Regulator issues accounting separation report for Telstra

06 Oct 2006

The Australian Competition and Consumer Commission issued its 12th imputation testing and non-price terms and conditions report under the enhanced accounting separation regime for Telstra.

The report presents data for the quarter ending 30 June 2006.

The report presents key performance indicators that compare Telstra's customer service performance in meeting certain non-price terms and conditions for its wholesale and retail customers.

Key performance indicators for fixed-line telephony and ADSL services were also reported. The report does not reveal any systematic discrimination by Telstra against its wholesale customers.

The report also presents an imputation analysis that compares Telstra's retail prices to the prices of three core telecommunications access services.

The analysis is designed to give an indication whether there are likely to be sufficient margins between Telstra's retail prices and the prices it charges other service providers to use the core services (plus related costs) to allow efficient firms to compete at the retail level.

The analysis is not intended to detect all forms of potentially anti-competitive conduct.

The results for fixed-line voice services show that imputed margins have declined for all services, except for fixed-to-mobile calls and residential international calls which have remained the same.

The results for services supplied over the unconditioned local loop core service indicate that imputed margins remain negative except when the ULLS is used to supply a bundle of ADSL and voice services to business customers.

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