Review of fixed line wholesale services pricing 2009–2010

Background

The ACCC concluded its strategic review of the regulation of fixed network services in July 2009 and extended the declaration of each of the six fixed line services for a period of five years until 31 July 2014.

On 21 August 2009, the ACCC released draft pricing principles and indicative prices for the six fixed line wholesale services for public consultation. A copy of the ACCC's draft report, annexures and submissions in response are available below.

Draft report

Interested parties were originally invited to make written submissions on the draft pricing principles and indicative prices by 25 September 2009 however the time frame for submissions was extended to 9 October 2009.

Analysys fixed network cost model

The Analysys cost model provides estimates of the price of a set of current declared services, including:

• PSTN OA and TA
• ULLS
• LCS
• WLR
• LSS

The ACCC released the model for consultation in December 2008. In all 26 parties requested access to the Analysys cost model during the consultation period and, of those, four made submissions. Based on the responses to the consultation, where it was considered necessary and/or appropriate, the Analysys cost model was revised.

The Analysys cost model (version 2.0), included the inputs outlined in Appendix 2 of the draft pricing principles and indicative prices report.

NOTE: The Updated Analysys Model is compressed using a recent version of compression software. Users may need to update their compression software (e.g. WinZip) to access the model. If users have further problems, please contact John Skinner at john.skinner@accc.gov.au or 02 9230 3855.

Updated Analysys Mason Report

The ACCC has released an updated version of the Analysys Mason Assessment of possible modifications to the Analysys cost model that is available  below.

ACCC’s Specific Costs model

The Specific Costs model calculates the monthly specific costs charge for the ULLS and LSS. The structure of the model reflects the discrete cost models that Telstra developed in previous regulatory proceedings for the LSS specific costs and ULLS specific costs and combines data from the two.

Parties who wish to receive a copy of the ACCC’s Specific Costs cost model should email john.skinner@accc.gov.au with correspondence copied to appreview@accc.gov.au.

International Benchmarking reports

The ACCC has commissioned two recent international benchmarking reports in relation to fixed network services:

• Ovum, Telstra ULLS Undertaking—ULLS International benchmarking, February 2009.
• Analysys Mason, International benchmarking analysis: WLR, LCS, LSS and PSTN OTA, 18 August 2009.

These reports are available below: