6Alteration in value of service

6 Alteration in value of service

(1) For the purposes of this Determination, and without limiting the ordinary meaning of alteration or movement in relation to a price: (a) the price charged for a service may be taken by the ACCC to have increased if the value of the service reduces because of an alteration made by Telstra to the quality of the service or the provision of the service; and (b) the price charged for a service may be taken by the ACCC to have decreased if the value of the service increases because of an alteration in the quality of service or the provision of the service. (2) Where the price charged for a service is taken to have increased by reason of paragraph (1)(a), the amount by which that price shall be taken by the ACCC to have increased shall be the price which, having regard to the prices paid for similar service functionality, a customer would be reasonably expected to pay to secure that service functionality. (3) Where the price charged for a service is taken to have decreased by reason of paragraph (1)(b), the amount by which that price shall be taken by the ACCC to have decreased shall be calculated by the sum of the annualised capital and operating expense reasonably incurred by Telstra in bringing about the alteration in the quality of the service or the provision of the service (less any offsetting revenue gain) divided by the number of services or calls in respect of which that alteration is made available by Telstra. (4) Prior to making an alteration to the quality of a service or the provision of a service which would attract the operation of paragraphs (1)(a) or (1)(b), Telstra may request in writing that the ACCC advise Telstra in writing whether the proposed alteration would result in the value of the service being taken to have reduced under paragraph (1)(a) or to have increased under (1)(b) and the estimated change in value of that service which the ACCC considers would result from the proposed alteration. (5) The written request given to the ACCC under subclause (4) must include information reasonably required by the ACCC to enable it to form a view about whether the proposed alteration would result in the value of the service being taken to have reduced under paragraph (1)(a) or to have increased under (1)(b) and the estimated change in value of that service, unless: (a) if no information has been given—the ACCC has waived the giving of the information; or (b) if some only of the information has been given—the ACCC has waived the giving of the remainder of the information. (6) The ACCC must provide the advice described in subclause (4) to Telstra within 60 days of the ACCC receiving a request under subclause (4). (7) For the purposes of calculating the 60 day period in subclause (6), each day occurring during any period commencing on the day on which Telstra receives a request for information from the ACCC and ending on the day on which Telstra provides all of the requested information or, where no information or only part of the information is provided, the day on which the ACCC waives the giving of the information or the giving of the remainder of the information, is to be disregarded. (8) For the purposes of subclause (1), if: (a) the ACCC provides advice to Telstra under subclause (4) to the effect that a proposed alteration would result in the value of a service being taken to have reduced or increased; and (b) the ACCC provides advice to Telstra under subclause (4) of the estimated change in value of that service which the ACCC considers would result from the proposed alteration; and (c) the relevant alteration is subsequently made by Telstra, then: (d) the value of the service shall, for the purposes of subclause (1), be taken to have reduced or increased; and (e) where the amount by which the price has taken to have increased or decreased under subclause (2) or (3) is different to the estimated change in value which the ACCC has advised Telstra under subclause (4), the ACCC shall advise Telstra of the reasons for this change in value. (9) The change in the value of the service under subclauses (2) or (3) may be determined in accordance with a methodology (if any) developed by the ACCC in writing. (10) The ACCC must consult Telstra in developing the methodology under subclause (9) and any amendments to the methodology. (11) The methodology under subclause (9) may set out what information Telstra must provide to establish the change in value of the service. (12) The ACCC must provide to Telstra a copy of any methodology developed under subclause (9) and any amended methodology.