Australia - Regulatory Environment - Price caps and parity


This report has been archived. It introduces the national regulated price control arrangements through 1998 to April 2002. In July 2002, the Federal Government proposed a new regime to win support for selling Telstra. Final recommendations were made in 2005 but the government was not impressed. It decided to take the issue on board it the overall regulatory review prior to the full privatisation of Telstra (T3). In April 2008 Telstra had a regulatory win in the regulatory when the ACCC issued a draft decision that would grant Telstra exemptions from obligations to supply wholesale line rental and local call resale, in parts of metropolitan Australia.

Table of Contents

  • 1. Synopsis
  • 2. ACCC to oversee access to Telstra exchange facilities
  • 3. Telstra’s regulatory win on two declared services – 2008
  • 4. Telstra achieves price cap goals
  • 5. Retail Price parity for line rentals
  • 6. Other Tariff and pricing issues
    • 6.1 Recommendations prior to T3
    • 6.2 Overview
    • 6.3 Additional regulations
    • 6.4 Review of 1998
    • 6.5 The changes of April 2002
    • 6.6 Telstra’s massive consumer rip-off
    • 6.7 Review of 2004/2005
      • 6.7.1 Rebalancing and the Price Control Inquiry
      • 6.7.2 ACCC Report – March 2005
      • 6.7.3 Government defers decision
  • 7. Price Cap Regulations – analysis by ACORE
    • 7.1 Australian Centre for Regulatory Economics (ACORE)
    • 7.2 Questioning of the value of State-based regulatory regimes
    • 7.3 ACCC applies a harsher regulatory stance than State-based regulators
    • 7.4 Evaluating impact of price cap regulation is difficult
    • 7.5 Larger risk of insolvency for regulated firms
    • 7.6 A lighter-handed regulatory regime is preferred
    • 7.7 Alternative policy instruments
  • 8. Related reports
  • Table 1 – Telstra fixed voice and access revenues (million) – 2000 - 2005
  • Exhibit 1 – Price caps on Telstra – January 1996 - July 2002

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Number of pages 9

Status Archived

Last updated 14 Jul 2008
Update History

Analyst: Paul Budde

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