Competition regulators propose pricing protocol for Telstra

01 Sep 2006

The Australian Competition and Consumer Commission (ACCC) published an information paper on the pricing of Telstra's key wholesale services and dependent retail services, an ACCC statement said.

The statement said the ACCC paper comprises a 'retail pricing protocol' and is published as part of the government's operational separation regime.

It outlines the ACCC's views on assessing potentially anti-competitive behavior in telecommunications markets, and on the concept of 'price equivalence' which is an important element of the operational separation of Telstra.

The retail pricing protocol seeks to promote equivalent pricing across Telstra's wholesale and retail businesses.

It provides details on the nature and timing of the calculations that Telstra should make in the course of its pricing decisions, and the information concerning those calculations that it should make public.

However, the protocol is not binding on Telstra, the ACCC said.

'It is envisaged that as a result of publishing the protocol Telstra will be better able to assess whether particular pricing is likely to be anti-competitive and to be avoided when making pricing decisions," Graeme Samuel, ACCC chairman said.

The ACCC said it based the retail protocol on Australia's Telecommunications Legislation Amendment which seeks to support greater equivalence and transparency in Telstra's pricing.

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