Document ID: chunk:federal_register_of_legislation:C2012C00891:clause:1_74
Version: federal_register_of_legislation:C2012C00891
Segment Type: clause
Provision Reference: sch 1 cl 74
Character Range: 95232–97360

74  Functional separation principles
 (1) The functional separation principles are as follows:
 (a) the principle that there should be equivalence in relation to the supply by Telstra of regulated services to:
 (i) Telstra's wholesale customers; and
 (ii) Telstra's retail business units;
 (b) the principle that Telstra should maintain:
 (i) one or more retail business units; and
 (ii) a wholesale/network business unit;
 (c) the principle that Telstra should maintain arm's length functional separation between:
 (i) its wholesale/network business unit; and
 (ii) its retail business units;
 (d) the principle that Telstra should have systems, procedures and practices that relate to:
 (i) compliance with a final functional separation undertaking; and
 (ii) monitoring of, and reporting on, compliance with a final functional separation undertaking; and
 (iii) the development of performance measures relating to compliance with a final functional separation undertaking; and
 (iv) independent audit, and other checks, of compliance with a final functional separation undertaking;
 (e) the principle that Telstra's wholesale/network business unit should not consult Telstra's retail business units about:
 (i) proposed services to be supplied by Telstra's wholesale/network business unit; or
 (ii) proposed developments in connection with services supplied by Telstra's wholesale/network business unit;
  unless Telstra's wholesale/network business unit also consults Telstra's wholesale customers at the same time and in the same manner.
 (2) In determining the principle of equivalence covered by paragraph (1)(a), regard must be had to whether:
 (a) the terms and conditions relating to price or a method of ascertaining price; and
 (b) other terms and conditions;
on which Telstra supplies regulated services to its wholesale customers are no less favourable than the terms and conditions on which Telstra supplies those services to its retail business units.
 (3) Subclause (2) does not limit the matters to which regard may be had.
 (4) To avoid doubt, this clause does not affect the meaning of anything in Part 33.