New pricing process introduced by the ACCC branded stupid and ridiculous

A number of operators looking for to make interim plans for broadband access prior to the rollout of the NBN network, which is years away, have said that the draft pricing for fixed-line wholesale services from consumer watchdog, the ACCC would destroy any chance of investment in broadband over copper-wires.

The process used by the ACCC in reaching its draft pricing was said to be both ‘stupid’ and ‘ridiculous’ by Ravi Bhatia, the CEO of Primus Telecom, who could not believe pricing of the Unconditional Local Loop (ULL) by the Australian Competition and Consumer Commission.

The indicative pricing and principle pricing of six fixed line wholesale pricing services for the next three years, which would increase every year,  were announced by the ACCC earlier in the week. The principles of the draft pricing would be on a cost basis said the commission.

Next year would see the current price of metropolitan ULL access rates increase from $14.30 to $16.90 and by 2011-12 this price would increase to over $23 under the new draft pricing process.

Bhatia said “The decision was an absolute shocker … a shocker,” Bhatia said. “The prices are unreasonable and the process is ridiculous. The process has been going on for three years. And no-one seems to be doing anything to fix this stupid process.”

He went on to say that any decisions to invest were made incredibly difficult due to the whole length of the process, with lengthy period of silence from the ACCC following every consultation causing the process to take far longer than it should.

A significant number of communities would now be forced to suffer sub-standard broadband services unit the NBN is deployed because the new draft pricing would put off any operators thinking about installing DSLAMs into telephone exchanges in order to expand or improve their ADSL services.

Source- IT Wire