024/05
30 March 2005
Release of ACCC's report on Telstra's price controls
The Minister for Communications, Information Technology and the Arts, Senator Helen Coonan, today released the Australian Competition and Consumer Commission's (ACCC) final report following a review of Telstra's price control arrangements.
"Price controls are one of the important consumer safeguards built by this Government and we are committed to retaining them in the interests of consumers," Senator Coonan said.
"Price controls are applied to Telstra to ensure that lower prices for telecommunications services flow through to consumers in markets where competition is not yet fully developed."
In early 2004, the Government directed the ACCC to provide advice on the nature of the price control arrangements that should apply to Telstra after the current price controls expire on 30 June 2005.
The ACCC conducted a public inquiry which commenced in June 2004 following the release of a discussion paper.
Public meetings were held in 12 locations around Australia during August and September 2004, and the ACCC released a draft report on price controls in November last year.
The recommendations made in the ACCC's final report are largely in line with those in the draft report and the ACCC has made a recommendation that price controls should remain.
However, there are some areas where the ACCC has given further consideration to the issues and has clarified its preferred approach in the final report.
"The Government will need to consider the report very carefully and consult closely with key industry and consumer stakeholders ," Senator Coonan said.
"I am aware there are a range of views on whether the ACCC's recommendations should be accepted in full, particularly given ongoing improvements in the competitiveness of the telecommunications markets. The Government will take those views into account in considering the report."
"The Government is committed to ensuring that the next set of price control arrangements will promote efficiency, encourage investment and achieve prices that are in the best interest of consumers."
A copy of the report is available online at www.accc.gov.au