Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Maddock's Brendon Coady

439 views

Published on

CommsDay Summit 2013

  • Be the first to comment

Maddock's Brendon Coady

  1. 1. CommsDay SummitNBN Co SAUBrendan Coady | Partner4.50pm Tuesday, 9 April 2013
  2. 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. 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. 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. 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. 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. 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. 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. 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. 10. CommsDay SummitBrendan Coady | PartnerDirect 61 2 9225 6258Brendan.Coady@maddocks.com.au

×