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Court forces Telstra to arbitrate in access row

Court forces Telstra to arbitrate in access row

Federal Court rules Telstra must enter ACCC arbitration process

Australia’s peak competition regulator is set to step in and resolve a stoush over access rights between Telstra, Vocus, Adam Internet and Chime Communications.

The Federal Court has handed down a decision on a judicial review application commenced by Telstra on January 3 against the Australian Competition and Consumer Commission and three access seekers.

Telstra sought review of the ACCC’s jurisdiction to arbitrate three disputes that were notified by Vocus Fibre Pty Ltd, Adam Internet Pty Ltd and Chime Communications Pty Ltd.

The disputes were notified to the ACCC under the Telecommunications Act 1997 and concern Telstra’s proposed variations to charges for access to facilities, including space for equipment in Telstra’s telephone exchanges, pursuant to agreements with the access seekers which allowed Telstra to notify variations to charges.

The access seekers did not agree to the varied charges notified by Telstra. The issue before the court was whether there was a “dispute” which could be arbitrated by the ACCC in these circumstances.

Justice Flick rejected Telstra’s argument that there was no failure to agree between Telstra and each of the access seekers, and accordingly found that there was a dispute which could be arbitrated by the ACCC.

ACCC Chairman Rod Sims said the ACCC welcomed the clarification of its jurisdiction to arbitrate access disputes notified to it.

The arbitration of these disputes will now proceed. As the arbitrations are conducted in private, the ACCC will be able to comment publicly on the matter.

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Tags Telstrafederal courtAdam InternetVocusChime CommunicationsACCC chairman Rod SimsJustice Flick

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