Superfast broadband network deemed functional separation undertaking - consultation paper August 2020

Overview

The Telecommunications Legislation Amendment (Competition and Consumer) Act 2020 (TLA Act) received Royal Assent on 25 May 2020. Among other provisions, it amends the Telecommunications Act 1997 (Cth) (Telecommunications Act) to enable superfast fixed line broadband networks serving residential customers to operate on a functionally separated basis (rather than a structurally separated basis).

In particular, the TLA Act inserts a process into Part 8 of the Telecommunications Act, under which network operators will be able to voluntarily submit functional separation undertakings to the Australian Competition and Consumer Commission (ACCC) for approval. This is intended to provide greater commercial flexibility for superfast network operators and promote infrastructure-based competition.

In addition, the ACCC is empowered to determine a deemed functional separation undertaking that an eligible corporation can choose to be bound by instead of submitting its own customised voluntary undertaking.

The new laws take effect on 25 August 2020, which is the day after the end of the period of three months beginning on the date the TLA Act received Royal Assent.

The consultation paper seeks stakeholder’s views on a draft deemed functional separation undertaking instrument including the proposed class of corporations to which it should apply.

Following consideration of submissions we expect to make a final draft deemed functional separation undertaking determination by the middle of October 2020.

How to make a submission

Interested parties can make a submission via this consultation either by responding to questions or uploading a submission. Please refer to the Consultation Paper document when completing the questions.

Alternatively, submissions can be lodged by email to ed.seymour@accc.gov.au or stephen.farago@accc.gov.au.

Please include your name, organisation and other contact details when making a submission.

Submissions are due by COB, Tuesday 15 September 2020.

All submissions will be treated as public documents and published on the ACCC website unless otherwise requested.

A commercial-in-confidence submission should be clearly marked and include reasons why it is confidential, and it should be submitted along with a public version.

More information about the ACCC’s treatment of confidential information can be found in the ACCC’s Information Policy.