An article by Grahame Lynch, published in COMMUNICATIONS DAY n.3621, 16-09-2009, reveals that "Telstra and Optus have wheeled out the big guns in the fight over how the Australian Competition and Consumer Commission will cost and model declared fixed line services over the next three years. Both Telstra and Optus are critical of the ACCC’s proposals—Optus says the ACCC is pricing ULL too high, while Telstra says the ACCC is pricing ULL and other fixed network services too low.In submissions to the ACCC draft consultation process, Telstra has filed three CD ROMs of material with the regulator supporting its case, while Optus has also sourced reams of external supporting material."
CEG analysis features prominently in the article, in particular the author notes that "Optus in turn uses a report from CEG to support the contention that the current pricing methodologies used by the ACCC create too much uncertainty and that the modelling of a replacement copper network in calculating Telstra prices is clearly inappropriate given that the government plans a national fibre network and that this would be cheaper.The CEG report, interestingly, estimates the cost of a national FTTP network at A$32.9 billion, $3 billion cheaper than a copper network, and apparently, creating $10-15 billion more value than a copper network.This caused a minor flurry amongst NBN critics yesterday who seized on it as more evidence than the proposed NBN would fail a cost-benefit analysis. But the CEG report says that its survey analysis shows there would be a willingness on behalf of consumers to pay nearly an extra $1 billion per annum for high speed services only possible on fibre."
The ACCC is now assessing the parties' submissions ahead of a final decision.
