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Telecommunications ACCC reviews regulation of fixed line services
Telecommunications ACCC reviews regulation of fixed line services | ACCC reviews regulation of fixed line services |
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| by Stuart Corner | |
| Tuesday, 20 June 2006 | |
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"The ACCC's draft decision is to continue the regulation of the ULLS and PSTN OTA services on a national basis for a period of three years", ACCC chairman, Graeme Samuel. "No party, including Telstra, advocated the complete removal of these declarations at this stage. The ACCC considers that Telstra retains a substantial degree of market power in originating and terminating voice calls and in the provision of fixed services including wholesale and retail broadband services. However the ACC notes the emergence of various local access networks in some areas, mostly in CBDs, which rely on a range of alternative technologies such as fixed wireless, optical fibre and satellite services and it expects that this trend will gain momentum. "While these networks may have the technical capability to deliver services that are, to a degree, substitutable for Telstra's copper-based customer access network, the ACCC is not satisfied, on the basis of the information available to date, that there is effective competition in particular areas, even where some form of competitor infrastructure exists", Samuel said. "Therefore, while continuing the declarations of these services, the ACCC proposes to more comprehensively monitor the development of alternative infrastructure and other developments and the competitive pressure they place on Telstra's ULLS and PSTN OTA services over this period. The ACCC intends to conduct a stock take of infrastructure "to further inform its analysis of where regulation is needed and where it can be removed" and seeks comments on what factors to consider deciding whether to roll back regulation of various fixed network services. The ACCC has also considered whether there is a case for declaring a wholesale xDSL service to address market power concerns over the provision of such services but says: "a compelling case for declaration of a wholesale xDSL service has not been made at this time". The ACCC has also made a draft decision to revoke the declaration of the Conditioned Local Loop Service, on the grounds that this service provides little or no competitive benefits. Submissions on the declaration of ULLS and PSTN OTA are required by 7 July. Submissions addressing broader issues including the factors that should be considered in rolling back regulation in the future, should be submitted by 31 August 2006.
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