iiNet disappointed with ACCC’s draft ADSL pricing

iiNet disappointed with ACCC’s draft ADSL pricing

Wholesale pricing suggested less than efficient costs when compared to its own cost for provisioning DSL ports.

iiNet has expressed disappointment with the Australian Competition and Consumer Commission (ACCC) draft report for final access determination (FAD) for Telstra wholesale ADSL services.

iiNet said it was disappointed with the draft determination on a number of fronts, especially given the time it took to provide it. The telco said the wholesale pricing suggested less than efficient costs when compared to iiNet’s own cost for provisioning DSL ports.

The telco plans to review the draft and provide ACCC with its comments. It also stated the draft determination won’t pose a material impact on its financial results if it does become the final determination.

The draft, released on March 12, 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.

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