ACCC pleased with Telstra court ruling

Telstra had launched a Constitutional challenge in January last year against an ACCC ruling that the telco must provide competitors access to its network infrastructure at a fixed price point.

The Court denied Telstra’s claim that its property rights were being infringed and confirmed that Telstra’s ownership of the telephone system has always been contingent upon the right of its competitors to access the network for the ultimate benefit of customers. The ruling confirmed the constitutional validity of Part XIC of the Trade Practices Act 1974, and specifically its application to the Unconditioned Local Loop Service (ULLS) and Line Sharing Service (LSS).

Graeme Samuel, ACCC Chairman, claimed the ruling was an important step in fostering competition in Australia’s telecommunications sector.

"The telecommunications access regime is a key component of the regulatory framework supporting the development of a competitive telecommunications industry," he said.

He added: "Today's High Court ruling comprehensively rejects Telstra's arguments, referring to them as 'synthetic and unreal'. It provides welcome clarity around the basic regulatory rules which all carriers must abide by.

"Today's ruling also removes yet another layer of uncertainty created by the Telstra strategy of continual litigation. It provides welcome encouragement to industry participants using the access regime to continue investments which provide competitive services to end users," he said.

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