Australia - Regulatory - Accounting Separation

Synopsis

This report has been archived. Specific provisions in the Act enable the Minister to issue directions to the Australian Competition and Consumer Commission (ACCC) to deliver an enhanced accounting separation framework for Telstra. Key features of the new accounting separation rules are an enhanced set of regulatory accounts that will provide more transparency about Telstra’s wholesale and retail costs; and publication of price and non-price information relating to the ‘core’ services that use the ‘bottle-neck’ components of Telstra’s fixed-line network. The ACCC has expressed its concerns about Accounting Separation as a workable model to stimulate competition, which was again confirmed in 2008. In general they conclude that margins in traditional services are ok, but not in relation to new services. In 2005 the discussion started to move toward operational separation. However, implementation could take many years.

Table of Contents

  • 1. Synopsis
  • 2. Accounting Separation not working
  • 3. Accounting Separation Rules
  • 4. Accounting separation doesn’t work – analysis
  • 5. ACCC Reports
    • 5.1 Introduction and reports so far
    • 5.2 The latest Report (discontinued)
  • 6. record-keeping rules
  • 7. Telstra Accounting Separation reports
    • 7.1 Current costs
    • 7.2 Imputation testing
    • 7.3 KPIs for non-price terms and conditions
    • 7.4 Conclusions
  • 8. Background – public disclosure of information
  • 9. Accounting separation under the new Act
  • 10. The ACCC report – January 2003
  • 11. Draft direction – March 2003
  • 12. Final report – June 2003
    • 12.1 Introduction
    • 12.2 Record-keeping rules
  • 13. Comments from ATUG on virtual separation
  • 14. Longer term accounting separation rules
  • 15. Structural separation
  • 16. Related reports
  • Exhibit 1 – Accounting Separation Directions
  • Exhibit 2 – Key performance indicators

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Number of pages 9

Status Archived

Last updated 23 Jun 2008
Update History

Analyst: Paul Budde

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