Regulator delays NBN pricing tick

THE competition regulator has suspended its decision on the NBN Co's long-term pricing plan until after the federal election.

THE competition regulator has suspended its decision on whether or not to accept the NBN Co's long-term pricing plan until after the federal election.

Early last month the Australian Competition & Consumer Commission warned the NBN Co it would reject its plan unless changes were formally made to allow the regulator to intervene in commercial disputes and set prices for new NBN services.

The plan, known as the special access undertaking, will form the foundation of Australia's the telecommunications market for the next 30 years by defining the wholesale pricing and access terms for companies such as Optus and iiNet when they use the NBN.

Of the key changes, the ACCC wanted to frequently review usage charges on the NBN as well as regulate the introduction and withdrawal of new products.

The regulator said these measures would protect consumers by preventing NBN Co from evading price caps by removing products and reintroducing new ones at different prices.

Those changes were ultimately accepted by the NBN Co at the end of last month. At that time the ACCC said it would like to hand down its SAU decision before the September 7 election but the regulator has changed its mind, saying it is impractical to issue the notice at this time. "The ACCC is nonetheless aiming to settle the arrangements in the SAU as soon as practicable, given that interim contractual arrangements between NBN Co and access seekers will expire before the end of the year," it said.

It expects to finalise the notice shortly after the poll.

ACCC chairman Rod Sims said the move would have no practical impact on the NBN.