Australia - Telecoms - ULL - Background Briefing - 2006 -2008

Synopsis

The unbundling of the local loop or in more technical terms Unconditioned Local Loop Services (ULLS) involves the use of unconditioned cable (typically copper) between end-users and a telephone exchange, where the cable terminates. This service enables access seekers to supply advanced, high-speed data services, such as DSL, to customers as well as local and long-distance voice services in competition with Telstra.

As a result, fundamentally new services can be developed which stimulate innovation, competition and new growth. Telstra had been hampering progress since 1998 it was not until the ACCC received new powers under a new Act that some progress was made in 2003; new tariffs were announced in December 2004. Then in 2007 new wholesale products (ie lower prices), forced upon Telstra by the ACCC started in the market place.

This focus report contains information on the ULL market in Australia generally covering the years 2006-2008 and is provided at a discount to the current reports on the subject. The report also contains information that is highly useful for a background briefing on the subject matter. It was last updated in late-2008 and will not be updated further. For up-to-date information see separate reports including: Australia - Infrastructure - ULL.

Table of Contents

• 1. Synopsis
• 2. The ULL and Line Sharing Market
  • 2.1 Market statistics
• 3. ULL Developments in 2008
  • 3.1 Interconnection and local call resale
  • 3.2 Final determination over access to ULLS – PowerTel, XYZed and Request
  • 3.3 Final determination – ULLS dispute between Chime and Telstra
• 4. ULL Developments in 2007
  • 4.1 ACCC extends LSS declaration
  • 4.2 Unbundled local loop - versus - line sharing (analysis)
• 5. ULL Developments in 2006
  • 5.1 ULL Network Deployment Rules
  • 5.2 Interim determination – dispute between Chime and Telstra
  • 5.3 Telstra ignore PM directive
  • 5.4 Undertaking from Telstra – rejected in June 2006 and in May 2007
• 6. Market analysis
  • 6.1 ULL unsuccessful in delivering competition
  • 6.2 Issues dragging on now for six years
    • 6.2.1 ULL pricing still unresolved in 2006
    • 6.2.2 ACCC advices to continue regulations – March 2006
    • 6.2.3 ACCC rejects Telstra’s ULLS & LSS prices (August 2005)
    • 6.2.4 Telstra’s December 2004 proposals
    • 6.2.5 New ULL Industry Code – May 2005
• 7. Line sharing
  • 7.1 Finally a win for competition - 2006
• 8. Other reference reports
• 9. Related reports

• Table 1 – Unbundled subscribers – mid year 2006 - 2007
• Table 2 – Number of ULL and Line Sharing services 2006 - 2007 (end of year)
• Table 3 – Number of unbundled Telstra lines – September 2007
• Table 4 – ACCC price for fixed interconnection, local call resale and wholesale line rental
• Table 5 – Telstra /Chime ULLS dispute – final determination – March 2008
• Table 6 – Telstra /Chime ULLS dispute – interim determination prices
• Table 7 – Telstra’s proposed ULLS monthly charges
• Table 8 – Telstra’s proposed ULLS connection charges

• Exhibit 1 – Wholesale line rental