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ACCC home > For regulated industries > Communications > Access and pricing > Access pricing papers > Mobile terminating access service (MTAS) 2007 pricing principles

Mobile terminating access service (MTAS) 2007 pricing principles

The domestic mobile terminating access service is a wholesale input used by providers of fixed-to-mobile and mobile-to-mobile calls to allow their customers to call mobile subscribers. It allows consumers (either fixed line or mobile) to call mobile users. If a call made by the carrier's customer terminates on another mobile network, the carrier pays the other network owner for the mobile termination access service.

The current exercise of developing a 'bottom-up' cost model has been part of an extensive consultation process which began with the Mobile Services Review in 2003.

That consultation process informed the MTAS pricing principles determination for the period 1 July 2004 to 30 June 2007, which expires on 30 June 2007.

To support future MTAS pricing principles determinations, the Australian Competition and Consumer Commission issued a request for tender in March 2006 seeking the services of a consultant to construct a bottom-up cost model with specific economic and engineering parameters for mobile termination access services in Australia. WIK Consult was engaged in June 2006 and has worked with the ACCC to develop a bottom-up cost model that estimates the efficient cost of supply of the MTAS in Australia using a total services long run incremental cost conceptual framework.

The ACCC sought submissions from interested parties on issues set out in the discussion paper about the WIK mobile network and cost model and its Mobile termination cost model for Australia report. The closing date for submissions was 5.00 pm Friday, 16 March 2007. The ACCC has considered parties’ submissions on the WIK mobile network and cost model and the discussion paper on the model, and has now released the Draft MTAS pricing principles determination for the period from 1 July 2007 to 31 December 2008. Public versions of these submissions are available for interested parties:






Submission on the WIK cost model discussion paper

Vodafone has provided a submission to the ACCC that contains commercial-in-confidence material. At this stage, Optus has not provided a c-in-c submission to the ACCC.

Parties wishing to contact Vodafone about the confidential submission should write to:

Luke Van Hooft, Senior Economic Policy Analyst
Vodafone Australia Pty Ltd, Locked Bag 1581, Chatswood  NSW  2067
Email: luke.vanhooft@vodafone.com



ATUG submission (with attachments)





Letters to MNOs about ‘busy hour’ information

On 3 April 2007 the ACCC wrote to mobile network operators in Australia seeking their assistance in providing busy hour parameters by 13 April 2007. The ACCC received letters from three of the MNOs relating to this matter. These letters (excised of any c-in-c information as identified by the MNOs) were placed on the ACCC website.


ACCC letters to MNOs regarding 'busy hour'




Draft MTAS pricing principles determination 1 July 2007 to 31 December 2008

The ACCC sought submissions from interested parties on the indicative price of 9 cents per minute contained in the Draft MTAS pricing principles determination to apply at this stage for 1 July 2007 to 31 December 2008 as informed by the WIK model and other corroborating information. The Draft MTAS pricing principles determination and supporting documentation are available below. The closing date for submissions was AEST 9.00 am on Monday, 6 August 2007. Public versions of submissions are available below.

As noted in the discussion paper, interested parties that signed the access deed for the WIK mobile network and cost model—Version 1.1 were provided with a copy of version 1.1 of the WIK model on CD-ROM. The WIK model was made available from 9.00 am on Friday, 22 June 2007 for the interested parties that signed the WIK model access deed.




Submissions on the Draft MTAS pricing principles determination 1 July 2007 to 31 December 2008 Discussion Paper

Vodafone provided a submission to the ACCC that contains c-in-c material. Parties wishing to contact Vodafone about the confidential submission should write to:

Luke Van Hooft, Senior Economic Policy Analyst
Vodafone Australia Pty Ltd, Locked Bag 1581, Chatswood, NSW 2067
Email: luke.vanhooft@vodafone.com


Vodafone submission on draft MTAS pricing principles discussion paper, Aug 07

Optus provided a submission to the ACCC that contains c-in-c material. Parties wishing to contact Optus about the confidential submission should write to:

The Director, Corporate and Regulatory Affairs
1 Lyonpark Road, Macquarie Park  NSW 2113
Fax: (02) 8082 9155


Optus's submission on draft MTAS pricing principles discussion paper, Aug 07
 

E-mail to Vodafone refuting 60 per cent underestimation of the MTAS cost

On 5 September 2007 the ACCC wrote to Vodafone clarifying the treatment of service and dimensioning traffic in the WIK model. The following email was sent to Vodafone.

E-mail sent to Vodafone

Letters to MNOs about network elements and sites information

On 6 September 2007 the ACCC wrote to the second generation mobile network operators in Australia seeking their assistance in providing information about the number of base transceiver stations (BTSs), Node Bs, sites and the extent of sharing on their 2G networks by28 September 2007. All mobile network operators responded by providing c-in-c information or responses using publicly available information, or both. The following are the public versions of the responses received by the ACCC.

Optus provided information to the ACCC that contains c-in-c material. Parties wishing to contact Optus about the confidential information should write to:

The Director, Corporate and Regulatory Affairs
1 Lyonpark Road, Macquarie Park NSW  2113
Fax: (02) 8082 9155


ACCC letters to MNOs regarding BTSs, Node Bs and sites


Vodafone has provided a letter to the ACCC which contains commercial-in-confidence material. Parties wishing to contact Vodafone about the confidential letter should write to:

Attention: Luke Van Hooft, Senior Economic Policy Analyst
Address: Vodafone Australia Pty Ltd, Locked Bag 1581, Chatswood, NSW 2067
Email: luke.vanhooft@vodafone.com



MTAS pricing principles determination 1 July 2007 to 31 December 2008

The Commission has set the indicative price of 9 cents per minute contained in the MTAS Pricing Principles Determination to apply for 1 July 2007 to 31 December 2008 as informed by the WIK Model, and other corroborating information and supporting documentation are available below.

Interested parties that sign the access deed for the WIK Mobile Network and Cost Model—Version 1.2 will be provided with a copy of version 1.2 of the WIK Model on CD-ROM.

The new version of the WIK Model will be made available for the interested parties that sign the WIK Model Access Deed.




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