The ACCC has released its draft decision on the revised Special Access Undertaking (SAU) lodged by NBN Co. While the ACCC has recognised that the revised SAU has merit, it has indicated that its preliminary view is that the SAU does not meet the criteria specified in Part XIC of the Competition and Consumer Act (CCA) for acceptance. The ACCC specifically notes a number of concerns including:
- ambiguity regarding whether NBN Co must comply with regulatory determinations and therefore the ACCC's ability to respond effectively to changing circumstances;
- inability to satisfy itself that the SAU will encourage efficient use of the network for the full SAU term;
- that the proposed product withdrawal provisions and the discretion provided to NBN Co to set new prices limits the effectiveness of the proposed CPI minus 1.5% price control and NBN Co's incentives to operate efficiently;
- whether the ACCC could use its powers under Part XIC of the CCA to declare services and terms and conditions where NBN does not respond to evolving demand; and
- the proposed non-price terms do not give sufficient weight to the interests of access seekers.
For more information, please see the ACCC press release.
The NBN Co media release is accessible here.
The Consultation Paper is accessible here.
The ACCC's draft decision is available here.
The closing date for submissions is 2 May 2013