  • Optus Networks Pty Ltd
  • XYZed Pty Ltd
  • Request Broadband Pty Ltd
  • PowerTel Ltd.

The interim determinations were made in mid- to late- August and the charges will apply between the parties until either the interim determinations expire, are revoked, or until a final determination is made in each arbitration.

The ACCC on 1 September 2006 published in full on its website an interim determination for ULLS monthly charges and its associated statement of reasons in the Chime/Telstra arbitration.

Under the Trade Practices Act 1974 the ACCC may make an interim determination in a dispute prior to making a final determination and may publish the contents of a determination and/or reasons after consulting with the parties.

The ACCC has considered parties' submissions and decided to issue this media release confirming that these interim determinations were made in these arbitrations on the same terms and for the same reasons as the interim determination in the Chime/Telstra arbitration.

The ACCC believes this confirmation will assist in informing the debate on the ULLS and encourage more reasonable ULLS prices to apply across the market.

Given that the legislation contemplates that arbitrations be otherwise conducted in private, the ACCC will not be making any further public comment at this stage.

* The Unconditioned Local Loop Service (ULLS) involves the use of unconditioned cable, primarily copper pairs, between end-users and a telephone exchange where the unconditioned cable terminates. Access to the ULLS, without dial tone or carriage service, allows other telecommunications companies to use the ULLS with their own equipment in exchanges to provide a range of services, including traditional voice services and high-speed internet access, to end-users.

The ULLS is a declared service under the Trade Practices Act and is supplied in four geographic bands: Band 1 (CBD); Band 2 (metro); Band 3 (regional) and Band 4 (rural).