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.