Fixed Services Review – Declaration Inquiry Public inquiry into the fixed line services declarations Draft Report December 2013
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[c-i-c] [c-i-c] and $22.84 (being the regulated cost of supply as set by the ACCC).
148 Assuming access seekers pay the CBD price of $31.77 per WLR line. 149 Based upon Macquarie Telecom, AAPT and iiNet, November 2013 case studies estimates. Broadband costs are assumed to comprise of ADSL port cost, bandwidth cost, national cost and backhaul cost. 151 Macquarie Telecom, AAPT and iiNet, November 2013 case studies 152 Macquarie Telecom, AAPT and iiNet, November 2013 case studies 153 Assuming retail service providers charge between $31.77 (being the cost charged by Telstra for a WLR service) and $35 per month for a single voice-only line. 154 As outlined in the small business example above, the ACCC has assumed that the cost for Telstra to supply a voice only line in CBD areas falls between [c-i-c][c-i-c] and $22.84 (being the regulated cost of supply as set by the ACCC). 155 Assuming access seekers pay the non-regulated price of $31.77 per WLR line. 156 Assuming Telstra faces a cost equal to the regulated price of $22.84 per WLR. 157 Assuming access seekers pay the regulated price of $22.84 per WLR line. 158 This is to be contrasted with single location corporate customers, such as a medium sized law firm, where a service provider can replace all the copper lines (say, 30) to the floor of the customer’s building with a single fibre connection across which both voice and data can be supplied (using VOIP technology). 159 Calculated as the difference between the WLR price in CBD areas of $31.77 and the regulated WLR price of $22.84, multiplied by 200 lines. 161 Optus, October 2011 Submission in response to the ACCC Issues Paper - Inquiry into varying the exemption provisions in the final access determinations for the WLR, LCS and PSTN OA services, p. 14. 163 Macquarie, October 2013 response to information request, p. 3. 164 Macquarie, October 2013 response to information request, p. 3. 165 Telstra, email to ACCC, November 2013. 166 AAPT, October 2013, response to information request, p. 6. 167 In contrast, access seekers are more easily able to obtain scale economies in supplying fixed broadband services and fixed voice/broadband bundles services using the ULLS and their own exchange equipment. This is largely because the prices, and therefore margins, for retail broadband and bundled products are greater than for a single voice-only service on a line. 168 AAPT, October 2013, response to information request, p. 5. 169 Optus, October 2013, response to information request, p. 2. 170 Telstra, October 2013, response to information request, p. 12. 172 ACCC, Declaration of the wholesale ADSL service under Part XIC of the Competition and Consumer Act 2010, Final Decision, February 2012, p. 11. 173 Data sourced from Telstra, October 2013 response to information request, Appendix: CBD data request. 174 Frontier Economics Report, November 2013 p. 11. 175 Optus, August 2013 submission, p. 46. 176 Data sourced from Telstra, October 2013 response to information request, Appendix: CBD data request. 177 Optus, October 2011 Submission in response to the ACCC Issues Paper - Inquiry into varying the exemption provisions in the final access determinations for the WLR, LCS and PSTN OA services, p. 18. 178 Optus, October 2011 Submission in response to the ACCC Issues Paper - Inquiry into varying the exemption provisions in the final access determinations for the WLR, LCS and PSTN OA services, p. 16. 179 AAPT, October 2013, response to information request, p. 4. 180 Telstra, October 2013 response to information request, p. 7. 181 ACCC, Public inquiry to make final access determinations for the declared fixed line services: Final Decision, p. 98. 182 Telstra, October 2013, response to information request, p. 5. 183 ACCC, Public inquiry to make final access determinations for the declared fixed line services: Final Decision, p. 73. 184 Telstra, October 2013, response to information request, p. 8 185 ACCC, Public inquiry to make a final access determination for the Wholesale ADSL service, Final Report, May 2013, pp. 69-70. 186 AAPT, August 2013 submission, p. 11. 187 Macquarie Telecom, November 2013 second supplementary submission, p. 1. 188 Macquarie Telecom, AAPT and iiNet, September 2013 joint submission) Attachment 1, Frontier Report p. 6. 189 Telstra, September 2013 submission, p. 50. 190 AAPT, August 2013 submission, p. 14. 191 iiNet, August 2013 submission, p. 7; AAPT, August 2013 submission, p.14. 192 Telstra, September 2013 submission, p. 37. 193 Telstra, September 2013 submission, pp. 37-38. 194 Section 349 of the Telecommunications Act. 195 Telstra, September 2013 submission, p. 38. 196 Telstra, September 2013 submission, p. 39. 197 Telstra, September 2013 submission, p. 39. 198 Telstra, September 2013 submission, p. 26, iiNet, August 2013 submission, p. 7, AAPT, August submission, p. 14. 199 AAPT, August 2013 submission, p. 15. 200 http://www.nbnco.com.au/industry/service-providers/wholesale-service-providers.html, viewed 21 October 2013. 201 Telstra, September 2013 submission, p. 38. 202 203 ACCC, July 2013 Discussion Paper, p. 32. 204 ACCC, July 2013 Discussion Paper, p. 32. 205 ACCC, July 2013 Discussion Paper, pp. 33-34. 206 ACCC, July 2013 Discussion Paper, pp. 34-35. 207 ACCC, July 2013 Discussion Paper, p. 35. 208 ACCC, July 2013 Discussion Paper, pp. 35-36. 209 AAPT, August 2013 submission, p. 13 and 29; ACCAN, August 2013 submission; p. 9; iiNet, August 2013 submission, p. 9; Macquarie Telecom, August 2013 submission, p. 10.; Optus, August 2013 submission, pp. 48-49; Telstra, September 2013 submission, p. 40. 210 Macquarie Telecom, August 2013 submission, pp. 9-10. 211 Optus, August 2013 submission, p. 49. 212 Telstra refers to this functionality as ‘Special Access Services’. 213 Telstra, September 2013 submission, p. 40. 214 Telstra, September 2013 submission, p. 40. 215 Optus, August 2013 submission, pp. 50-51. 216 Optus, August 2013 submission, pp. 49-50. 217 Optus, August 2013 submission, p. 52. 218 Optus, August 2013 submission, p. 52. 219 AAPT, August 2013 submission, p. 21. 221 Macquarie Telecom, August 2013 submission, pp. 10-11. 222 Telstra, September 2013 submission, p. 40. 223 A-Party is the service in operation (SIO) making or originating the call. The B-Party is the SIO receiving or terminating the call. 224 Subsection 152AB(2)(d) of the CCA 225 Optus, August 2013 submission, pp. 49-50. 226 Optus, August 2013 submission, p. 52. 227 In contrast, this inquiry into the declaration of the current declared fixed line services is being conducted in accordance with the requirements of section 152 ALA(7) of the CCA. 228 Optus, August 2013 submission, p. 53. 229 Optus, August 2013 submission, p. 59. 230 Optus, August 2013 submission, p. 57. 231 ACCAN, September 2013 submission, p. 9. 232 Megaport, September 2013 submission, p. 1-2. 233 Megaport, September 2013 submission, p. 5. 234 Megaport, September 2013 submission, p. 5. 235 Herbert Geer, August 2013 submission, p. 12. 236 Megaport, September 2013 submission, p. 4. 237 Megaport, September 2013 submission, p. 4. 238 Macquarie Telecom, August 2013 submission, p. 12. 239 Macquarie Telecom, August 2013 submission, p. 13. 240 Macquarie Telecom, August 2013 submission, p. 14. 241 AAPT, August 2013 submission, p. 30. 242 Telstra, September 2013 submission, p. 43. 243 Telstra, September 2013 submission, p. 43. 244 Telstra, September 2013 submission, p. 43. 245 Telstra, September 2013 submission, p. 44. 246 Telstra, September 2013 submission, p. 44. 247 Telstra, September 2013 submission, p. 44. 248 Herbert Geer, August 2013 submission, p. 14. 249 Herbert Geer, August 2013 submission, p. 12. 250 Clause 17 Part 3 and clause 35 Part 5, Schedule 1 to the Telecommunications Act. 251 Subclauses 18(1) and 36(2) of Schedule 1 to the Telecommunications Act. 252 Dermot Cox, August 2013 submission, p. 5, 11. 253 Dermot Cox, August 2013 submission, p. 5-6. 254 ACCAN, August 2013 submission, p. 10. 255 Macquarie Telecom, August 2013 submission, p. 3-4. 256 Herbert Geer, August 2013 submission, p. 8. 257 Herbert Geer, August 2013 submission, p. 8. 258 Macquarie Telecom, August 2013 submission, p. 11. 259 Macquarie Telecom, August 2013 submission, p. 9. 260 AAPT, August 2013 submission, p. 21. 261 ACCC, Public Inquiry to make a final access determination for the Wholesale ADSL service, Final Report, May 2013, p. 7. 262 Subsection 152ALA(2) of the CCA. 263 Explanatory Memorandum to the CACS Act, p. 167. 264 iiNet, August 2013 submission, p. 14; AAPT, August 2013 submission, p. 33; Optus, August 2013 submission, p. 5; Macquarie Telecom, August 2013 submission, p. 14. 265 Telstra, September 2013 submission, p. 45. 266 ACCAN, August 2013 submission, p. 11. 267 AAPT, August 2013 submission, p. 33. 268 Optus, August 2013 submission, p. 5. 269 Macquarie Telecom, August 2013 submission, p. 14. 270 ACCC, Fixed services review declaration inquiry for the ULLS, LSS, PSTN OA, PSTN TA, LCS and WLR, Final Decision, July 2009, p. 114. 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