ACCC unveils proposals for fixed line pricing principles

24 Aug 2009

The Australian Competition and Consumer Commission has issued draft pricing principles and indicative prices for six fixed line wholesale services for the next three years. The regulator has announced its proposals for unconditioned local loop services (ULLS), line sharing service (LSS), PSTN originating access (PSTN OA), PSTN terminating access (PSTN TA), local carriage service (LCS) and wholesale line rental (WLR). The regulator has said that, having expanded the range of its information sources, including cost model data and international benchmarking, it is better equipped to simplify the pricing structure for access to some of the aforementioned services using a two zone approach. It claims the new approach allows it to more accurately reflect the cost of providing services in the two zones without impacting competition in the relevant sectors, and as a result the draft principles propose pricing for all six services on a cost basis. The indicative prices for some services, such as WLR and ULLS are set to rise, while others, including PSTN OA and LCS will decline. The ACCC has called for comments on the proposals, and submissions are due by 25 September 2009.