Telstra proposes equal power for ACCC and ITA

01.11.2011
Telstra has proposed changes to its structural separation undertaking (SSU), which the Australian Competition and Consumer Commission (ACCC) and the Independent Telecommunications Adjudicator (ITA) would share equal resolution powers to alleviate concerns that the latter would favour the telco.

The telco detailed the proposed changes in a , which noted from both industry and the competition watchdog around the original SSU's resolution measures.

"The feedback received from industry stakeholders indicated continued concerns about the future independence and operation of the ITS," the discussion paper reads. "The ACCC also questioned whether there would be an effective dispute processes in place under the SSU in the event that wider industry participation in the scheme did not occur."

Following this, the telco has suggested granting "parallel" power to both the ACCC and the ITA under the SSU, which wholesale customers would choose which party to refer disputes to.

"In effect, if a wholesale customer has concerns about the independence of the ITA, this would make the ACCC available as an alternative," the paper reads.

According to the paper, having the ACCC as an alternative would provide incentive for the telco to ensure the ITA is credible and independent.