Independent Review – Department of Communications
On 18 March 2015, the Minister for Communications announced the repeal of price controls which applied to the retail prices Telstra charges on fixed telephone services. The retail price controls that apply to Telstra through the Telstra Carrier Charges – Price Control Arrangements, Notification and Disallowance Determination No. 1 of 2005 include price caps and other constraints and restrictions imposed on the price of selected services offered by Telstra at the retail level. The Australian Government decision was informed by an independent review from the Centre for Independent Economics which concluded that these controls no longer had an impact on the prices Telstra actually charges and were redundant in the competitive retail market for telecommunication services. The review and related consultations found that Telstra prices for fixed line telephone services have been well below the retail price control levels for many years and that competitive pressure has prevented regionally differentiated pricing. The independent review was certified by the Department of Communications as meeting the requirements of a Regulation Impact Statement. The Office of Best Practice Regulation (OBPR) does not assess independent reviews. The Department of Communications was consistent with best practice in certifying the independent review and seeking agreement to regulatory costs. The independent review estimates the average annual regulatory saving at $0.246 million. The OBPR has agreed to the costing.
- The independent review report is available at the Department of Communications website
