Telstra considers giving ACCC more power in SSU
- 01 November, 2011 10:19
- Comments 3
Telstra is considering giving the Australian Competition and Consumers Commission (ACCC) more power in its revised structural separation undertaking (SSU), putting the watchdog on equal footing with an Independent Telecommunications Adjudicator (ITA).
The SSU, which details how Telstra would structurally separate its wholesale and retail arms, is a crucial part of the telco’s $11 deal with NBN Co.
The agreement was met with shareholder approval last month but the ACCC was dissatisfied with the original SSU and has asked Telstra to submit a revised version.
An Independent Telecommunications Adjudicator (ITA) was first suggested by Telstra in its submission to the NBN: Regulatory Reform for 21st Century Broadband discussion paper in 2009.
It was proposed as an independent body in which wholesale access seekers could voice their concerns before approaching the ACCC.
Telstra’s original SSU, it committed itself to establishing an ITA as part of an “accelerated investigation process” for wholesale customer pricing complaints.
But the fact Telstra would appoint members of the ITA board, even with ACCC approval, rubbed many of the telco’s competitors the wrong way.
In its structural separation undertaking (SSU) update to shareholders, Telstra suggested reducing the ITA’s role in wholesale customer dispute processes. The telco stressed that suggestions made in the update document are not set in stone and are “subject to further consideration”.
“The ACCC could be given a parallel power to act as the adjudicator, with the same powers under the SSU to make directions as the ITA,” Telstra said in its SSU update.
This means wholesale customers could choose whether to refer disputes to the ACCC or to the ITA.
“In effect, if a wholesale customer has concerns about the independence of the ITA, this would make the ACCC available as an alternative,” Telstra said.
ACCC would also be given more power to set pricing for Telstra wholesale copper products as well as give directors to Telstra to change internal systems and processes.
Telstra is eager to get a revised SSU settled and submitted to the ACCC as soon as possible.
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Comments
Kevin
1
"is a crucial part of the telco’s $11 deal with NBN Co. ". If only.
No for the Telstra theme song. "You put your left hand in, your left hand out"
Tom Brown
2
Seems like another ombudsman but not any separation.
No separation as it just creates another layer to separate the problem into individual complaints.
Telstra needs to be split up! Telstra's financial alignment is that Telstra wholesale is subsidising Telstra retail. This is so that Telstra wholesale appears to be charging everyone the same high price and that Telstra retail can compete. It is not a problem of cross subsidy the problem is Telstra is a monopoly and monopolies need control and in this case that means the gouging of the cost of the service at wholesale level needs to be removed.
An independant non aligned Telstra(?) wholesale is needed.
gnome
3
This is starting to sound a bit like the charade that was proposed by Helen Coonan when she was the minister. iirc the idea then was that Telstra would devise and operate its own version of 'separation', and the minister would distantly apply some light touch regulation.
Riiiight. . .
If the past is any guide, the current Telstra proposal may see any regulation of real separation tied up for months on every issue by clever lawyers.