ACCC unveils fixed line pricing proposals

20 Sep 2010

The Australian Competition and Consumer Commission (ACCC) has issued draft indicative pricing for those fixed line voice services which are still regulated, iTWire reports. The regulator is calling for significant cuts in both line rental costs and the charges for local calls from the beginning of 2011, claiming that such reductions are appropriate following a reduction in the cost of providing fixed line services. Under the proposed legislation the ACCC is looking to reduce local call pricing from AUD0.17 (USD0.16) per minute to AUD0.07, while it has said that line rental should be cut from AUD25.57 per month to a nationally averaged AUD20 per month. The pricing proposals would apply from 1 January 2011 to the end of 2014 if they are accepted, with ACCC chairman Graeme Samuel noting that the long pricing period is aimed at providing industry players long-term certainty regarding future costs and returns. ‘The ACCC recognises that a four-year pricing guidance period will provide a level of certainty which is essential to support commercial negotiations in the industry and to continue to support the competitive supply and rollout of telecommunications services to consumers,’ Mr Samuel said.