ACCC issues record keeping rule to Telstra for bundling
ACCC issues record keeping rule to Telstra for bundling
The Australian Competition and Consumer Commission (ACCC) has directed Telstra to record information and provide the ACCC with quarterly reports in relation to Telstra's 'bundled'' service products.
The ACCC has issued a Record Keeping Rule (RKR) to Telstra to provide information to assess the affects that bundling may have on competition across a range of telecommunications markets.
"The data will assist the ACCC with its continuing assessment of the possible anti-competitive effects of bundling, particularly relating to the choice consumers have for home services", said Professor Allan Fels the ACCC Chairman.
Competitors' complaints have increased since Telstra started wrapping pay TV, local and long distance telephony, mobile and Internet services into one discounted package (compared to the cost of acquiring individual services).
The ACCC recognises that bundling of telecommunication services can lead to increased efficiencies and provide many consumer benefits, such as lower prices and single bills. However, there is also the risk that bundling may have anti-competitive effects.
"These competition concerns largely turn on the effect that Telstra's bundling strategy may be having in limiting opportunities to compete. The data being sought will assist the ACCC to understand any such impact," Professor Fels said.
Telstra must provide information on matters such as the discounts given on a bundle of services, the number of customers receiving bundled services and whether customers currently receiving a bundle of services previously received individual services from Telstra or another provider.
There have been growing industry concerns about the current and future implications of bundling for telecommunications services, particularly for new and developing services, such as broadband and 3G mobile.
"This data will, for the first time, provide the ACCC with concrete information about the importance of bundling for consumers purchasing telecommunications services. "It is likely that further information relating to bundling will also be sought in the near future from other providers of bundled services".
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