Telstra Corporation Ltd (No 3) [2007] ACompT 3

AUSTRALIAN COMPETITION TRIBUNAL

Telstra Corporation Ltd (No 3) [2007] ACompT 3 TRADE PRACTICES – application pursuant to s 152CE(1) of the Trade Practices Act 1974 (Cth) – application for review of decision of Australian Competition and Consumer Commission to reject access undertakings – unconditioned local loop service ("ULLS") – whether monthly charge is reasonable – consistency with standard access obligations – averaging of network costs – retail price parity obligation – universal service obligation – universal service fund – whether averaging promotes the long‑term interests of end‑users – whether averaging is in the legitimate business interests of access provider – whether averaging is in the interests of persons who have rights to use the ULLS – direct costs of providing access to the ULLS – reasonableness of network modernisation provisions – efficient costs – reasonableness of PIE II model – international benchmarking – allocation of costs – weighted average cost of capital ("WACC") Trade Practices Act 1974 (Cth): ss 152AB, 152AH, 152AL, 152AR, 152AY, 152BS 152BU(2), 152BV(2), 152CE(1), 152CF(3) Pts IV, V, XIB, XIC Telecommunications Act 1997 (Cth) Telecommunications Competition Bill 2002 Legislative Instruments Act 2003 (Cth): ss 55(2), 55(3) Telecommunications (Consumer Protection and Service Standards) Act 1999 (Cth): ss 11, 11A, 12D, 154, 155, 157 Telecommunications (Universal Service Levy) Act 1997 (Cth)

Telstra Corporation Limited [2006] ACompT 4, applied Application by Optus Mobile Pty Limited & Optus Networks Pty Limited [2006] ACompT 8, applied Application by Vodafone Network Pty Limited & Vodafone Australia Limited [2007] ACompT 1, applied Sydney International Airport (2000) ATPR 41‑754, distinguished Seven Network Limited (No 4) [2004] ACompT 11, distinguished Re Queensland Co‑Operative Milling Association and Defiance Holdings (1976) 8 ALR 481, applied Sydney Services Pty Limited [2005] ACompT 7, cited R v Hunt Ex parte Sean Investments Pty Ltd (1979) 180 CLR 322, applied FILE No 8 of 2006 RE: FINAL DECISION BY THE AUSTRALIAN COMPETITION AND CONSUMER COMMISSION DATED AUGUST 2006 IN RESPECT OF ORDINARY ACCESS UNDERTAKINGS SUBMITTED BY TELSTRA CORPORATION LIMITED FOR THE UNCONDITIONED LOCAL LOOP SERVICE TELSTRA CORPORATION LTD (ACN 051 775 556) Applicant