ACCC reserves judgement on Telstra report card - News - Communications

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This story was printed from ZDNet Australia.
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ACCC reserves judgement on Telstra report card

By Staff writers, ZDNet Australia
December 22, 2003
URL: http://www.zdnet.com.au/news/communications/soa/ACCC-reserves-judgement-on-Telstra-report-card/0,130061791,120282118,00.htm

The Australian Competition and Consumer Commission has held back from giving Telstra the thumbs up after releasing its first round of reports into the accounting separation of the telecommunications heavyweight.

The reports are designed to ensure that Telstra does not use its dominant position in the marketplace to engage in uncompetitive behaviour. While the reports were mostly positive, the ACCC held back from wholeheartedly endorsing Telstra's position. Michael Cosgrave, the general manager for telecommunications for the ACCC, has previously stated that the reports are still in their transitional phase, and would move towards a more comprehensive, credible accounting separation regime for subsequent reports from Telstra. "Ongoing reports based on improved data over time could well present a different picture," said the ACCC.

"Telstra's first report indicates while there are some variances that require further investigation, there is no evidence to suggest that there is any systemic discrimination against Telstra Wholesale's customers," said the ACCC concerning the key performance indicators on non-price terms and conditions.

"While the information in the three reports does not tend to reveal any specific concerns with the way Telstra is providing services to access seekers to enable them to compete in retail markets, it should be noted the reports are highly aggregated in terms of customer and service categories," continued the ACCC. "This means that specific or individual cases may arise which could give the ACCC grounds for concern. Such cases would continue to be looked at on their merits."

The ACCC did find some problems when it conducted imputation testing, which is designed to ensure there is enough difference between Telstra's wholesale and retail prices to ensure adequate competition.

"Telstra passes the imputation tests for domestic and international long-distance calls and fixed-to-mobile calls, but fail for local call services (line rental and local calls combined)," said the ACCC. It said it would consider whether this raised any competition issues in subsequent reports.