The Federal Court handed down its decision on three judicial review applications commenced by Telstra against the Australian Competition and Consumer Commission on Friday.

Telstra had challenged the legality of final determinations that the ACCC had made in arbitrating three disputes over access to the Line Sharing Service (LSS).

Importantly, the judgment confirms the ACCC's approach to setting prices for the LSS, including a rental charge of $2.50 per month.

While Justice Lindgren did find that the ACCC erred in one respect when making two of its decisions, he dismissed the other 10 grounds of appeal. The error concerned the one-off charge payable to disconnect a LSS during the nine months leading up to the making of the final determination. This charge is of minor significance compared to the other charges payable for the LSS.

"This decision affirms the ACCC's approach to the arbitration of disputes between telecommunications providers," ACCC Chairman, Mr Graeme Samuel, said.

"The ACCC has always taken a thorough, robust and transparent approach to disputes brought before it. These decisions have now been subjected to detailed scrutiny on multiple grounds of review, and the Federal Court has found that they have passed muster on all but one small point.

"The ACCC will continue to work with industry to ensure that all industry participants have fair access to declared telecommunications services, so as to promote the long term interests of Australian consumers of telecommunications services."

The matter is back before the court for orders on 22 October 2008.