The Australian Competition and Consumer Commission has made a decision to declare the local bitstream access service. This declaration is intended to cover the ‘last mile’ of fibre to residences and small businesses on networks that are not owned by NBN Co and does not apply to mobile, wireless or satellite networks.

 

“This is the first step in setting the access terms for this service so that businesses can provide innovative services to consumers in these areas, similar to those provided over the NBN,” ACCC Chairman Rod Sims said.

 

This service will be used by Retail Service Providers (RSPs) to supply broadband services to end-users, primarily in new housing estates served by fibre networks other than the National Broadband Network (NBN).

 

The local bitstream access service specifically applies to non-NBN ‘superfast’ telecommunications networks. Superfast carriage services are defined to have a download transmission rate of more than 25 megabits per second. However, the declaration does not apply to services over the NBN or to wireless, mobile or satellite networks even at those transmission speeds.

 

The newly declared service is primarily expected to apply to a relatively small number of fibre networks, such as those in new housing developments. It only applies to those networks built or upgraded after 1 January 2011.

 

The declaration requires that wholesale service providers, upon request, supply the service to RSPs under the standard access obligations in the Competition and Consumer Act 2010. Unlike other declared telecommunications services, the local bitstream access service declaration does not expire, cannot be varied and cannot be revoked.

 

The declaration is expected to come into force on 13 April 2012 or a date proclaimed before then.

 

New provisions of the Telecommunications Act 1997 required the ACCC to declare this service. The provisions are designed to ensure that such networks providing superfast telecommunications provide access to the network at that same low level of connectivity as the NBN and that such networks are operated on a wholesale only basis.

 

The Minister for Broadband, Communications, and the Digital Economy may exempt a network from these obligations. Telstra has been granted such exemptions by the Minister for its South Brisbane fibre network and for certain ‘Velocity’ estates.

 

The ACCC has also released a discussion paper commencing a public inquiry on access terms for the service.

The discussion paper seeks industry submissions on:

  • the appropriate pricing methodology or price for the service
  • the duration of the final access determination, and
  • what non-price terms and conditions should be included in the final access determination.

An access determination provides certain default terms of access to a regulated service that an RSP can rely on if the parties are unable to agree on commercial terms.
Parties with an interest in the final access determination process are invited to make submissions by 23 March 2012.

 

More information is at http://www.accc.gov.au