a point of interconnection a customer transmission point an access seeker network location a point of interconnection is a physical point of interconnection in Australia between a network operated by a carrier or carriage service provider and another network operated by a service provider a customer transmission point is a point located at customer equipment at a service provider’s customer’s premises in Australia (for the avoidance of doubt, a customer in this context may be another service provider) an access seeker network location is a point in a network operated by a service provider that is not a point of interconnection or a customer transmission point ACCC’s views The ACCC notes that submitters with the exception of Nextgen, either agree to retain current definitions or do not make any substantive submissions. The ACCC considers that Nextgen’s suggestion to define ‘customer transmission point’ provides further clarity and should be adopted into the service description. The ACCC notes that a ‘customer transmission point’ or ‘access seeker network location’ includes transmission point locations at mobile base stations. Other definitions of transmission points will be retained. Out-dated terminology The ACCC notes that a number of legislative changes have occurred since the last review of the DTCS declaration and that the service description should be updated to reflect these changes. The legislative changes include: the repeal of ordinary class exemptions (sections 152AS) and ordinary individual exemptions (section 152AT) from the CCA, and the replacement of the Trade Practices Act 1974 with the CCA. ACCC’s views The ACCC has decided to update the service description to account for legislative and other organisational/name changes that have occurred since the last declaration review. In doing so the ACCC has: replaced the Trade Practices Act 1974 with Competition and Consumer Act 2010 replaced the word ‘exempt’ with ‘deregulated’. Reference to ‘Exchange Service Areas’ in the DTCS service description The existing DTCS service description (and DTCS FAD) uses ESAs to identify the geographic boundaries of telecommunication services and networks while the NBN will be rolled out in regions called Fibre Serving Area Modules (FSAMs). Consideration has been
any other infrastructure by which the services are, or are likely to become, capable of being supplied. In considering incentives for investment in infrastructure, the Commission must have regard to the risks involved in making the investment. Economic efficiency has three components. Productive efficiency refers to the efficient use of resources within each firm such that all goods and services are produced using the least cost combination of inputs. Allocative efficiency refers to the efficient allocation of resources across the economy such that the goods and services that are produced in the economy are the ones most valued by consumers. It also refers to the distribution of production costs amongst firms within an industry to minimise industry-wide costs. Dynamic efficiency refers to the efficient deployment of resources between present and future uses such that the welfare of society is maximised over time. Dynamic efficiency incorporates efficiencies flowing from innovation leading to the development of new services, or improvements in production techniques. The Commission will need to ensure that the access regime does not discourage investment in networks or network elements where such investment is efficient. The access regime also plays an important role in ensuring that existing infrastructure is used efficiently where it is inefficient to duplicate investment in existing networks or network elements. The technical feasibility of supplying and charging for particular services This incorporates a number of elements, including the technology that is in use or available, the costs of supplying, and charging for, the services and the effects on the operation of telecommunications networks. In many cases, the technical feasibility of supplying and charging for particular services given the current state of technology may be clear, particularly where (as in the present case) the service is already declared and there is a history of providing access. The question may be more difficult where there is no prior access, or where conditions have changed. Experience in other jurisdictions, taking account of relevant differences in technology or network configuration, will be helpful. Generally the Commission will look to an access provider to demonstrate that supply is not technically feasible. The legitimate commercial interests of the supplier, including the ability of the supplier to exploit economies of scale and scope A supplier’s legitimate commercial interests encompass its obligations to the owners of the firm, including the need to recover the cost of providing services and to earn a normal commercial return on the investment in infrastructure. The Commission considers that allowing for a normal commercial return on investment will provide an appropriate incentive for the access provider to maintain, improve and invest in the efficient provision of the service.
Competitive Carriers’ Coalition Inc, Submission to Draft Decision on Domestic Transmission Capacity Service Declaration Review, 14 February 2014. Herbert Geer Lawyers on behalf of: iiNet Limited, ACCC Draft Report on the review of the declaration for the Domestic Transmission Capacity Service, 14 February 2014. Macquarie Telecom Pty Ltd, Domestic Transmission Capacity Service - Declaration Inquiry, 14 February 2014. NBN Co Limited, NBN Co Submission on ACCC Draft Report on the review of the declaration for the Domestic Transmission Capacity Service, 17 February 2014. Nextgen Group Holdings Pty Ltd, RE: Draft report on the review of the declaration for the DTCS, 17 February 2014. Regional Development Australia Sunshine Coast Inc., Re: Domestic Transmission Capacity Service Pricing, 4 February 2014. Regional Development Australia Wheatbelt WA Inc., Re: Domestic Transmission Capacity Service Pricing, 4 February 2014. Regional Development Australia Townsville and North West QLD, Re: Domestic Transmission Capacity Service – An ACCC Draft Report, 14 February 2014. Regional Development Australia Southern Inland, Declaration of Domestic Transmission Capacity Services, 14 February 2014. Singtel Optus Pty Limited, Submission in response to ACCC Draft Report on the review of the declaration inquiry for the Domestic Transmission Capacity Service, Confidential and Public versions, 14 February 2014. Telstra Corporation Limited, Submission to the Commission’s Draft Report on the review of the declaration for the Domestic Transmission Capacity Service, Confidential and Public versions, 14 February 2014. Vodafone Hutchison Australia Pty Ltd, Declaration Of The Domestic Transmission Capacity Service Submission to the Australian Competition and Consumer Commission, Confidential and Public versions, 14 February 2014. Submissions received in response to the Discussion Paper: AAPT Limited, Submission by AAPT Limited (September 2013) to Australian Competition and Consumer Commission, Domestic Transmission Capacity Service, “An ACCC Discussion Paper reviewing the declaration for the Domestic Transmission Capacity Service”(July 2013) (public and confidential version). Competitive Carriers’ Coalition Inc, Submission on Domestic Transmission Capacity Service, 30 August 2013.