Application by Vodafone Network Pty Ltd & Vodafone Australia Limited [2007] ACompT 1

Application by Vodafone Network Pty Ltd & Vodafone Australia Limited [2007] ACompT 1

The Tribunal was not satisfied that Vodafone's price of 16.15 cents per minute or the associated non-price terms (including the Pass Through Safeguard) were reasonable having regard to the matters in s 152AH and objectives in s 152AB of the Trade Practices Act. Vodafone's cost evidence did not establish that its costs were efficiently incurred, several empirical flaws in the cost models were not resolved with sufficient evidence, and the Pass Through Safeguard provisions were not shown to be reasonable, workable, or able to promote competition and the long-term interests of end-users. The Tribunal affirmed the ACCC decision rejecting Vodafone's access undertaking.

Jurisdiction
Australia
Judgment Date
11 January 2007
Procedural Posture
Review of Administrative Decision / Decision on Merits Review
Outcome
Affirmed the ACCC's decision; Vodafone's access undertaking rejected.
Legal Topics
['access Undertakings' 'regulated Pricing' 'cost Modelling' 'mobile Terminating Access Service' 'pass Through Safeguard' 'reasonableness of Terms' 'economic Efficiency']
['competition Law' 'telecommunications Law' 'administrative Law'] ['access Undertakings' 'regulated Pricing' 'cost Modelling' 'mobile Terminating Access Service' 'pass Through Safeguard' 'reasonableness of Terms' 'economic Efficiency']

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Procedural Posture

Review of Administrative Decision / Decision on Merits Review

Legal Issues

  1. 1 ["Are the price and non-price terms and conditions of Vodafone's access undertaking for its mobile terminating access service reasonable, having regard to the relevant statutory criteria, including the efficiency of costs and the reasonableness of the price term and the Pass Through Safeguard provisions?"]

Ratio Decidendi

The Tribunal was not satisfied that Vodafone's price of 16.15 cents per minute or the associated non-price terms (including the Pass Through Safeguard) were reasonable having regard to the matters in s 152AH and objectives in s 152AB of the Trade Practices Act. Vodafone's cost evidence did not establish that its costs were efficiently incurred, several empirical flaws in the cost models were not resolved with sufficient evidence, and the Pass Through Safeguard provisions were not shown to be reasonable, workable, or able to promote competition and the long-term interests of end-users. The Tribunal affirmed the ACCC decision rejecting Vodafone's access undertaking.

Court Disposition

Affirmed the ACCC's decision; Vodafone's access undertaking rejected.

Orders

  • ['The decision of the Australian Competition and Consumer Commission on 31 March 2006 rejecting the ordinary access undertaking given to it on 23 March 2005 by Vodafone Network Pty Ltd and Vodafone Australia Limited is affirmed.']