ACCC releases report on Telstra wholesale ADSL pricing

ACCC releases report on Telstra wholesale ADSL pricing

Regional Australia may get access to cheaper broadband, giving way to more competition in the market

Competition in the retail fixed-broadband market is set to heat up under a draft report released by the Australian Competition and Consumer Commission (ACCC) on final access determination (FAD) based on Telstra's wholesale ADSL services.

The draft proposes cost-based prices with a monthly port charge per end-user based in CBD and metro areas at $24.56, regional and rural areas will be charged $29.81, cheaper than what the ACCC initially set out last year.

The monthly charge per aggregating virtual circuit or virtual LAN acquired in connection with wholesale ADSL is priced at $36.08 per Mbps.

In February last year, the ACCC declared the wholesale ADSL service and simultaneously released an interim access determination (IAD), which resulted in prices being regulated for the first time.

The cost-based prices are lower than the IAD charges, previously priced at $25.40 for CBD and metro, and regional areas were priced at $30.80.

The cost-based prices will be valid until June next year.

Until then, the ACCC said it will review the price and non-price terms for the wholesale ADSL.

The ACCC proposes to limit the application of the FAD to Telstra and apply it nationally.

ACCC chairman, Rod Simms, said the proposed decision would foster competition in retail fixed-broadband markets and maintain investment incentives in the transition to the NBN.

“Setting regulated prices for access to Telstra’s wholesale ADSL service will assist access seekers to offer a range of competitive fixed-line broadband internet services to retail broadband users,” Sims said.

The ACCC stated access seekers and Telstra will still be able to negotiate their own terms and conditions of access, and the FADs will act as a benchmark for Telstra and access seekers to fall back on.

The inquiry period for the wholesale ADSL was recently extended to August 13, but the ACCC expects to release its final decision prior to that date.

The ACCC is inviting interested parties to make submissions on the draft report by April 5.

The draft decision, draft FAD and a short guide to the wholesale ADSL service can be found here.

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Tags TelstraADSLacccpricing modelsRod Sims


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