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Maddock's Brendon Coady


CommsDay Summit 2013

CommsDay Summit 2013

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  • 1. CommsDay SummitNBN Co SAUBrendan Coady | Partner4.50pm Tuesday, 9 April 2013
  • 2. Overview How important is the NBN Co SAU? What is NBN Co trying to achieve with the SAU? What is the basis of ACCC’s assessment? Impact of the SAU on access seekers and end users? Key points of the draft decision
  • 3. Why SAU (what happens without it?) NBN Co provides services by offering SFAAs – price, service description and Ts & Cs set by NBN Co Services offered under SFAA’s treated as declared ACCC has power to make access determinations, binding rules of conduct – also has the ability to declare services These powers would only be exercised as necessary ACCC decisions would not override access agreements
  • 4. What is NBN Co seeking to achieve Certainty and control over price setting for term of SAU Control over definition of services to be offered Certainty around Ts & Cs Relief from regulatory oversight Limitation of SAOs to incorporation into SFAA Fixed principles for term
  • 5. ACCC Decision - considerations Must consider whether it is reasonable and in the LTIE Benefits to access seekers/end users – Certainty around reference services – Long term revenue constraint – CPI -1.5% cap on individual services
  • 6. ACCC Decision - considerations Other considerations – Rapidly evolving industry – Downward trend in per unit pricing – Statutory monopoly status – Limitation of incentives given complex demands on NBN – Duration of undertaking – Need for the potential of regulatory intervention
  • 7. ACCC Decision – Key Points ACCC role in setting prices for new products Periodic review/rebalancing of existing prices Ability for ACCC to intervene in product development Confirms ability of ACCC to declare new services Requires compliance with SAOs, not just via SFAA
  • 8. ACCC Decision – Key Points Rejects certain initial prices (but accepts most) Rejects fixed principle terms Rejects non price provisions relating to: – Service levels – Dispute resolution – confidentiality & IPR
  • 9. Next steps Would a SAU amended as required still provide sufficient benefit to NBN Co As ACCC now has a role in price setting, how do the NBN Co caps operate? Contrast with SSU approach Questions
  • 10. CommsDay SummitBrendan Coady | PartnerDirect 61 2 9225 6258Brendan.Coady@maddocks.com.au