Fixed Services Review – Declaration Inquiry Public inquiry into the fixed line services declarations Draft Report December 2013
Download 0.57 Mb.
|
- Navigate this page:
- ACCC’s draft view
- Fixed-to-mobile service
- Carrier-specific exemptions
HFC servicesIn response to the July 2013 Discussion Paper, Dermot Cox submitted that the ACCC should declare a Hybrid Fibre-Coaxial (HFC)-based broadband service. He submitted that HFC networks now provide a significantly superior broadband product than ADSL2+ and therefore competition would be promoted if there was wholesale access to these services.252 Dermot Cox also submitted that the NBN will not provide a competitive superfast broadband product in metropolitan areas until 2021 and the cost to enable wholesale access over the Telstra and Optus HFC networks is nominal.253 ACCAN submitted that there are good reasons why the HFC networks are not currently declared, but noted that HFC networks appear to play a part in a number of NBN policy options being considered by the Coalition (now the Government). It noted that the ACCC may need to revisit this issue after the election.254 Macquarie Telecom submitted that the existing HFC networks have a minor impact on the retail supply of broadband services because of the relatively small number of subscribers (maximum 15 per cent share of fixed line broadband subscribers) and limited geographic coverage of HFC networks.255 Macquarie Telecom did not support declaration of HFC services. ACCC’s draft viewThe ACCC will assess whether there is any need to consider an inquiry into the declaration of HFC services further, following clarification of the role of HFC networks in supplying telecommunications services within the broader context of the NBN. Wholesale business DSL serviceThe ACCC received a submission on declaring a wholesale business-grade (symmetrical) DSL service. iiNet submitted that competition would be enhanced if there was a declared resale service that allowed the provision of ‘high volume and/or symmetrical downstream services’ for corporate and government customers.256 It stated that this service would be similar to a symmetrical version of the declared wholesale ADSL service, which enables access seekers to supply resale broadband services in areas where they do not acquire the ULLS or LSS.257 The ACCC notes that no other submissions proposed declaring such a service. ACCC’s draft viewThe ACCC notes that Telstra already supplies business-grade services on a commercial basis and it is not clear the extent to which access to a regulated wholesale business-grade (symmetrical) DSL service is a significant issue for the industry more broadly. Subject to any further information the ACCC receives during the course of this inquiry, the ACCC does not propose to commence an inquiry into the declaration of a business-grade (symmetrical) DSL service. The ACCC may consider whether to commence an inquiry into declaring a wholesale business-grade (symmetrical) DSL service, either by varying the wholesale ADSL service description or declaring a new service, should further information become available to warrant such an inquiry. Fixed-to-mobile serviceMacquarie Telecom submitted that the ACCC should declare a fixed-to-mobile service, that is, an end-to-end bundled service that originates on a fixed network and terminates on a mobile network.258 It stated that because of a lack of bargaining strength, it pays more for a fixed-to-mobile service than the sum of the regulated charges for the public switched telephone network originating access (PSTN OA) (pre-selection and override) service and the mobile terminating access service (MTAS).259 ACCC’s draft viewA fixed-to-mobile service includes an originating access service, a terminating access service and a transmission service. The ACCC therefore considers that a fixed-to-mobile service would be expected to cost more than the sum of PSTN OA and MTAS charges alone. The ACCC considers that there are good substitutes for buying a bundled fixed-to-mobile service. Access seekers can purchase the PSTN OA service and MTAS at the regulated prices and separately purchase a transmission service, at the DTCS regulated price on non competitive routes or at a competitive price on routes where there is a choice of suppliers. On the evidence before the ACCC it appears that current fixed-to-mobile charges are broadly reflective of the costs of the three components of the bundled service, that is, originating access, MTAS and transmission (based on assumptions about average transmission costs per call minute). The ACCC considers that commencing an inquiry into declaring a fixed-to-mobile service is not warranted at this stage. Carrier-specific exemptionsThe ACCC received a submission from AAPT advocating that infrastructure owners or service providers ‘sufficiently constrained by competition’ should not be burdened by unnecessary regulation.260 It considered this was consistent with the principle ‘recognised by the ACCC’ in making a final access determination for the Wholesale ADSL service. It submitted the service descriptions for the fixed services should therefore be ‘specifically targeted’ at Telstra or that other carriage service providers be exempted from the standard access obligations in respect of the declared service. ACCC’s draft viewThe ACCC is of the view that the service descriptions for the declared fixed line services should not be amended to exempt providers other than Telstra from supplying the declared services. The ACCC notes that declarations are a service based regime and relate to specific services. A service description describes the service and the identity of the service provider is not relevant to that description. Where the ACCC grants carrier-specific exemptions, it does this by including a provision in the relevant FAD for the declared service where it is satisfied that granting such an exemption is in the LTIE. The ACCC further notes that, in granting carrier-specific exemptions for the Wholesale ADSL service in 2012, the ACCC concluded that requiring non-Telstra providers to supply the regulated Wholesale ADSL service may require these providers to ‘undertake significant investment in billing and provisioning systems to provide a wholesale ADSL service.’261 The ACCC has not received any evidence that there would be significant additional costs for non Telstra providers in supplying the declared fixed line services and notes that these services have been declared for some time. The ACCC is aware of service providers other than Telstra that are currently providing wholesale fixed line services. It does not consider that exempting these providers from providing the declared services would promote competition or be in the LTIE. Directory: system -> files files -> Haiti Relief – esf 15 Support Organization Situation Report # 17 1/28/10 files -> Haiti Relief – esf 15 Support Organization Situation Report # 16 1/27/10 files -> Right to Carbon or Right to Life: Human Rights Approaches to Climate Change files -> Enhancing interactive learning in the classroom with Turning Point files -> Curriculum vita files -> - files -> Acknowledgements files -> Nw, Washington D. C 20037 Telephone: (202)884-1080, (202)939-6125/7 files -> Grey-headed Flying-fox Management Strategy for the Lower Hunter Grey-headed Flying-fox Download 0.57 Mb. Share with your friends:
|