Commonwealth of Australia
Telecommunications Act 1997
Australian Competition and Consumer Commission (Inquiry into Price Control Arrangements)
Direction (No. 1) 2009
I, STEPHEN MICHAEL CONROY, Minister for Broadband, Communications and the Digital Economy, make the following Direction under subsection 496(1) of the Telecommunications Act 1997.
Dated 23 December 2009
Minister for Broadband, Communications and the Digital Economy
1 Name of Direction
This Direction is the Australian Competition and Consumer Commission (Inquiry into Price Control Arrangements) Direction (No. 1) 2009.
This Direction commences on the day after it is registered on the Federal Register of Legislative Instruments.
This Direction ceases on the day after the ACCC provides its report to me in accordance with clause 6.
In this Direction:
ACCC means the Australian Competition and Consumer Commission.
Telstra has the same meaning as in the Telstra Corporation Act 1991.
5 Direction – Public Inquiry about Price Control Arrangements for Telstra Services and Facilities
(1) I direct the ACCC to hold a public inquiry under Division 3 of Part 25 of the Telecommunications Act 1997 about aspects of the price control arrangements that should apply under Part 9 of the Telecommunications (Consumer Protection and Service Standards) Act 1999 for:
(a) carriage services;
(b) content services; and
supplied by Telstra after the expiry of the Telstra Carrier Charges – Price Control Arrangements, Notification and Disallowance Determination No.1 of 2005 at the end of 30 June 2010.
(2) In conducting this inquiry, I direct the ACCC to have regard to the intention that price controls for legacy telecommunications retail services will remain in place for a further two years, during which time consideration will be given to the impact the transition to the new National Broadband Network environment will have on pricing policy.
(3) In conducting this inquiry, I direct the ACCC to consider:
(a) the appropriate composition of service baskets and the design and level of price caps; and
(b) what parts of the current arrangements might benefit from clarification or streamlining.
(4) In conducting this inquiry, I direct the ACCC to have regard to the following matters:
(a) the current state of competition in each of the markets the ACCC considers relevant;
(b) the impact of the current price control arrangements, and possible future price control arrangements, on:
(ii) the availability, choice, quality and prices of services to consumers and any other impacts on consumers; and
(iii) the telecommunications industry, including on economically efficient investment decisions.
(5) For the avoidance of doubt, nothing in this Direction prevents the ACCC from considering other relevant matters as a part of this inquiry.
6 Direction – Report on the Findings as a Result of the Inquiry
I direct the ACCC to provide me with a report setting out its findings as a result of the inquiry by 12 March 2010.