Telstra Corporation Limited (ACN 051 775 556) [2006] ACompT 4

Telstra Corporation Limited (ACN 051 775 556) [2006] ACompT 4

The $9.00 monthly charge in Telstra's access undertaking was not reasonable, as the Tribunal was not satisfied that Telstra's method of determining LSS-specific costs—particularly its approach to levelisation and cost allocation—was reasonable having regard to the statutory matters specified in ss 152AH and 152AB of the Trade Practices Act 1974 (Cth). Allocation solely over LSS lines and levelisation over four years were found inappropriate for promoting competition and the long-term interests of end-users.

Jurisdiction
Australia
Judgment Date
02 June 2006
Procedural Posture
Application for Review of Administrative Decision / Final Determination
Outcome
Application dismissed; Commission's decision affirmed
Legal Topics
['access Regime' 'reasonableness of Charges' 'cost Allocation' 'levelisation of Costs' 'long Term Interests of End Users' 'promotion of Competition' 'efficient Investment in Infrastructure']
['competition Law' 'telecommunications Law' 'administrative Law'] ['access Regime' 'reasonableness of Charges' 'cost Allocation' 'levelisation of Costs' 'long Term Interests of End Users' 'promotion of Competition' 'efficient Investment in Infrastructure']

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Procedural Posture

Application for Review of Administrative Decision / Final Determination

Legal Issues

  1. 1 ['Whether the $9.00 LSS monthly charge proposed by Telstra is reasonable under the Trade Practices Act 1974 (Cth)' "Whether Telstra's method of levelisation and cost allocation is reasonable" 'Whether the monthly charge promotes the long-term interests of end-users' 'Whether procedural fairness requires limiting Tribunal submissions to those made before the Commission']

Ratio Decidendi

The $9.00 monthly charge in Telstra's access undertaking was not reasonable, as the Tribunal was not satisfied that Telstra's method of determining LSS-specific costs—particularly its approach to levelisation and cost allocation—was reasonable having regard to the statutory matters specified in ss 152AH and 152AB of the Trade Practices Act 1974 (Cth). Allocation solely over LSS lines and levelisation over four years were found inappropriate for promoting competition and the long-term interests of end-users.

Court Disposition

Application dismissed; Commission's decision affirmed

Orders

  • ['The decision of the Australian Competition and Consumer Commission dated 21 December 2005 rejecting the access undertaking given by Telstra Corporation Limited on 13 December 2004 is affirmed']