Telstra Carrier Charges Price Control Arrangements, Notification and Disallowance Determination No. 1 of 2002 (Amendment No. 1 of 2005) (Cth)
Commonwealth of Australia
Telecommunications (Consumer Protection
and Service Standards) Act 1999
Telstra Carrier Charges – Price Control Arrangements, Notification and Disallowance Determination No. 1 of 2002
(Amendment No. 1 of 2005)
I, HELEN LLOYD COONAN, Minister for Communications, Information Technology and the Arts, make the following Determination under subsections 154(1), 155(1) and 157(1) of the Telecommunications (Consumer Protection and Service Standards) Act 1999.
Dated 27 June 2005.
HELEN COONAN
Minister for Communications, Information Technology and the Arts
_________________________________________________________
Name of Determination
This Determination is the Telstra Carrier Charges – Price Control Arrangements, Notification and Disallowance Determination No. 1 of 2002 (Amendment No. 1 of 2005).
Commencement
This Determination commences on 1 July 2005.
3 Amendment of the Telstra Carrier Charges – Price Control Arrangements, Notification and Disallowance Determination No. 1 of 2002
Schedule 1 amends the Telstra Carrier Charges – Price Control Arrangements, Notification and Disallowance Determination No. 1 of 2002.
Schedule 1 Amendments
(clause 3)
[1] Clause 3
omit
30 June 2005
substitute
31 December 2005
[2] Subclause 5(1) (paragraph (a) of the definition of CPI number)
substitute
(a) for the weighted average of the 8 Australian capital cities for the 2004/2005 financial year; and
[3] Subclause 5(1) (after the definition of first basket of services)
insert
following relevant period means the period:
(a) commencing at the beginning of 1 January 2006; and
(b) concluding at the end of 30 June 2006.
[4] Subclause 5(1) (definition of price-cap year)
omit the definition
[5] Subclause 5(1) (after the definition of public payphone)
insert
relevant period means the period:
(a) commencing at the beginning of 1 July 2005; and
(b) concluding at the end of 31 December 2005.
[6] Subclause 5(3)
substitute
(3) In a formula in this Determination, the expression ‘ CPI – ’
2
followed by a numerical figure is taken to mean the CPI number reduced by half and then reduced by the value of the figure immediately following the expression.
[7] Subclause 5(4)
substitute
(4) In a formula in this Determination, the expression ‘ CPI + ’
2
followed by a numerical figure is taken to mean the CPI number reduced by half and then increased by the value of the figure immediately following the expression.
[8] Clause 9
omit
over each financial year
substitute
over the relevant period
[9] Subclause 10(1)
substitute
A price movement for:
(a)the first basket of services; or
(b)the second basket of services; or
(c)the third basket of services;
is taken to be the sum of the movements in the average price for each component product of the services in the relevant basket in the relevant period from the average price for that product in the financial year immediately preceding the relevant period (where the movement in average price of each product is weighted by the revenue derived from that product in the financial year immediately preceding the relevant period against the revenue derived from the relevant basket in the relevant period).
[10] Subclause 10(2)
after
in a financial year
insert
or in the relevant period
[11] Clause 11
substitute
11 Errors in calculating a price movement
If:
(a)the price-cap that is to apply in the relevant period to:
(i) the first basket of services; or
(ii) the second basket of services; or
(iii) the third basket of services;
is found to be incorrect because of an error in the value of the price movement of that basket that was determined for the financial year immediately preceding the relevant period under subclause 10(2); and
(b) the incorrect price-cap differs from the correct price-cap by more than 0.3 percentage points;
the correct price-cap applies instead of the incorrect price-cap.
[12] Subclause 13(4)
substitute
(4) Subject to subclause (13), the average price charged by Telstra to residential/charity customers in non-metropolitan areas for untimed local calls made in the relevant period (the first-mentioned average price) must not exceed the average price charged by Telstra to residential/charity customers in metropolitan areas for untimed local calls made in the financial year immediately preceding the relevant period (the second-mentioned average price).
[13] Subclause 13(6)
substitute
(6) Subject to subclause (14), the average price charged by Telstra to business customers in non-metropolitan areas for untimed local calls made in the relevant period (the first-mentioned average price) must not exceed the average price charged by Telstra to business customers in metropolitan areas for untimed local calls made in the financial year immediately preceding the relevant period (the second-mentioned average price).
[14] Subclause 13(13)
substitute
(13) If Telstra fails to meet the requirement in subclause (4) and clause 13 continues to apply in the following relevant period in accordance with clause 27, then, in relation to the following relevant period, the sum of:
(a) the average price charged by Telstra to residential/charity customers in non-metropolitan areas for untimed local calls made in the following relevant period; and
(b) an amount equal to the amount by which Telstra failed to comply with subclause (4) in the relevant period; and
(c) the amount referred to in paragraph (b) multiplied by the CPI number;
must not exceed the average price charged by Telstra to residential/charity customers in metropolitan areas for untimed local calls made in the relevant period.
[15] Subclause 13(14)
substitute
(14) If Telstra fails to meet the requirement in subclause (6) and clause 13 continues to apply in the following relevant period in accordance with clause 27, then, in relation to the following relevant period, the sum of:
(a) the average price charged by Telstra to business customers in non-metropolitan areas for untimed local calls made in the following relevant period; and
(b) an amount equal to the amount by which Telstra failed to comply with subclause (6) in the relevant period; and
(c) the amount referred to in paragraph (b) multiplied by the CPI number;
must not exceed the average price charged by Telstra to business customers in metropolitan areas for untimed local calls made in the relevant period.
[16] Clause 16
omit the clause
[17] Clause 17
substitute
17 Reporting
(1) Before the end of 3 months after the end of the 2004/2005 financial year, Telstra must report, in relation to its compliance with the price-cap that applied in that financial year in accordance with the terms of this Determination as in force immediately before 1 July 2005, to the ACCC in accordance with the requirements (if any) specified from time to time by the ACCC:
(a) in a written notice given by the ACCC to Telstra; and
(b) after consultation by the ACCC with Telstra.
(2) Before the end of 3 months after the end of the relevant period, Telstra must report, in relation to its compliance with the price-cap that applied in that period, to the ACCC in accordance with the requirements (if any) specified from time to time by the ACCC:
(a) in a written notice given by the ACCC to Telstra; and
(b) after consultation by the ACCC with Telstra.
[18] Clauses 18 and 19
omit the clauses
[19] Clause 20
substitute
20 Reconciliation of price-cap for a basket of services
(1) If:
(a) the value of the price movement of the first basket of services over the relevant period is greater than the price-cap for that period for the relevant basket plus 0.2 percentage points; and
(b) clauses 8, 9 and 10 continue to apply in the following relevant period in accordance with clause 27;
the price-cap for the relevant basket in the following relevant period is taken to be varied by the unexercised amount of the price-cap for the relevant period.
(2) If:
(a) the value of the price movement of the third basket of services over the relevant period is greater than the price-cap for that period for the relevant basket plus 0.1 percentage points; and
(b) clauses 8, 9 and 10 continue to apply in the following relevant period in accordance with clause 27;
the price-cap for the relevant basket in the following relevant period is taken to be varied by the unexercised amount of the price-cap for the relevant period.
[20] Part 6
substitute
Part 6 Price-caps for following relevant period established to allow carryover of variations
27 Price-caps for the following relevant period
Subject to any contrary intention in a determination succeeding this Determination, clauses 8, 9, 10, 13, 14, 15 and 20 of this Determination continue to apply in the following relevant period as if the remaining clauses in this Determination had not expired and as if:
(a) in clause 9, the reference to ‘the relevant period’ were a reference to ‘the following relevant period’;
(b) in subclause 10(1), the first and last references to ‘the relevant period’ were references to ‘the following relevant period’ and the references to ‘the financial year immediately preceding the relevant period’ were references to ‘the relevant period’; and
(c) in subclause 10(2), there were a reference to ‘ or in the following relevant period’ after the reference to ‘in the relevant period’.
[21] Schedule (Row 1 of column 3 of the table)
omit “CPI-4.5”, substitute “CPI-2.25”.
2
[22] Schedule (Row 2 of column 3 of the table)
omit “CPI+4.0”, substitute “CPI +2.0”.
2
0
0
0