The ACCC has released a position statement on how it intends to account for the effect of arrangements between Telstra and NBN Co in the ACCC's final access determinations for Telstra’s regulated fixed line services.
The ACCC identified the arrangements regarding the migration of customers to the NBN and the use of Telstra’s assets by NBN Co as key issues in setting prices for declared services.
The ACCC will use the regulatory value of Telstra’s assets, not the higher payments agreed between Telstra and NBN Co in their agreements, to adjust the cost base for NBN effects when determining regulated charges. The ACCC has noted that such a calculation mechanism is in line common regulatory practice and reflects the same regulatory principles that arise when one business buys regulated assets from another.
The media release can be found here.