ACCC proposes 22% cut in DTCS rates

4 Sep 2015

The Australian Competition and Consumer Commission (ACCC) has issued a draft final access determination (FAD) for the declared domestic transmission capacity service (DTCS). As per its proposals, the regulator has suggested DTCS pricing which it says is ‘significantly lower’ than the regulated prices set in its 2012 DTCS FAD. To that end, on average draft DTCS prices are 22.2% lower than the equivalents set in 2012, though the ACCC has noted that the declines vary depending on the geographic route type, capacity and distance of a particular service. As an example, it highlighted the fact that average regulated pricing for the DTCS is 17.6% lower in metropolitan areas and 23.8% lower on regional routes.

With the DTCS FAD to take effect from the date of publication to 31 December 2019, the ACCC has now invited submissions on the draft decision until 2 October 2015, following which it expects to release a final decision in November.

Commenting on the matter, ACCC chairman Rod Sims was cited as saying: ‘The regulation of the transmission network plays an important role in promoting competition in the telecommunications markets, particularly in regional areas … The ACCC’s draft decision will see prices for regulated routes, on average, follow the downward trend we have seen on more competitive routes.’