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Public inquiry to make final access determinations for the declared fixed line services

This submission is made on behalf of Adam Internet Pty Ltd, Aussie Broadband Pty Ltd, iiNet Limited and Internode Pty Ltd (collectively, our Clients) in response to the discussion paper of April 2011 entitled Public inquiry to make final access determinations for the declared fixed line services (Discussion Paper). Collectively, our Clients themselves or through their subsidiaries - i.e. Chime Communications (iiNet), Agile (Internode) and Wideband Networks (Aussie Broadband) - acquire a substantial share of the declared services provided over Telstra’s fixed network. Over the last five years, each of them has been forced to notify the ACCC of numerous access disputes about the declared services in order to. | herbertgeer Public inquiry to make final access determinations for the declared fixed line services Submission by Herbert Geer Lawyers on behalf of Adam Internet Pty Ltd Aussie Broadband Pty Ltd iiNet Limited and Internode Pty Ltd 3 June 2011 Bris_Docs 1347878 6743687 v1 1 1. INTRODUCTION This submission is made on behalf of Adam Internet Pty Ltd Aussie Broadband Pty Ltd iiNet Limited and Internode Pty Ltd collectively our Clients in response to the discussion paper of April 2011 entitled Public inquiry to make final access determinations for the declared fixed line services Discussion Paper . Collectively our Clients themselves or through their subsidiaries - i.e. Chime Communications iiNet Agile Internode and Wideband Networks Aussie Broadband - acquire a substantial share of the declared services provided over Telstra s fixed network. Over the last five years each of them has been forced to notify the ACCC of numerous access disputes about the declared services in order to obtain reasonable terms of access from Telstra. The form of the Final Access Determinations FADs are therefore extremely important to each of them. Amendments that were made by the Telecommunications Legislation Amendment Competition and Consumer Safeguards Act 2010 have resulted in a move from a negotiate arbitrate regulatory access model to a model where the ACCC is given power to set terms and conditions of access upfront. Under this new model the setting of terms and conditions upfront is done by means of Access Determinations. The changes to the access regime model have coincided with a shift in the ACCC s thinking regarding the underlying methodology that it uses to set access prices. The ACCC has replaced the traditional TSLRIC costing methodology with a Building Block Model BBM that involves the use of an initial Regulated Asset Base RAB which is rolled forward during the regulatory period. On 2 March 2011 the ACCC made its first Interim Access Determinations IADs for fixed line .