Australia - Interconnect


This report was archived in January 2008 and has not been updated. After the Australian Competition and Consumer Commission (ACCC) ruled on interconnect in June 1999 fundamental changes were finally in the air. Interconnect and access are the most crucial issues for the market and form the main topic discussed in the industry forums. They constitute the basis for the financial arrangements service providers need to resell carrier services. The ruling was reconfirmed in July 2000 and Telstra was required to offer more transparency to its wholesale customers for the various terms and conditions. October 2001 saw Telstra’s first real interconnection deals. By 2004 the issue was moved away from regulatory driven to commercially driven. The battles had in the meantime moved to broadband.

Table of Contents

  • 1. Synopsis
  • 2. Introduction
  • 3. History of interconnect
    • 3.1 The Austel initiative of 1995
    • 3.2 Telstra pressured into better rates – 1994-1997
    • 3.3 ACCC intervened with better prices – 1997
    • 3.4 The NERA study – 1997/1998
    • 3.5 Total services long-run incremental costs
  • 4. ACCC determinations
    • 4.1 The 1999 proposal
    • 4.2 The ruling of 2000
    • 4.3 Telstra’s appeal to the Tribunal
    • 4.4 New prices set in 2003
  • 5. The complex world of termination fees
  • 6. Arbitration cases 1999-2002
  • 7. Mobile communication
  • 8. Related reports
  • Exhibit 1 – The interconnect rates of 1991
  • Exhibit 2 – Cable & Wireless Optus (now Optus) response to NERA report
  • Exhibit 3 – NRG’s Response to NERA Report
  • Exhibit 4 – Definition of TSLRIC
  • Exhibit 5 – LRIC costing issues

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Number of pages 8

Status Archived

Last updated 28 May 2005
Update History

Analyst: Lawrence Baker

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