Federal Register of Legislation - Australian Government

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Determinations/Communications as made
This instrument determines the pricing principles and price-related terms and conditions to apply to the Local Carriage Service.
Administered by: Communications and the Arts
Registered 09 Dec 2009
Tabling HistoryDate
Tabled HR02-Feb-2010
Tabled Senate02-Feb-2010
Date of repeal 01 Jan 2011
Repealed by Other
Repealing Comments Enabling provision repealed by Schedule 1, Part 2, Division 1, item 135 of the Telecommunications Legislation Amendment (Competition and Consumer Safeguards) Act 2010.

Pricing Principles for the Local Carriage Service (LCS) Determination 2009

Trade Practices Act 1974

The AUSTRALIAN COMPETITION AND CONSUMER COMMISSION makes this Determination under section 152AQA of the Trade Practices Act 1974.

Dated            3 December 2009

 

 

Graeme Samuel

                                                                                                                            Chairman

                                                                                                                                          

Australian Competition and Consumer Commission

1          Name of Determination

            This Determination is the Pricing Principles for the Local Carriage Service (LCS) Determination 2009.

 

2          Commencement

            This Determination commences on the day it is made.

Note: The Australian Competition and Consumer Commission must have regard to this Determination if it is required to arbitrate an access dispute under Division 8 of the Trade Practices Act 1974 in relation to the declared services covered by this Determination (see subsection 152AQA(6)). An arbitral determination may be backdated (see section 152DNA).

 

3          Pricing principles and indicative prices

            The pricing principles specified in Schedules 1, 3 and 5 and the indicative prices specified in Schedules 2, 4 and 6 are to apply to the Local Carriage Service (LCS) declared by the Australian Competition and Consumer


Commission (Commission) under section 152AL of the Trade Practices Act 1974 (Act).

 

4          Repeal of earlier Pricing Principles Determinations for the LCS

This Determination repeals the following instruments:

·                    Pricing Principles for the Local Carriage Service, Wholesale Line Rental Service and Public Switched Telephone Originating and Termination Services dated 29 November 2006;

·                    Pricing Principles for the Local Carriage Service and the Wholesale Line Rental Service dated 30 July 2008; and

·                    any earlier Pricing Principles Determinations made for the LCS.

 

 

Schedule 1        Pricing principles for the LCS for the period to 31 December 2007

 

An interim retail-minus-retail-costs (RMRC) pricing principle should be adopted until the Commission has a robust cost model available. In implementing the interim RMRC pricing principle, the Commission will use:

Ÿ          avoidable retail costs for the LCS rather than avoided retail costs;

Ÿ          unbundled benchmark retail prices; and

Ÿ          separate pricing of the LCS.

The Commission will seek to implement a cost-based pricing approach once a robust cost model, capable of producing reliable estimates of costs in all geographic regions, is available.

 

Schedule 2        Indicative prices for the LCS for the period to 31 December 2007

 

The indicative prices for the LCS for the period to 31 December 2007 are:

 

Local Calls

Telstra Retail Prices

20c ex GST

Unit Avoidable Retail Costs

2.29c/call

GST Adjustment

0.21c

Indicative Price

17.92c

 

 

 

 

 

 


Schedule 3        Pricing principles for the LCS for the period 1 January 2008 to 31 July 2009

 

An RMRC pricing principle should be adopted until the Commission has a robust cost model available. In implementing the interim RMRC pricing principle, the Commission will use:

Ÿ          avoidable retail costs for the LCS rather than avoided retail costs;

Ÿ          unbundled benchmark retail prices; and

Ÿ          separate pricing of the LCS.

The Commission will seek to implement a cost-based pricing approach once a robust cost model, capable of producing reliable estimates of costs in all geographic regions, is available.

 

 

 

 

Schedule 4        Indicative prices for the LCS for the period 1 January 2008 to 31 July 2009

 

 

The indicative prices for the LCS for the period from 1 January 2008 to 31 July 2009 are:

 

Local Calls

Telstra Retail Prices

20c ex GST

Unit Avoidable Retail Costs

2.90c/call

GST Adjustment

0.26c

Indicative Price

17.36c

 

 

 

 

 

 

 


Schedule 5        Pricing principles for the LCS for the period 1 August 2009 to 31 December 2010

 

An RMRC pricing principle should be adopted until the Commission has a robust cost model available. In implementing the interim RMRC pricing principle, the Commission will use:

Ÿ          avoidable retail costs for the LCS rather than avoided retail costs;

Ÿ          unbundled benchmark retail prices; and

Ÿ          separate pricing of the LCS.

The Commission will seek to implement a cost-based pricing approach once a robust cost model, capable of producing reliable estimates of costs in all geographic regions, is available.

 

 

Schedule 6        Indicative prices for the LCS for the period 1 August 2009 to 31 December 2010

 

The indicative prices for the LCS for the period 1 August 2009 to 31 December 2010 are:

 

 

Local Calls

Telstra Retail Prices

20c ex GST

Unit Avoidable Retail Costs

2.90c/call

GST Adjustment

0.26c

Indicative Price

17.36c