EXPLANATORY STATEMENT

Telecommunications (Consumer Protection and Service Standards) Act 1999

Telstra Carrier Charges––Price Control Arrangements, Notification and Disallowance Determination No. 1 of 2001

Issued by the authority of the Minister for Communications,

Information Technology and the Arts

OVERVIEW

The Determination is made under the Telecommunications (Consumer Protection and Service Standards) Act 1999 (the Act).

The price controls under this Determination take effect on 1 July 2001 and expire on 30 June 2002.  The Determination replaces Telstra Carrier Charges––Price Control Arrangements, Notification and Disallowance Determination No. 1 of 2000 which expired on 30 June 2001.

Under the Act, the Minister has certain powers to regulate the charges set by Telstra for its services.  The Determination is made under the following sections of the Act:

• subsection 154(1), which provides that the Minister may determine that specified Telstra charges are subject to price control arrangements;

• paragraph 155(1)(a), which provides that the Minister may determine price-cap arrangements and other price control arrangements that are to be applied in relation to a Telstra charge that is subject to price control arrangements;

• paragraph 155(1)(b), which provides that the Minister may determine principles in accordance with which Telstra is to make alterations to a charge that is subject to price control arrangements; and

• subsection 157(1), which provides that the Minister may determine that specified Telstra charges are subject to notification and disallowance.

The Telstra services that are subject to price control arrangements are listed in Part 2 of the Determination.  The price-cap and other price control arrangements for these services are set out in Part 3.  The principles that are to apply in relation to alterations to certain Telstra charges are set out in Part 4.  The Telstra charges that are subject to notification and disallowance are set out in Part 5.  Part 6 provides for the carryover of price-caps to the 2002/2003 financial year.

In summary, the effect of the Determination is as follows:

• A CPI-5.5 per cent price-cap applies to a basket of eight of Telstra’s services: connections, line rentals, local, trunk and international calls, domestic and international leased lines and digital cellular mobile telephone services (this means that the charge for these services as a group fall, in real terms, by 5.5 per cent each year).

• A CPI price-cap applies to a basket of line rentals and local call services (this means that the charge for these services as a group must not rise in real terms each year).

• A CPI price-cap also applies to a basket of connection services.

• A CPI-1 per cent price-cap applies to a basket of fixed-line services (connections, line rentals, local, trunk and international call services) consumed by residential customers, with revenue weights set at the average for the bottom 50 per cent of Telstra’s pre-selected residential customers, by bill size (this means that the charges for these services as a group must fall, in real terms, by 1 per cent each year).

• Where Telstra proposes to increase a line rental charge for residential customers by more than the change in the CPI, and that line rental service is used by one or more of the bottom 10 per cent of Telstra’s pre-selected customers, Telstra must obtain prior consent for that increase from the Australian Competition and Consumer Commission (the ACCC).  In such cases (unless the ACCC waives the requirements), Telstra is required to give at least 30 days notice to the ACCC of the proposed increase and to give the ACCC information that will enable the ACCC to assess whether consent should be given.  The ACCC must give or refuse its consent within 30 days, and must not give consent unless satisfied that Telstra has available, or will make available, products or other arrangements which, if taken up by affected customers in the bottom 10 per cent group would ensure that their average telephone bill does not increase in real terms.

• Where Telstra proposes to increase its standard retail price for untimed calls, Telstra must obtain prior consent for that increase form the ACCC.  The 30 day time periods again apply.
   
• With effect from 31 July 2001:

-       an untimed local call rate will apply to calls between customers within an Extended Zone and between a customer in an Extended Zone and a customer in an adjacent Extended Zone;

-       a preferential rate of 27.5 cents per 12 minute block of time (or part thereof) will apply to calls between a customer in an Extended Zone and a customer in a designated community service town for that Zone or for an adjacent Extended Zone; and

-       an untimed local call rate will apply where a customer in an Extended Zone connects to Telstra’s Big Pond Internet service.

• The revenue-weighted average untimed local call price from residential lines in non-metropolitan Australia in 2000/2001 is not to exceed the revenue-weighted average local call price in metropolitan Australia in 1999/2000 by 0.4 per cent.

• The revenue-weighted average untimed local call price from business lines in non-metropolitan Australia in 2000/2001 is not to exceed the revenue-weighted average local call price in metropolitan Australia in 1999/2000 by 0.4 per cent.

• The revenue-weighted average untimed local call price from residential lines in non-metropolitan Australia in 2001/2002 is not to exceed the revenue-weighted average local call price in metropolitan Australia in 2000/2001 by 0.4 per cent.

• The revenue-weighted average untimed local call price from business lines in non-metropolitan Australia in 2001/2002 is not to exceed the revenue-weighted average local call price in metropolitan Australia in 2000/2001 by 0.4 per cent.

• The price for untimed local calls is not permitted to rise above the current charges of 22 cents for calls made from a residential or business phone, and 40 cents for calls made from a public phone, except that it may rise up to 25 cents using a product or arrangement under which the average telephone bill of the lowest-bill residential customers does not increase in real terms.

• Charges for Telstra’s directory assistance services are subject to notification and disallowance.  (Section 158 of the Act  providesAct provides that Telstra must inform the Minister of proposals to alter charges subject to notification and disallowance; it also provides that the Minister may, after taking account of a report received from the ACCC on the proposal, disallow the proposed alterations if the Minister is of the opinion that they are not in the public interest).

NOTES ON CLAUSES

Part 1   Introductory

Clause 1  – Name of Determination

Clause 1 provides that the name of the Determination is the Telstra Carrier Charges–Price Control Arrangements, Notification and Disallowance Determination No. 1 of 2001.

Clause 2 – Commencement

Clause 2 provides that the Determination commences on 1 July 2001.

Clause 3 – Expiry of this Determination

Clause 3 provides that the Determination expires on 30 June 2002.

Clause 4 – Interpretation

Clause 4 provides definitions of terms used in the Determination, most of which are self-explanatory. 

A customer who is “pre-selected to Telstra” in the definition of “low-bill residential customer” is intended to refer to customers who have chosen to have their service configured so that Telstra is their service provider for domestic long distance and international calls, unless an override code is used. 

The definition of “trunk call” is intended to include services such as the Pastoral and Community Call services currently offered to rural and urban fringe customers; and calls to any cellular mobile telephone service. 

Connection, line rental and call services include those supplied to customers using TTY equipment, where those services are similar to or the same as such services supplied to customers using, for example, a handset. 

A standard retail price (see subclause 4(4)) is intended to include Telstra’s standard local call charge, but not discounted charges.  Certain other local call charges are excluded from the standard retail price, namely the neighbourhood call charge, the public creditphone local call charge and the commercial credit card local call charge (see subclause 4(5)).  A neighbourhood call is a call within the same exchange area, that is a subset of the local call area. 

Clause 5 – Alteration in value of service

Paragraph 5(a) provides that the ACCC may form the view that the price of a service has increased where the value of the service is reduced because Telstra reduces the quality of the service provided and the ACCC considers an effect of that is to circumvent the operation of the Act to control price increases.  This may apply to situations where Telstra ceases to provide a service and subsequently offers a similar service in its place.

Paragraph 5(b) provides that an increase in the value of a service due to an improvement in service quality may be taken by the ACCC as a decrease in the price charged.

Clause 6 – No application to a carrier charge for a carrier service or facility supplied to another carrier or carriage service provider

Clause 6 provides that the Determination does not apply to charges for access by other carriers or carriage service providers to Telstra’s services and facilities.

Part 2 Carrier charges subject to price control arrangements

Clause 7 – Carrier charges subject to price control arrangements

Clause 7 specifies the services that are subject to price control arrangements as required under subsection 154(1) of the Act.  That subsection enables the Minister to determine in writing that specified carrier charges are subject to price control arrangements.

Subclause 7(1) provides that the price-cap arrangements apply to the carrier charges for services listed.

Subclause 7(2) excludes maritime mobile services (including services known as Inmarsat services and Seaphone services), Radphone services and public access cordless telephone services (PACTS) from the price controls.

Part 3 Price control arrangements

Division 1 Price cap arrangements

Clause 8 – Application of price-caps

Clause 8 applies the price-caps shown in the Schedule to the four baskets of services described in clause 4.

Paragraph 8(a) applies a price-cap of CPI - 5.5 per cent to the “first basket of services”, as defined in clause 4 and listed in subclause 7(1).

Paragraph 8(b) applies a price-cap of CPI - 0 per cent to the “second basket of services”, as defined in clause 4.

Paragraph 8(c) applies a price-cap of CPI - 0 per cent to the “third basket of services”, as defined in clause 4.

Paragraph 8(d) applies a price-cap of CPI - 1 per cent to the “fourth basket of services”, as defined in clause 4.

Clause 9 – Calculation of price movement

Subclause 9(1) provides that the value of price movements, for each component product of the first, second and third baskets of services referred to in the Schedule are to be summed and that they include price movements for standard services and discount packages.  The price movement of each component product of the services in each basket is calculated from the price of the product at the end of the financial year immediately preceding the price-cap year.  The difference between the price of the previous year and the price of the current year is taken as the price movement.  The movement in price of each product is weighted by the revenue derived from that product in the price-cap year against the revenue derived from the basket in that year.

Subclause 9(2) provides that the value of price movements, for each component product of the fourth basket of services referred to in the Schedule are to be summed and that they include price movements for standard services and discount packages. The price movement of each component product of the services in the fourth basket is calculated from the price of the product at the end of the financial year immediately preceding the price-cap year.  The difference between the price of the previous year and the price of the current year is taken as the price movement.  The movement in price of each product is weighted by the revenue derived from sales of that product to low-bill residential customers in the price-cap year against the total revenue derived from sales of services in the fourth basket to low-bill customers in that year.

Subclause 9(3) provides that the net impact of the New Tax System changes, on the prices used to calculate price increases for the components of the services in each basket of services is to be disregarded.  The intention is that the price controls subject Telstra to the same degree of price constraint irrespective of the introduction of the New Tax System on 1 July 2000, by removing the impact of the New Tax System changes from the price controls, other than the local call capping arrangements.

Subclause 9(4) explains the term ‘net increase’ in subclause 9(3).  The net increase refers to the impact of the GST less the impact of the removal of a number of indirect taxes including Wholesale Sales Tax.  The ‘net increase’ is to be ascertained in accordance with guidelines the ACCC is required to formulate about when prices may be regarded as constituting prohibited price exploitation in relation to the New Tax System changes.

Subclause 9(5) provides that the price movements necessary for Telstra to comply with the local call capping arrangements are to be disregarded for the purposes of calculating price movements for the baskets of services.  The intention is that the price controls are not loosened merely because Telstra’s revenue is affected by not being allowed to increase its standard untimed local call price with the GST.

Subclause 9(6) provides that the value of the yearly price movement may be determined according to a methodology that is developed by the ACCC, in consultation with Telstra.

Subclause 9(7) provides that any methodology developed by the ACCC under subclause 9(6) must have regard to the policy objective that the impact on Telstra and its customers of the price control determination is to be the same as it would have been without the New Tax System changes.  The exceptions to this are that Telstra’s standard retail price for untimed local calls is not to increase with the GST, and other Telstra prices are not to increase, or be reduced by less than they otherwise would have been, to recover that revenue forgone.

Subclause 9(8) provides that any methodology that is developed under subclause 9(6) may also set out how specified provisions of the Determination are to apply, and subclause 9(9) provides that these provision would then apply in that manner.

Clause 10 – Errors in calculating a price movement

Subclause 10(1) provides that, subject to subclause (2), if the value of a price-cap that is to apply in a financial year to a basket of services specified in the Schedule is found to be incorrect because of an error in the value of the price movement of that basket that was determined for the previous financial year and the value of the incorrect price-cap is less than, or greater than, the value of the correct price-cap by more than 1 percentage point, the correct price-cap applies instead of the incorrect price-cap.

Subclause 10(2) provided that if it is too late in the financial year to which the correct price-cap applies for Telstra to be reasonably able to give full effect to  that price-cap, the price-cap for the basket for the next following financial year is varied by the amount of the difference between the incorrect price-cap and the correct price-cap.

Clause 11 – Calls in relation to the Extended Zones

Telstra has been selected as the successful tenderer to provide untimed local calls in the ‘Extended Zones’ in rural and remote areas of Australia.  These zones cover 80 per cent of Australia.  People living in these zones currently have to pay timed rates for local calls such as to a neighbour or the nearest town.  However, with effect from 31 July 2001, people who live in these extended zones will have access to telephone calls at the untimed local call rate and calls at the untimed local call rate to connect to the Internet via their Internet service provider. 

Clause 11 gives effect to these new arrangements.  It provides that with effect from 31 July 2001:
 

–               calls within an Extended Zone or to an adjacent Extended Zone will be untimed at a maximum local call charge of 22 cents per call – there are over 100 such extended zones, ranging from about 8,000 to 300,000 square kilometres in size;
 

–               calls between an Extended Zone and its ‘community service town’ or the community service towns of all adjacent Extended Zones will be charged at a preferential rate of 27.5 cents per 12 minute block of time (or part thereof); and
 

–               an untimed maximum 22 cent local call rate will apply where a customer in an Extended Zone connects to Telstra’s Big Pond Internet service.

Clause 12 – Untimed local calls

Subclause 12(1) provides that Telstra must offer a standard retail price for untimed local calls.  This provides a point of reference for implementation of the Government’s policy on the local call capping arrangements under the GST.

Subclauses 12(2) and (3) specify that if the charge for the call is worked out regardless of how long it lasts, Telstra must not charge more than 22 cents for a local call and 40 cents for a local call made from a public payphone.

Subclause 12(4) provides that a price-cap of 25 cents, rather than 22 cents, applies to Telstra’s products or arrangements for the 10 per cent lowest-bill customers under arrangements made pursuant to paragraph 21(1)(a) which ensures the average telephone bill of these customers does not increase in real terms.  This is to ensure that customers who make few telephone calls are not too adversely affected by Telstra rebalancing line rental and local call charges.

Subclause 12(5) provides that from 1 July 2000 Telstra’s standard retail price for untimed local calls must not exceed its standard retail price prior to the introduction of the GST.  The intention of this subclause is to ensure Telstra does not increase the price of the standard untimed local call with the introduction of the GST.

Subclauses 12(6) to 12(22) provide for the continuation of the “local call pricing parity scheme”, which commenced on 1 January 1998, taking into account the impact of the New Tax System changes and providing for non-contravention for minor failure to meet obligations to reduce prices.  Under the scheme, local call prices in non-metropolitan areas (as defined in subclause 12(20)) in one period must not, on average, exceed local call prices in metropolitan areas in an earlier period.

Subclause 12(6) specifies that the revenue-weighted average untimed local call price for residential/charity customers in non-metropolitan Australia in the 2000/2001 financial year is not to exceed the revenue-weighted average local call price for residential/charity customers in metropolitan Australia in the 1999/2000 financial year.  Subclause 12(21) requires Telstra to make up any failure in the following year.

Subclause 12(7) provides that should Telstra fail to meet the requirements of subclause 12(6) it will not be taken to have contravened the price controls unless the 0.4 percentage points figure is exceeded. 

Subclause 12(8) specifies that, subject to subclause 12(21), the revenue-weighted average untimed local call price for residential/charity customers in non-metropolitan Australia in the 2001/2002 financial year is not to exceed the revenue-weighted average local call price for residential/charity customers in metropolitan Australia in the 2000/2001 financial year. 

Subclause 12(9) provides that should Telstra fail to meet the requirements of subclause 12(8) it will not be taken to have contravened the price controls unless the 0.4 percentage points figure is exceeded.

Subclause 12(10) specifies that the revenue-weighted average untimed local call price for business customers in non-metropolitan Australia in the 2000/2001 financial year is not to exceed the revenue-weighted average local call price for business customers in metropolitan Australia in the 1999/2000 financial year.  Subclause 12(22) requires Telstra to make up any failure in the following year.

Subclause 12(11) provide that should Telstra fail to meet the requirements of subclause 12(10) it will not be taken to have contravened the price controls unless the 0.4 percentage points figure is exceeded. 

Subclause 12(12) specifies that, subject to subclause 12(22), the revenue weighted average untimed local call price for business customers in non-metropolitan Australia in the 2001/2002 financial year is not to exceed the revenue-weighted average local call price for business customers in metropolitan Australia in the 2000/2001 financial year.

Subclause 12(13) provides that should Telstra fail to meet the requirements of subclause 12(12) it will not be taken to have contravened the price controls unless the 0.4 percentage points figure is exceeded.

Subclauses 12(14) and (15) provide a methodology for calculating the revenue-weighted average local call prices in subclauses 12(6), (7), (8), (9), (10), (11), (12) and (13).  The prices are calculated by dividing total Telstra untimed local call revenue from business or residential/charity customers in metropolitan areas or non-metropolitan areas in a given financial year by the total number of untimed local calls made by Telstra business or residential/charity customers in metropolitan areas or non-metropolitan areas in that year.

Subclause 12(16) provides that the revenue impact on the “local call pricing parity scheme” of the New Tax System changes is nullified.  The exception is that Telstra’s standard retail price for untimed local calls is not to increase with the GST and Telstra must not increase prices of other services, nor reduce prices by less than it otherwise would have, to recover the revenue forgone.

Subclause 12(17) provides definitions of terms used in this clause, while subclause 12(18) provides that the scheme does not apply to certain local calls specified in that subclause.

Subclause 12(19) makes clear that the scheme applies only to local calls, the charge for which is worked out regardless of the duration of the call, ie “untimed” local calls.

Subclause 12(20) provides definitions of terms used in subclause (6) to (18).  The definition of “inter-carrier charge area” (ICCA) is based on the definition in the Telstra/Optus Main Access Agreement entered into on 14 August 1992 and registered with AUSTEL (the previous telecommunications regulator), and has the same meaning as the term ‘charge area’ used in the Telecommunications (Interconnection and Related Charging Principles) Determination No. 1 of 1991. 

Subclause 12(21) provides that if Telstra fails to meet the “local call pricing parity scheme” requirement for residential/charity customers as provided for under subclause 12(6), then it must make up the following year the amount by which it failed to comply multiplied by the CPI for the year for which it failed to comply.

Subclause 12(22) provides that if Telstra fails to meet the “local call pricing parity scheme” requirement for business customers provided for under subclause 12(10), then it must make up the following year the amount by which it failed to comply multiplied by the CPI for the year for which it failed to comply.

Clause 13 – Line rental for schools

Clause 13 provides that if Telstra supplies a school with a standard telephone service, the line rental that Telstra charges the school must not exceed the line rental for Telstra’s residential/charity customers, as defined in clause 4.  This provision has applied since 1 January 1999, and implements recommendation 4 of the Senate Environment, Recreation, Communication and the Arts Legislation Committee, in the report on its inquiry into the Telstra (Transition to Full Private Ownership) Bill 1998.

Clause 14 – Option to defer a price cap

Clause 14 provides that Telstra may elect to wholly or partially defer its obligations to reduce prices under the CPI - 5.5 per cent price-cap for the first basket from 2000/2001 to 2001/2002 if the price-cap becomes no more than CPI - 5.5 per cent plus 0.4 percentage points.  The effect of this clause is that Telstra is able to defer up to 0.4 percentage points so it can defer the introduction of small price reductions which would otherwise be required under the formula.

Telstra may similarly elect to wholly or partially defer up to 0.1 percentage points of price reductions under the price-caps for the second, third and fourth baskets of services referred to in items 2, 3 and 4 of the Schedule.

Telstra may not elect to defer its obligations to reduce prices in relation to a price-cap that would apply in the 2001/2002 financial year.

Clause 15 – Reporting

Clause 15 provides that Telstra must report to the ACCC on its compliance with the price-cap within 3 months after the end of the financial year, in accordance with a format that the ACCC has specified after consulting with Telstra.

Clause 16 – Credits for not charging the maximum price

Clause 16 provides that if Telstra reduces prices by more than required by a price-cap, the price-cap for the subsequent financial year will be correspondingly less for that item.  No credit will apply, however, for price reductions exceeding the requirement in the 2001/2002 financial year.

Clause 17 – Reconciliation of price-cap for a basket of services

Subclause 17(1) provides that where the reconciliation process shows that the value of the price movement for a basket of services has not met the required price-cap, the price-cap for the following financial year can be varied by the unexercised amount of the cap for that year.

Subclauses 17(2) and 17(3) provide that in reconciling the 2001/2002 price-cap year, if Telstra is found to have failed to pass on required reductions in a basket of services it will be required to implement the remainder of the price reductions during the following financial year, that is, in 2002/2003.

Division 2 Other price control arrangements

Clause 18 – When the ACCC’s consent is required for the proposed alteration to a charge

Subclause 18(1) specifies when the prior consent of the ACCC is required to a proposed alteration to a Telstra line rental charge that is charged at residential rates and is used by one or more ‘lowest-bill residential customers’, as defined in subclause 18(2).

Paragraph 18(1)(a) provides that prior consent is required when the alteration would cause the increase in the charge to be greater than the CPI.  The change in the charge is taken to be the difference between the charge at the end of the financial year preceding that in which the proposed alteration is intended to take effect and the new proposed charge.

The provision is intended to apply where a price increase is greater than the CPI is proposed for any service or component of a service referred to above.

Paragraph 18(1)(b) provides that prior consent will also be required in the case where Telstra’s charge has, during a financial year, been less, for a total of more than 90 days, than the charge at the end of the preceding financial year.  In this case, the ACCC’s prior consent is required before the charge is subsequently raised to a charge that is greater, by more than the CPI, than the lowest price that has been charged during that year.  However, any charge that is offered for not more than five days at any one time (such as a one day “spot special” discount) can be disregarded for the purpose of the requirements of this paragraph.

Subclause 18(3) provides that prior consent of the ACCC is required to a proposed increase in Telstra’s standard retail price for untimed local calls.

Clause 19 – Notice of proposed alteration to be given to the ACCC

Clause 19 provides that where the prior consent of the ACCC to an alteration in a charge is required Telstra must give the ACCC at least 30 days’ notice of the alteration, unless the ACCC has waived the giving of notice.

Clause 20 – Information to be included in a notice

Clause 20 provides that a notice of a price alteration to which the ACCC’s consent is required must include information that, in the opinion of the ACCC, after consultation with Telstra, will enable the ACCC to access whether its consent should be given.  This does not apply if no information, or only some information, has been given and the ACCC has waived the requirement for that information to be given.  Notwithstanding the discretion given the ACCC under this provision to determine, at any time, what information it considers is needed to enable the ACCC to assess whether its consent should be given, there is nothing in this provision to preclude the ACCC from developing a standard set of minimum information requirements in consultation with Telstra.

Clause 21 – ACCC to consent or refuse within 30 days

Clause 21 provides that, where the ACCC’s consent to a price alteration is required and the carrier has given notice to the ACCC of the proposed alteration, then the ACCC must give or refuse its consent within a period of 30 days of being given the notice.

Part 4 Principles applying to alterations to certain charges

Clause 22 – Principles applying to price alterations for certain line rentals

Clause 22 sets out principles with which any price alteration requiring the consent of the ACCC under subclause 18(1) must accord.

Paragraph 22(1)(a) provides that any such alteration must not be made unless the ACCC is satisfied that Telstra has available, or will have available at the time the proposed alteration is made, alternative products or other arrangements (such as rebates) which, if taken up by the lowest-bill residential customers affected by the proposed increase, would ensure that the average telephone bill of these customers would not increase in real terms (ie by more than the CPI).

Paragraph 21(1)(b) excludes price alterations attributable to the New Tax System changes when the ACCC is considering whether a price alteration would lead to an increase in real terms in the average telephone bill of lowest-bill residential customers.

Subclause 21(2) defines a lowest-bill residential customer for the purpose of subclause 22(1), giving the term a meaning which is different from the meaning given in clause 18.  While the definition in clause 18 is retrospective, referring to the group of lowest spending customers during the 30 days prior to notification of the proposal, the definition in clause 21 is prospective, referring to the group of lowest spending customers at the time of the alteration.

Clause 23 – Principles applying to certain price alterations for certain untimed local call charges

Clause 23 sets out principles with which any price alteration requiring the consent of the ACCC under subclause 18(3) must accord.

Paragraph 22(a) provides that any such alteration must not be made unless the ACCC is satisfied that the proposed alteration is in the long-term interests of end-users of carriage services.

Paragraph 22(b) provides the alteration must not be made unless the ACCC is satisfied that the proposed alteration is not for the purpose of Telstra reducing its financial cost of complying with the Government’s policy that

(i)                 standard retail prices for untimed local calls do not increase with the GST; and

(ii)               Telstra not increase prices of any other services to recover the revenue foregone as a result of (i); and

(iii)            Telstra not reduce prices of other services by less than it otherwise would have, to recover the revenue foregone as a result of (i).

Part 5 Carrier charges subject to notification and disallowance

Clause 24 – Specification of charges

Clause 24 specifies that Telstra charges for the provision of information (known as “directory assistance”) are subject to notification and disallowance under section 157 of the Act.

Part 6 2002/2003 Price caps established to allow carryover of variations

Clause 25 – Price-caps for the 2002/2003 financial year

Clause 25 provides that in the absence of a future determination to the contrary, the price-caps set out in this Determination will continue to apply in the financial year immediately follow the expiry of the Determination, that is in 2002/2003, as if the Determination had not expired.

Schedule Price-caps for price movements

The Schedule contains 4 items which set out the price movements allowed in the charges for four baskets of services provided by Telstra which are described in clause 4.

REGULATION IMPACT STATEMENT

[To be inserted]