13 May 2003

ACCC Funding For Telecommunications Competition Regulation

The Australian Competition and Consumer Commission (ACCC) will receive funding of $22.9 million over 4 years for its telecommunications competition regulatory functions.

This will allow the ACCC to administer the telecommunications-specific provisions in the Trade Practices Act 1974 including the regulation of anti-competitive conduct and the telecommunications access regime.

The funding will also support new functions including the implementation of an accounting separation framework for Telstra as required under the Telecommunications Competition Act 2002.

The Government's decision to continue the ACCC's role, announced last year, followed the Productivity Commission's inquiry that supported the continuation of telecommunications specific provisions contained in the Trade Practices Act.

The Telecommunications Competition Act 2002 implemented the Government's response to the Productivity Commission's inquiry into telecommunications competition regulation, which was announced last year. The response included the Government's decision to implement an accounting separation framework for Telstra, which will raise the level of transparency of Telstra's operations.

The cost of telecommunications competition regulation is recovered from the telecommunications industry under industry levy arrangements pursuant to the Telecommunications (Carrier Licence Charge) Act 1997.