Trade Practices Act 1974 Determination under section 152AQA Pricing principles for the Line Sharing Service (Cth)

TRADE PRACTICES ACT 1974

Section 152AQA

Pricing Principles for the Line Sharing Service

The Australian Competition and Consumer Commission (the Commission) determines, pursuant to section 152AQA of the Trade Practices Act 1974 (the Act), that the pricing principles and price-related terms and conditions specified in Schedule 1 are to apply to the Line Sharing Service (LSS) declared by the Commission under section 152AL of the Act.

Note: for the effect of this determination, see subsection 152AQA(6) of the Act.

Made by the Australian Competition

and Consumer Commission on

24 October 2007

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Graeme Samuel

Chairman

SCHEDULE 1

Part 1 – Pricing Principles

The Commission’s pricing principles for LSS are:

§     a TSLRIC+ pricing principles should be applied to the LSS

§     a specific cost component should be included in the LSS monthly price, calculated by combining ‘LSS specific costs’ with ‘ULLS specific costs’ and Telstra’s internal equivalent costs for ADSL, and allocating those costs across the number of active ULLS, LSS and ADSL lines

§     a contribution for line costs will not be recovered in the LSS monthly price

§     connection and disconnection 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.

Part 2 – Price related terms and conditions

The Commission has issued the following indicative prices for the LSS to apply between 1 January 2008 and 31 July 2009:

Charge

LSS monthly charge

$2.50 per service (1 Jan 2008 to 31 Jul 2009)

LSS connection not made in a managed network migration (MNM)

$41.40 per connection (1 Jan 2008 to 30 Jun 2008)

$43.10 per connection (1 Jul 2008 to 31 Jul 2009)

LSS disconnection not made in a managed network migration 

$37.10 per connection (1 Jan 2008 to 30 Jun 2008)

$38.70 per disconnection (1 Jul 2008 to 31 Jul 2009)

However a disconnection charge will not be payable where:

§     the disconnection is made pursuant to the Telstra LSS churn process, or

• the access seeker is participating in the Telstra LSS churn process and Telstra (Bigpond) is not participating in the LSS churn process

LSS managed
network migration – fixed amount

$134.50 per MNM (1 Jan 2008 to 30 Jun 2008)

$140.10 per MNM (1 Jul 2008 to 31 Jul 2009)

LSS managed

network migration – variable amount

$30.90 per connection (1 Jan 2008 to 30 Jun 2008)

$32.20 per connection (1 Jul 2008 to 31 Jul 2009)

LSS managed
network migration –

minimum charge

$752.50 per exchange per MNM (1 Jan 2008 to 30 Jun 2008)

$784.10 per exchange per MNM (1 Jul 2008 to 31 Jul 2009)

LSS managed
network migration –

disconnection charge

$0 (1 Jan 2008 to 31 Jul 2009)