Pricing Principles for the Unconditioned Local Loop Service (ULLS) Determination 2009 (Cth)
Pricing Principles for the Unconditioned Local Loop Service (ULLS) 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 Unconditioned Local Loop Service (ULLS) 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 and 3 and indicative prices specified in Schedules 2 and 4 are to apply to the Unconditioned Local Loop Service (ULLS) 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 ULLS
This Determination repeals the following instrument:
·Pricing Principles for the Unconditioned Local Loop Service made 21 November 2007 and subsequently amended by Pricing Principles for the Unconditioned Local Loop Service Amendment Determination 2008 (No. 1) on 16 June 2008; and
·any earlier Pricing Principles determinations for the ULLS.
Schedule 1 Pricing principles for ULLS for the period to 31 July 2009
The Commission’s pricing principles for the ULLS for the period to 31 July 2009 are:
§a TSLRIC+ pricing principle should be applied to the ULLS;
§a specific cost component should be included in the ULLS monthly price, calculated by combining ‘ULLS specific costs’ with ‘LSS specific costs’ and Telstra’s internal equivalent costs for ADSL, and allocating those costs across the number of active ULLS, LSS and ADSL lines;
§the ULLS charges should be geographically de-averaged; and
§connection charges should be set with reference to the amounts charged by third party contractors to Telstra for jumpering work in exchanges, indirect costs and back-of-house costs.
Schedule 2 Indicative prices for the ULLS for the period to 31 July 2009
ULLS Monthly Charges
The indicative prices for ULLS monthly charges on a per service per month basis for Bands 1, 2 and 3 for the period to 31 July 2009 are:
| Band | Until 30 June 2006 | 2006-07 | 2007-08 | 1 July 2008 – 31 July 2009 |
| 1 | $ 5.60 | $ 6.00 | $ 6.20 | $ 6.60 |
| 2 | $ 12.30 | $ 13.70 | $ 14.30 | $ 16.00 |
| 3 | $ 25.00 | $ 27.30 | $ 28.50 | $ 31.30 |
Note: No indicative price is set for Band 4.
ULLS Single Connection Charges – In use ULLS and Transfer ULLS connections
The indicative prices for ULLS Single Connection Charges (In-use ULLS and Transfer ULLS connections) for the period to 31 July 2009 are:
Band Until 30 June 2006 2006-07 2007-08 1 July 2008 – 31 July 2009 1 $ 38.10 $ 44.00 $ 50.10 $ 50.40 2 $ 43.10 $ 47.80 $ 52.80 $ 53.10 3 $ 51.50 $ 54.10 $ 57.40 $ 57.70
Note: No indicative price is set for the ULLS in Band 4.
Note: No indicative price is set for a Vacant ULLS connection.
Charges for ULLS Managed Network Migration – involving the transfer of end user data services from a Telstra wholesale PSTN and/or ADSL service, or from a line that Telstra is using to supply a ULLS to another access seeker (‘MNM’)
The indicative prices for ULLS connections in an MNM for the period to 31 July 2009 are:
Component Until 30 June 2006 2006-07 2007-08 1 July 2008 – 31 July 2009 – Fixed amount (per MNM) $126.00 $130.20 $ 135.60 $ 138.00 – Variable amount (per connection) + $24.30 + $24.60 + $ 24.90 + $ 25.00
The indicative prices for the cancellation of a ULLS order that was to be connected as part of a MNM are:
§ $20 per service on which pre-jumpering has occurred;
§plus, in those cases where the entire MNM scheduled for the exchange is cancelled, an additional charge per MNM that equals the fixed amount that was payable in respect of that MNM.
ULLS MNM minimum exchange charge
The indicative prices for the minimum exchange charge per MNM are:
Until 30 June 2006 2006-07 2007-08 1 July 2008 – 31 July 2009 Per exchange $612.00 $622.20 $ 633.60 $ 638.00
ULLS Call Diversion Charges
The indicative prices for the initial connection/activation of ULLS call diversion for the period to 31 July 2009 are:
Component Until 30 June 2006 2006-07 2007-08 1 July 2008 – 31 July 2009 – Fixed amount (per ULLS call diversion) $ 8.50 $ 8.80 $ 9.20 $ 9.30 – Variable amount (pro rata per month) $12.50 $12.50 $12.50 $12.50
Schedule 3 Pricing principles for the ULLS for the period 1 August 2009 to 31 December 2010
The Commission’s pricing principles for the ULLS for the period 1 August 2009 to 31 December 2010 are:
§a TSLRIC+ pricing principle should be applied to the ULLS;
§a specific cost component should be included in the ULLS monthly price, calculated by combining ‘ULLS specific costs’ with ‘LSS specific costs’ and Telstra’s internal equivalent costs for ADSL, and allocating those costs across the number of active ULLS, LSS and ADSL lines;
§the ULLS charges should be geographically de-averaged; and
§connection charges should be set with reference to the amounts charged by third party contractors to Telstra for jumpering work in exchanges, indirect costs and back-of-house costs.
Schedule 4 Indicative prices for the ULLS for the period 1 August 2009 to 31 December 2010
ULLS Monthly Charges
The indicative prices for ULLS monthly charges on a per service per month basis for Bands 1, 2 and 3 for the period 1 August 2009 to 31 December 2010 are:
| Band | 1 August 2009 – 31 December 2010 |
| 1 | $ 6.60 |
| 2 | $ 16.00 |
| 3 | $ 31.30 |
Note: No indicative price is set for Band 4.
ULLS Single Connection Charges – In use ULLS and Transfer ULLS connections
The indicative prices for ULLS Single Connection Charges (In-use ULLS and Transfer ULLS connections) for the period 1 August 2009 to 31 December 2010 are:
Band 1 August 2009 – 31 December 2010 1 $ 50.40 2 $ 53.10 3 $ 57.70
Note: No indicative price is set for the ULLS in Band 4.
Note: No indicative price is set for a Vacant ULLS connection.
Charges for ULLS Managed Network Migration – involving the transfer of end user data services from a Telstra wholesale PSTN and/or ADSL service, or from a line that Telstra is using to supply a ULLS to another access seeker (‘MNM’)
The indicative prices for ULLS connections in an MNM for the period 1 August 2009 to 31 December 2010 are:
Component 1 August 2009 – 31 December 2010 – Fixed amount (per MNM) $ 138.00 – Variable amount (per connection) + $ 25.00
The indicative prices for the cancellation of a ULLS order that was to be connected as part of a MNM are:
§ $20 per service on which pre-jumpering has occurred;
§plus, in those cases where the entire MNM scheduled for the exchange is cancelled, an additional charge per MNM that equals the fixed amount that was payable in respect of that MNM.
ULLS MNM minimum exchange charge
The indicative prices for the minimum exchange charge per MNM are:
1 August 2009 – 31 December 2010 Per exchange $ 638.00
ULLS Call Diversion Charges
The indicative prices for the initial connection/activation of ULLS call diversion for the period 1 August 2009 to 31 December 2010 are:
Component 1 August 2009 – 31 December 2010 – Fixed amount (per ULLS call diversion) $ 9.30 – Variable amount (pro rata per month) $12.50
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