The Treasurer, Peter Costello, and the Minister for Communications, Information Technology and the Arts, Senator the Hon Richard Alston, today jointly announced arrangements for a Productivity Commission review of competition regulation in Australias telecommunications sector.
Section 151CN of the Trade Practices Act 1974 requires a review of the operation of Part XIB of the Trade Practices Act - that part which deals with anti-competitive conduct in the telecommunications industry. In addition, the review is consistent with the Commonwealths obligations under national competition policy.
The Government is committed to facilitating the ongoing development of an effective and competitive telecommunications framework. Accordingly, the Government has widened the scope of the review to cover other aspects of the telecommunications specific competition regime, including Part XIC of the Trade Practices Act - which deals with interconnection and access - and relevant provisions of the Telecommunications Act 1997, such as pre-selection of carriage service providers and number portability.
The efficient provision of telecommunications services which meet the needs of customers has a direct bearing on the overall health of the economy.
Liberalisation of the telecommunications sector has already delivered significant benefits to Australia in the form of more industry players, lower prices, new and innovative services and products and improved service quality.
The Government has always been committed to monitoring the operation of the regulatory regime to ensure it is working effectively. We incorporated into the Trade Practices Act this review requirement in recognition that now is the appropriate time to assess the achievements since 1 July 1997. The Productivity Commission review will assist in identifying whether the regulatory regime is working as effectively as possible and that the benefits of competition regulation are being delivered to customers.
The terms of reference are attached.
The Productivity Commission is to report to the Government within twelve months of receipt of the reference. The Productivity Commission will consult widely with key interest groups and affected parties.