| 4.1 | The process commenced with the cost modelling and consultation process outlined below. The cost modelling exercise, in combination with stakeholder consultation, assisted the Authority to determine the new termination rates which would apply from 1 October 2018. |
| (a) | The Authority initiated a cost modelling process on 1 October 2017, whereby it further held an industry workshop on 13 November 2017 through a series of one-on-one meetings with stakeholders. In total, there were three rounds of one-on-one meetings with stakeholders during the consultation process, taking place over a period of approximately seven months from 13 November 2017 to 22 June 2018. |
| (b) | Based on the results of the cost modelling process, the Authority amended the 2014 Call Termination Regulations, taking into consideration the outcome of both the Top -Down and Bottom-Up cost models. This resulted in the draft Call Termination Regulations, 2018. |
| (c) | On 22 June 2018, the Authority published a Briefing Note on Asymmetry in Mobile and Fixed Wholesale Voice Call Termination ("Briefing Note") on the Authorities website. |
| (d) | In the Briefing Note, the Authority states that it is of the view that: |
| (i) | No new evidence has been submitted by the operators to persuade the Authority that the market for the provision of mobile and fixed wholesale voice call termination services has substantially changed; |
| (ii) | Despite the progress made by small (late) entrants in recent years, competition in these wholesale voice call termination markets remains ineffective; |
| (iii) | Each Individual Electronic Communications Network Service and Electronic Communications Service licensee that offers wholesale voice call termination services continues to have Significant Market Power, as defined in section 67(5) of the ECA, in respect of access to their own networks; |
| (iv) | The four market failures as per regulation 7(1) of the 2014 Call Termination Regulations as amended may still exist in the absence of regulation; and |
| (v) | The pro -competitive conditions imposed on licensees in 2014 are still relevant. |
| (e) | The draft Call Termination Regulations, 2018, were published in the Government Gazette (Notice No. 489 of 41845) on 16 August 2018, for public comments, for a period of twenty-one (21) calendar days. The submission deadline for stakeholders to make comments was the 7th of September 2018. |
| (f) | The Authority resolved to allow interested stakeholders to make oral presentations on their submissions. A notice was published in the Government Gazette (Notice No. 892 of 41859) to inform all interested stakeholders of the Authority's intention to hold public hearings on the 10th of September 2018. |
| (g) | The following stakeholders made oral presentations on the draft Call Termination Regulations, 2018: |
| (i) | Mobile Telephone Networks Pty Ltd; |
| (iv) | Jethro Consulting Solution Pty Ltd; |
| (vi) | Switch Telecom Pty Ltd. |
| 4.2 | Taking into account the submissions received and the oral presentations made by the stakeholders, the Authority amended the draft Call Termination Regulations which resulted in the final Regulations6 which were published on the 28th of September 2018 in the Government Gazette. |
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| 6 | Amendment of the Call Termination Regulations,2014 (Notice No.1016 of Government Gazette 41943). |
