ACCC RULING ON INTERCONNECT RATES A STEP IN THE RIGHT DIRECTION

Cable & Wireless Optus today welcomed, as a step in the right direction, the decision by the Australian Competition and Consumer Commission's (ACCC) to more than halve interconnect rates.

According to the ACCC, the average interconnect charge for 1998/99 should be around 2" a minute, inclusive of the 0.8" access deficit contribution. Cable & Wireless Optus has argued that interconnect rates should be set at between 1" and 1.2", bringing Australia into line with the world's ten best practice carriers.

"Today's decision by the ACCC goes a long way towards making Australian interconnect rates more competitive by international standards. In the very competitive Australian market, this should quickly translate into real gains for consumers," said Cable & Wireless Optus Director of Regulatory and Public Affairs, Stephe Wilks.

The Federal Government's recent decision to modify the price cap on line rental and local calls will allow Telstra to rebalance its line rental charge, effectively removing any access deficit as well as the requirement for carriers to pay an access deficit contribution.

"Cable & Wireless Optus hopes the ACCC will move quickly to clarify the full impact which the removal of Telstra's access deficit will have on interconnect rates," added Mr Wilks.

For more information:
Stephen Woodhill
Cable & Wireless Optus
Phone: 02 9342 7850
Email: stephen.woodhill@cwo.com.au