ACCC likely to continue regulating ADSL access
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Australian competition regulator the ACCC has made a draft decision to continue regulating access to Telstra’s wholesale ADSL network for a further five years.
Former government monopoly Telstra is required to provide access to its ADSL network to competitors due to its dominant position in both the wholesale and retail ADSL markets. When a commercial agreement cannot be reached, Telstra must provide access at regulated prices.
The ACCC had been investigating whether regulated access was still necessary given the progress of the rollout of the national broadband network (NBN).
“Telstra retains its dominant position in both the wholesale and retail markets for the supply of ADSL fixed-line broadband services on a national level,” ACCC commissioner Cristina Cifuentes said.
“Continuing regulation will ensure network providers continue to have access to Telstra’s copper network at reasonable prices. This will encourage them to continue competing in the retail market to develop and offer different ADSL broadband products to meet the needs of customers as they prepare to shift to the NBN.”
A final decision on the matter is expected in early 2017, before the current access declaration expires.
Questions & Answers
Q.Why does the ACCC regulate access to Telstra’s ADSL network?
Why does the ACCC regulate access to Telstra’s ADSL network?
The ACCC regulates access because Telstra holds a dominant position in both the wholesale and retail ADSL markets. This ensures competitors can still access the network when commercial agreements are not reached.
Q.What is the primary benefit of continued regulation for other network providers?
What is the primary benefit of continued regulation for other network providers?
Continued regulation ensures network providers can access Telstra's copper network at reasonable prices. This allows them to compete in the retail market by developing different ADSL broadband products for customers transitioning to the NBN.
Q.What prompted the ACCC to review the necessity of regulating ADSL access?
What prompted the ACCC to review the necessity of regulating ADSL access?
The ACCC initiated an investigation to determine if regulated access was still necessary. This review was prompted by the ongoing progress of the national broadband network (NBN) rollout across Australia.
Q.When is the ACCC expected to make a final decision on this matter?
When is the ACCC expected to make a final decision on this matter?
A final decision from the ACCC is anticipated in early 2017. This timeframe is crucial as it precedes the expiration of the current access declaration that governs Telstra’s wholesale ADSL network.