Application by Telstra Corporation Limited ABN 33 051 775 556 [2010] ACompT 1

AUSTRALIAN COMPETITION TRIBUNAL

Application by Telstra Corporation Limited ABN 33 051 775 556 [2010] ACompT 1 Citation: Application by Telstra Corporation Limited ABN 33 051 775 556 [2010] ACompT 1

Parties: APPLICATION FOR REVIEW OF THE FINAL DECISION OF THE AUSTRALIAN COMPETITION AND CONSUMER COMMISSION UNDER SECTION 152BU OF THE TRADE PRACTICES ACT 1974 IN RELATION TO THE ORDINARY ACCESS UNDERTAKING SUBMITTED BY TELSTRA CORPORATION LIMITED FOR THE UNCONDITIONED LOCAL LOOP SERVICE FOR BAND 2 AREAS and TELSTRA CORPORATION LIMITED ABN 33 051 775 556

File number: 1 of 2009

Tribunal: JUSTICE JR MANSFIELD (DEPUTY PRESIDENT) R STEINWALL RF SHOGREN

Date of determination: 10 May 2010

Catchwords: TRADE PRACTICES – telecommunications – access regime – access undertaking – rejection of access undertaking by ACCC – review of decision of ACCC – whether TSLRIC+ approach reasonable – whether modelling by TEA Model version 1.3, including assumptions upon which that modelling was based, reasonable – consideration of particular assumptions and inputs into modelling – degree of network optimisation/ "scorched node" approach – depreciation – value of weighted average cost of capital (WACC) – operating and maintenance costs – long term interests of end users – consideration of non-price terms of undertaking – desirability of certainty in terms of undertaking – decision of ACCC affirmed – Trade Practices Act 1974 (Cth), Part XIC, s 152AB, s 152AH and s 152CF