Trade Practices Act 1974 - Determination under section 152AQA (30/06/2004)

TRADE PRACTICES ACT 1974

Determination under section 152AQA

The Australian Competition and Consumer Commission determines pursuant to section 152AQA of the Trade Practices Act 1974 (the Act) that the principles specified at Annexure 1 and the price related terms and conditions specified at Annexure 2 are to apply in respect of the Domestic Mobile Terminating Access Service.

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

This determination takes effect on 1 July 2004 and expires on 30 June 2007.

Note: A pricing determination may be repealed, rescinded, revoked, amended, or varied by the Commission.

(sgd) G J Samuel
…………………………..

Graeme Samuel

Chairman

For the Australian Competition and Consumer Commission

DATED:   30 June 2004

ANNEXURE 1

Principles relating to the price of access to the Domestic Mobile Terminating Access Service

The price of the Domestic Mobile Terminating Access Service should follow an adjustment path such that there is a closer association of the price and underlying cost (i.e. TSLRIC+) of the service.

This adjustment path should have the following characteristics:

           The starting price should be set at the lowest price at which the service is being supplied;

           The end price should be set at the upper end of the range of reasonable estimates of the TSLRIC+ of supplying the service that are currently available;

           The adjustment path should commence on 1 July 2004 and conclude on 1 January 2007;

           Decrements should initially be made on a six monthly basis then, as prices become more proximate to TSLRIC+, be made on an annual basis; and,

           Each decrement between the start price and end price should be of equal amount.

ANNEXURE 2

Price related terms and conditions relating to access to the Domestic Mobile Terminating Access Service

The price of access to the Domestic Mobile Terminating Access Service for the periods specified in Column 1 of the following table is as specified in column 2.