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Australia - Regulatory - Accounting Separation

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Last updated: 23 Jun 2008 Update History

Report Status: Archived

Report Pages: 9

Analyst: Paul Budde

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This report has been archived.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.

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