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ARTICLE · 03 MAY 2016

ACCC FAD sees dramatic price cuts for declared services

Corrs Chambers Westgarth
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The 2016 FAD sets DTCS pricing much lower than the regulated prices set in the 2012 FAD, particularly on regional routes.

AustraliaMedia, Telecoms, IT, Entertainment
Thomas Jones (Formerly With Corrs Chambers Westgarth)
Thomas Jones (Formerly With Corrs Chambers Westgarth)
Carly Chenoweth
Carly Chenoweth
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On 21 April 2016, the Australian Competition and Consumer Commission (ACCC) released its final access determination (FAD) setting out price and non-price terms and conditions for the Domestic Transmission Capacity Service (DTCS) (the 2016 FAD). These terms and conditions create a benchmark for access providers and access seekers who are unable to negotiate access terms or if there is no commercial access agreement in place. The 2016 FAD sets DTCS pricing significantly lower than the regulated prices set in the ACCC's 2012 final access determination (2012 FAD), particularly on regional routes where some reductions are close to 80%. Regulation of the DTCS is intended to deliver benefits to consumers by ensuring that bottleneck inputs are supplied at competitive prices.

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