Australia pushed for promotion of competition and growth in the f...

Alston, directed the Australian Communications Authority (ACA) to make a number of changes in the CSG. Under the CSG, which was introduced in 1998, telephone companies must meet specific time frames for the connection and repair of telephone services and meeting appointment times for residential and small business customers. Companies that fail to meet the time frames are required to make automatic compensation payments to customers. However, citing a recent ACA report, the regulator said blanket application of the CSG “may be a barrier to entry into the fixed phone market and can reduce potential consumer benefits including price, quality, choice and innovation.” Under the new arrangements, the exemption scheme will apply only to telephone companies with a small share of the market in a specified geographic area. Such companies will have to prove that they don’t supply fixed phone services on a medium or large scale in the area for which an exemption is sought, and that the proposed exemption would benefit consumers in the area. To ensure consumers aren’t disadvantaged by the exemption, the exempt telephone companies will be required to inform their customers of that fact and its implications. Telstra won’t be eligible for an exemption under the changes.