Accc Rules For Telstra On Access
The Age
Wednesday April 30, 2008
TELCOS wanting to supply fixed-line telephone services in metropolitan areas will probably be stripped of the right to piggyback Telstra's copper-wire network, in a bid to force them to install their own equipment.
A draft decision by the Australian Competition and Consumer Commission has largely supported a bid by Telstra to scrap its obligation to provide wholesale fixed-line telephone access in many areas where smaller telcos have installed their own equipment.If formalised, the decision would allow Telstra to set its own prices for wholesale access and deny access to any smaller telcos who do no agree to the terms.The ACCC's motive is to encourage telcos to install DSLAM digital equipment in Telstra exchanges, which allows them to virtually circumvent the Telstra network to provide their own telephone and broadband services.While some telcos have publicly expressed reluctance to continue investing in DSLAMs because of the likelihood the equipment would be bypassed in a fibre-to-the-node (FTTN) broadband network, ACCC chairman Graeme Samuel said he still believed it was the best form of competition for the sector."We've always been of the view that facilities-based competition is the best form of competition", he said.Mr Samuel said the ACCC policy was influenced by the ability for telcos to get a positive return on their DSLAM investment in a "relatively short term", often within two years."The issue of stranding has clearly been one since 2005 . . . yet not withstanding the very real prospect of a fibre roll-out . . . there's still been substantial installation of DSLAMs that's been occurring," he said.Telstra's submission called for the removal of its wholesale obligations for all telephone exchanges where there was at least one rival DSLAM, of which there are 387 nationally.The ACCC, however, only agreed to remove the obligation in the 229 exchanges where there are at least three rivals DSLAMs, as well as exchanges which serve 14,000 telephone lines (enough to justify investment).Mr Samuel said smaller telcos who wanted to continue providing telephone services without installing their own equipment could seek access from the owners of the rival telcos if they considered Telstra's prices to be too high.Telstra, which has relentlessly blamed ACCC pricing policies for the lack of equipment-based competition, said it was "encouraged that the realities of an increasingly competitive market place might start to be reflected in regulatory reform".The new ACCC ruling affects about 4 million telephone lines. At the end of last year Telstra provided wholesale access for 1.73 million lines, although a spokesman could not immediately say how many of those lines would be affected.But the ruling is not all bad for the dominant telco's competitors - specifically because Telstra will not be given wholesale exemptions in exchanges it has claimed to be "capped" (not able to fit rival equipment).Telcos including Optus, Primus and iiNet have complained that Telstra has stunted their expansion plans by preventing them install their own DSLAMs in certain exchanges it claimed were full - there were 76 on that list as of last month - but the prospect of less regulation should encourage Telstra to make space for rivals.KEY POINTS ? ACCC backs Telstra in ruling that may force competitors to install their own equipment.? Prospect of less regulation should encourage Telstra to make space for rivals.
© 2008 The Age
