Trade Practices Act 1974 Determination under section 152AQA Pricing principles for the Unconditioned Local Loop Service (Cth)

Pricing Principles for the Unconditioned Local Loop Service

as amended

made under section 152AQA of the

Trade Practices Act 1974

This compilation was prepared on 4 August 2008
taking into account amendments up to Pricing Principles for the Unconditioned Local Loop Service Amendment Determination 2008 (No. 1)

Prepared by the Office of Legislative Drafting and Publishing,
Attorney‑General’s Department, Canberra

TRADE PRACTICES ACT 1974

Section 152AQA

Pricing Principles for the Unconditioned Local Loop 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 specified in Schedule 1 and indicative prices specified in Schedule 2 are to apply
to the Unconditioned Local Loop Service (ULLS) declared by the Commission under section 152AL of the Act.

This Determination commences on the day it is made.

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

Made by the Australian Competition

and Consumer Commission on

21 November 2007

Graeme Samuel

Chairman

Schedule 1 — PRICING PRINCIPLES

The Commission’s pricing principles for the ULLS are:

§     a TSLRIC+ Pricing principles 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

§     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

1.       The indicative prices for ULLS monthly charges on a per service per month basis for Band 1, 2 and 3 for the period to 31 July 2009 are:

ULLS Monthly Charges

Band	2005-06	2006-07	2007-08	2008-09
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

No indicative price is set for Band 4.

2.       The indicative prices for ULLS Single Connection Charges (including in-use ULLS and transfer ULLS connections) for the period 1 July 2008 to 31 July 2009 are:

ULLS Single Connection Charges

Band	2004-05	2005-06	2006-07	2007-08	2008-09
1	$    38.10	$   38.10	$    44.00	$   50.10	$    50.40
2	$    43.10	$   43.10	$    47.80	$   52.80	$    53.10
3	$    51.50	$   51.50	$    54.10	$   57.40	$    57.70

No indicative price is set for the ULLS in Band 4.

3.       The indicative prices for ULLS Managed Network Migration (MNM) Connection Charges for the period to 31 July 2009 are:

ULLS MNM Connection Charges

(a)     For the period from 1 July 2007 to 30 June 2008:

Component	Charge
– Fixed amount	$ 135.60 (per MNM)
– Variable amount	+ $ 24.90 (per connection)

(b)     For the period from1 July 2008 to 31 July 2009:

Component	Charge
– Fixed amount	$ 138.00 (per MNM)
– Variable amount	+ $ 25.00 (per connection)

ULLS Cancellation charges

4.       The ACCC’s final indicative price for cancellations of individual services where pre‑jumpering has occurred is $20 per service and $138.00 per MNM (2008-09 fixed cost for the MNM) where the migration is completely cancelled.

ULLS Call Diversion Charges

5.       The indicative prices for the initial connection/activation of ULLS call diversion are $9.20 for the period 1 July 2007 to 30 June 2008 and $9.30 for the period 1 July 2008 to 31 July 2009. 

6.       The indicative price for the monthly charge of ULLS call diversion is pro rata $12.50 per month per service for the period to 31 July 2009.

Notes to the Pricing Principles for the Unconditioned Local Loop Service

Note 1

The Pricing Principles for the Unconditioned Local Loop Service (in force under section 152AQA of the Trade Practices Act 1974) as shown in this compilation is amended as indicated in the Tables below.

Table of Instruments

Title	Date of FRLI Registration	Date of commencement	Application, saving or transitional provisions
Pricing Principles for the Unconditioned Local Loop Service	14 Dec 2007 (see F2007L04646)	21 Nov 2007
Pricing Principles for the Unconditioned Local Loop Service Amendment Determination 2008 (No. 1)	16 June 2008 (see F2008L02120)	16 June 2008	—

Table of Amendments

ad. = added or inserted      am. = amended      rep. = repealed      rs. = repealed and substituted
Provision affected	How affected
Para. 1.................................................	rs. 2008 No. 1
Schedule 1
Heading to Schedule 1....................	rs. 2008 No. 1
Schedule 2
Schedule 2.........................................	ad. 2008 No. 1