ACCC chairman, Professor Allan Fels, has touted the decision as a move to improve competitive forces on the wholesale CDMA termination service prices, and cites possible benefits to consumers being lower fixed to mobile call prices.
Telstra does not agree.
Rod Bruem, public affairs manager, legal and regulatory, at Telstra said it was somewhat baffled by what the ACCC was trying to achieve. -We see it as an unnecessary grab for power and nothing more," Bruem said. -Telstra already provides CDMA wholesale access to its competitors and there have been no disputes."
Bruem said a big concern was the effect on future investment in emerging wireless technologies, such as 3G. -We see this as a serious disincentive for 3G investment in Australia," Bruem said. -If competitors can piggyback on one carrier's investment the ACCC in allowing this is effectively killing investment in new technology."
-The ACCC seems hellbent on continuing to have regulatory control on each new form of technology, whether it's needed or not," Bruem said.
According to Bruem, Telstra has already made a submission to the ACCC on the matter. The ACCC has called for comment from interested parties on its draft decision by January 18 next year.
Vodafone also does not support the move to regulate CDMA. "Our view is that the mobile market should be self-regulating," said Vodafone spokesperson Germaine Graham.
Rather than regulating CDMA in addition to GSM, Graham felt it should be questioned whether regulation of either was necessary.
Graham said Vodafone also intends to be active participants in the consultation process.
Doug Campbell, director of telecommunications at the ACCC, said the regulatory body believed the draft decision could possibly lead to lower prices in the fixed to mobile market.
Currently only GSM mobile services are regulated. Campbell said this draft decision was extending the declaration of principles which existed for GSM to include CDMA services. According to Campbell, CDMA had not been included in the original 1997 declaration because the services had not been in existence at the time.
Campbell described the draft decision as a -lighthanded approach to regulation". He said the draft decision would go to the Commission once the call for submissions had closed, with a decision likely to be effective from the end of February or early March next year.
He said the ACCC was monitoring the mobile market much more closely at the moment, due to price increases from some carriers.
A statement from the ACCC proposed that the draft decision would assist in the development of a more level playing field for carriers, and help to remove potential inefficiencies which could exist if GSM was the only mobile services to be regulated.
T(H)elstra just HATES ANYTHING & ANYONE who challenges its monopoly.
Grow up guys. Its a free & competitive market. Or rather, Its supposed to be !!!!! ??????
The only way it comes close at present is because we have the ACCC trying to make it so.