whether the costs that would be involved are reasonable or likely to become reasonable, and the effects or likely effects of supplying and charging for the service on the operation or performance of telecommunications networks. The ACCC assesses the technical feasibility of supplying the relevant service by examining the access ability to provide the service and considering experiences in other provider’s jurisdictions. The legitimate commercial interests of the infrastructure operator An infrastructure legitimate commercial interests relate to its obligations to the operator’s owners of the firm, including the need to recover the costs of providing services and to earn a normal commercial return on the investment in infrastructure. Allowing for a normal commercial return on investment provides an appropriate incentive for the access provider to maintain, improve and invest in the efficient provision of the service. Sub-section 152AB(6)(b) of the CCA also requires the ACCC to have regard to whether providing access may affect the infrastructure ability to exploit economies of scale operator’s and scope. Economies of scale arise from a production process in which the average (or per unit) cost of production decreases as the output increases. Economies of scope arise firm’s where it is less costly for one firm to produce two (or more) products than it is for two (or more) firms to each separately produce the relevant products. The ACCC assesses the effects on an infrastructure ability to exploit both economies of scale and scope on a operator’s basis. Incentives for efficient investment Infrastructure operators should have the incentive to invest efficiently in the infrastructure by which the services are supplied (or are capable or likely to become capable, of being supplied). In assessing incentives for investment, regard must be had (but is not limited) to the risks involved in making the investment. Access regulation may promote efficient investment in infrastructure by avoiding the need for access seekers to duplicate existing infrastructure where duplication would be inefficient. It reduces the barriers to entry for competing providers of services to end-users and promotes efficient investments by these service providers in related equipment that is required to provide services to end-users. Will declaration promote competition? When conducting a declaration inquiry, the ACCC is required under subsection 152AB(2) of the CCA to consider whether declaration of a service is likely to promote competition in relevant markets. In assessing whether declaration will promote competition in markets for telecommunications services, the ACCC considers that it is useful to consider the likely state of competition in the future both with declaration and without declaration.
whether the costs that would be involved are reasonable or likely to become reasonable, and the effects or likely effects of supplying and charging for the service on the operation or performance of telecommunications networks. The ACCC assesses the technical feasibility of supplying the relevant service by examining the access provider’s ability to provide the service and considering experiences in other jurisdictions. The legitimate commercial interests of the infrastructure operator An infrastructure operator’s legitimate commercial interests relate to its obligations to the owners of the firm, including the need to recover the costs of providing services and to earn a normal commercial return on the investment in infrastructure. Allowing for a normal commercial return on investment provides an appropriate incentive for the access provider to maintain, improve and invest in the efficient provision of the service. Sub-section 152AB(6)(b) of the CCA also requires the ACCC to have regard to whether providing access may affect the infrastructure operator’s ability to exploit economies of scale and scope. Economies of scale arise from a production process in which the average (or per unit) cost of production decreases as the firm’s output increases. Economies of scope arise where it is less costly for one firm to produce two (or more) products than it is for two (or more) firms to each separately produce the relevant products. The ACCC assesses the effects on an infrastructure operator’s ability to exploit both economies of scale and scope on a basis. Incentives for efficient investment Infrastructure operators should have the incentive to invest efficiently in the infrastructure by which the services are supplied (or are capable or likely to become capable, of being supplied). In assessing incentives for investment, regard must be had (but is not limited) to the risks involved in making the investment. Access regulation may promote efficient investment in infrastructure by avoiding the need for access seekers to duplicate existing infrastructure where duplication would be inefficient. It reduces the barriers to entry for competing providers of services to end-users and promotes efficient investments by these service providers in related equipment that is required to provide services to end-users. Will declaration promote competition? When conducting a declaration inquiry, the ACCC is required under subsection 152AB(2) of the CCA to consider whether declaration of a service is likely to promote competition in relevant markets. In assessing whether declaration will promote competition in markets for telecommunications services, the ACCC considers that it is useful to consider the likely state of competition in the future both with declaration and without declaration.