ACCC unveils draft Telstra wholesale price terms

ACCC has published draft suggested pricing terms for Telstra's wholesale services, cutting the indicative prices in most cases

The Australian Competition and Consumer Commission (ACCC) has announced the interim pricing terms for access seekers to Telstra's (ASX:TLS) copper networks.

The Interim Access Determinations (IADs) have been designed to serve as a benchmark for Telstra and potential wholesale customers to fall back on when negotiating terms, ACCC said.

The price for a single ULLS in CBD, metropolitan and regional areas has been set to $16 per month. Prices had previously ranged from $6.60 per month for CBDs to $31.30 per month for regional areas.

In the most remote rural areas, the indicative access price goes up to $48.00.

Indicative wholesale prices for line rental have been cut by over $3, while use of the Local Carriage Service has been slashed to to 9.1 cents per call from 17 cents..

The prices have been backdated to January 1 – the date the new telecom access regime came into effect – and will expire at the end of the year or when final access determinations are set.

ACCC chairman Graeme Samuel said the terms serve only as a guideline for when no commercial agreement between Telstra and the access seeker can be reached.

“While parties are still able to negotiate their own terms and conditions, the [IADs] establish a benchmark for Telstra and access seekers to fall back on when negotiating terms and conditions.”

But he noted that the new draft terms represent a “major shift in our approach to pricing these services” - one that has the support of the industry.

Summary – Previous indicative prices compared with IAD prices to apply from 1 January 2011 to 31 December 2011

ULLS access prices with averaged prices

Previous indicative prices

IAD prices

Band 1

$6.60

$16.00

Band 2

$16.00

$16.00

Band 3

$31.30

$16.00

Band 4

 

$48.00

WLR (per line per month)

$25.57 (Homeline)
$26.93 (Businessline)

$22.10

LSS (per line per month)

$2.50

$1.80

PSTN OA and TA (per minute)

1c (headline rate)

1.0c

LCS (per call)

17c

9.1c



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Tags Australian Competition and Consumer Commission (ACCC)telcosInterim Access Determinations (IADs)Telstra

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