Australia - Analysis - Telecommunications Competition Act 2002

Synopsis

The year 2002 saw much political activity regarding Australia’s dominant telco. Proposals for the virtual or accounting separation of Telstra were welcomed across the industry. However, when the new legislation was announced half a year later it was clear that it will not significantly improve the telecoms market and will not lead to a notable increase in competition. Having said this, the new legislation is an improvement on the current regime. Paul’s analysis drew a critical response from the Minister, which is included in this report, as well as his response to the Minister’s comments.

Table of Contents

• 1. Synopsis
• 2. Results of the New Act 2002
• 3. Telecommunications Competition Act 2002
  • 3.1 Highlights
  • 3.2 three annual telecommunications reports
  • 3.3 Competitive safeguards report
  • 3.4 Change in prices report
  • 3.5 Price control report
  • 3.6 Accounting separation
  • 3.7 Other issues
• 4. L’histoire se repete
  • 4.1 1988
  • 4.2 1992
  • 4.3 1996
  • 4.4 2001
• 5. Analysis of The Act
  • 5.1 Politically risky model
  • 5.2 The end of delaying tactics?
  • 5.3 The effects of the Act on competition
  • 5.4 Telstra the big winner
  • 5.5 The focus is on T3 not on improving competition.
    • 5.5.1 What Australians want
• 6. Results of the ‘Competition Act’ 2002
  • 6.1 Access charges
  • 6.2 Accounting separation
  • 6.3 Expiry dates declarations
  • 6.4 First ACCC reports; damning for Telstra and the Government