ACCC's blow to investment...again
The Australian Competition and Consumer Commission (ACCC) today issued a draft decision proposing to reject Telstra's Undertaking application for a $30 ULLS monthly charge for metropolitan areas.
The ULLS monthly charge relates to the rent which Telstra charges competitors to access the copper wire from the telephone exchange to a house or office. Such access allows the provision of competitively priced voice and broadband services to consumers and businesses. Telstra has described the draft decision as another blow to efforts to foster investment in infrastructure in Australia.
"Twice in a week the ACCC has handed down decisions that discourage investment in much needed infrastructure,'' Telstra's executive director Dr Tony Warren said.
"It's astounding that after years of calling on Telstra to produce a transparent TSLRIC cost model to support its undertaking, and after Telstra has done just that, the ACCC now says it's doubtful whether TSLRIC principles should be used at all,'' he said.
"Telstra has sought to end years of disputation through its significant investment in a world-leading cost model and it's becoming clear that to end this unceratinty once and for all a truly independent assessment of Telstra's model is probably required."