Australia - Telecoms - Unbundled Local Loop

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, including DSL, to customers as well as local and long-distance voice services in competition with incumbents, ie in Australia – Telstra.

As a result, fundamentally new services are able to be developed which can stimulate innovation, competition and new growth. The incumbent, Telstra had been hampering progress since the late 1990s and 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 late 2004. Then in 2007 new wholesale products (ie lower prices), forced upon Telstra by the ACCC started in the market place.

In this report we provide analysis on the ULL market and provide an overview of the market in 2011 as the regulators have reviewing and adjusting the pricing models of the fixed-line services, some that were determined back in 1997. The new pricing models will see changes take effect in 2011 through to 2016.

Table of Contents

• 1. Synopsis
• 2. Definitions
  • 2.1 Unconditioned Local Loop Services (ULLS)
  • 2.2 Local Carriage Service (LCS)
  • 2.3 Line sharing
  • 2.4 Multi services
• 3. Developments in 2011
  • 3.1 Background information on the IAD and FADs
  • 3.2 Interim access determinations
  • 3.3 Final access determinations
  • 3.4 Domestic transmission capacity service (DTCS) IAD
• 4. Developments in 2010
  • 4.1 Fixed line access pricing to alter from 2011
  • 4.2 Telstra’s ULLS undertaking rejected
  • 4.3 Domestic transmission capacity service review
  • 4.4 Domestic transmission capacity pricing review
  • 4.5 Telstra received $19 million fine denying infrastructure access
• 5. Developments in 2009
  • 5.1 Domestic transmission capacity service (DTCS) – 2009 - 2014
    • 5.1.1 Background
    • 5.1.2 Variation and extension of DTCS – 2009
  • 5.2 ULL rates
• 6. Market analysis
  • 6.1 Perspective on ULL pricing – September 2010
  • 6.2 ULL unsuccessful in delivering competition
  • 6.3 Analysis of Unbundled local loop versus line sharing
  • 6.4 The economic benefits of ULL
• 7. Line sharing
  • 7.1 The limits of line sharing
• 8. Other ULL reference reports
• 9. Related reports

• Table 1 – ACCC draft pricing for fixed lines and percentage changes – 2010 - 2016
• Table 2 – ACCC price for fixed interconnection, local call resale and wholesale line rental

• Exhibit 1 – Examples of multi services
• Exhibit 2 – PDH, SDH, Ethernet – signals and rates
• Exhibit 3 – Capital – regional exempt DTSC routes – 2009 - 2014
• Exhibit 4 – Capital – regional DTSC routes – 2009 - 2014
• Exhibit 5 – Wholesale line rental