ACCC rules to continue ADSL regulation amid NBN rollout

ACCC rules to continue ADSL regulation amid NBN rollout

Draft decision rules that service line regulation remain for an extra five years

The Australian Competition and Consumer Commission (ACCC) has released its draft decision to continue regulating the wholesale asymmetrical digital subscriber line (ADSL) service for a further five years.

ADSL is based on the legacy copper network, which provides the vast majority of internet access across the country.

In light of the rollout of the National Broadband Network (NBN), the regulatory body began a public inquiry into ADSL wholesale services in July, to concur whether continued regulation of the sector is in the best interest of consumers.

The draft decision ruling has maintained that continuing to regulate the wholesale ADSL service will benefit customers by promoting competition in broadband markets until the NBN rollout is complete.

“Telstra retains its dominant position in both the wholesale and retail markets for the supply of ADSL fixed-line broadband services on a national level,” ACCC commissioner, Cristina Cifuentes, said.

ACCC commissioner, Cristina Cifuentes
ACCC commissioner, Cristina Cifuentes

“Continuing regulation will ensure network providers continue to have access to Telstra’s copper network at reasonable prices.

"This will encourage them to continue competing in the retail market to develop and offer different ADSL broadband products to meet the needs of customers as they prepare to shift to the nbn,” she said.

The wholesale ADSL service was first declared in February 2012, and the consumer watchdog is required to review the wholesale ADSL declaration and finalise its decision before it expires on 13 February, 2017.

The ACCC invites submissions on its draft decision from stakeholders and interested parties by close of business, 14 November, 2016.

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Tags NBNADSLacccThe Australian Competition and Consumer Commission

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