Telstra fixed line access price consultation begins

ACCC seeks input on setting primary prices for services via discussion paper

The Australian Competition and Consumer Commission (ACCC) is seeking input on setting primary prices for regulated fixed line services on Telstra’s copper network.

The watchdog has released a discussion paper as part of its inquiry into making final access determinations (FADs) for seven fixed line services. These represent the monthly and usage charges paid for the regulated services, and include charges for access and resale services.

“The ACCC is seeking views on several complex pricing issues it will consider during the FAD inquiry,” Commissioner Cristina Cifuentes said.

“These issues include an assessment of Telstra’s expenditure and demand forecasts, approaches to the allocation of costs to access services, the impacts of declining demand and the impact of Australia’s transition from Telstra’s copper network to the National Broadband Network (NBN).”

The ACCC said it uses a building block pricing method to set primary prices for the aforementioned services. It has obtained expenditure and demand forecasts for the next five years from Telstra.

A September 26, 2014, deadline has been set for submissions on the discussion paper.

The ACCC aims to release a draft in late 2014, with plans to make a final decision by mid-2015.

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