Telstra forces dispute resolution review

The Australian Competition and Consumer Commission has released its draft guide for the resolution of telecommunications access disputes, following an independent review showing unique problems in the industry.

-Telstra controls the fixed network which has natural monopoly characteristics, which means no-one's ever going to duplicate it," ACCC general manager of telecommunications, Michael Cosgrave, told ZDNet Australia. -They also compete in the retail space. Inevitably in that circumstance you're always going to get disputes, and it's important that people know how we deal with disputes in that situation."

The revisions have been deemed necessary because of -special features that distinguish telecommunications arbitrations from typical commercial arbitrations", according to the independent review by Phillips Fox and Resolve Advisors.

The review found there is a lack of mutual commercial incentive to reach settlement, particularly when the monopolistic infrastructure provider also competes in the downstream markets. The situation is further complicated because the commission has to take into account "public interest" in its arbitration.

The review suggested the ACCC implement a case-by-case approach to the dispute resolution process, overseen by a case management team.

The ACCC is accepting submissions concerning the draft guide until June 14.

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