Feeds

Short-lived backhaul declaration better, says Voda

‘Don’t lock in long-term price’, carrier tells ACCC

Boost IT visibility and business value

Vodafone is warning the Australian Competition and Consumer Commission (ACCC) against setting backhaul service prices too far into the future, saying that an early review would be better for the industry than a long-term lock-in.

The carrier’s latest submission to the competition regulator’s draft FAD (That's a 'final access determination', not a short-lived craze) says that a review in 12 months is necessary to test the regulator’s proposed domestic benchmark methodology.

Restating its concern that “the proposed domestic benchmarking approach” won’t deliver efficient backhaul pricing over the long term, Vodafone says if prices are set for too long a period, Telstra will be able to extract monopoly rents from domestic backhaul, particularly in regional areas.

Vodafone says it is responding to Telstra’s claim that a short-duration declaration would prevent it signing long-term agreements.

The carrier’s chief criticism of the ACCC’s benchmarking approach is that it ignores discounting, particularly where discounts are offered to capture all of a customer’s business (not just backhaul – ‘whole-of-business’ discounts). “To ignore the impact of discounts is to remove critical information from the DCTS [domestic transmission capacity service]”, Vodafone states in its submission.

Since it believes the ACCC’s data model doesn’t capture real prices, Vodafone claims, “the ACCC cannot be confident the pricing model is delivering economically efficient prices”. ®

Using blade systems to cut costs and sharpen efficiencies

More from The Register

next story
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
Telstra to KILL 2G network by end of 2016
GSM now stands for Grave-Seeking-Mobile network
Seeking LTE expert to insert small cells into BT customers' places
Is this the first step to a FON-a-like 4G network?
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.