ACCC calls for cheaper carrier call rates

The Australian Competition and Consumer Commision (ACCC) has released a discussion paper calling for Aussie telcos to reevaluate the fees these companies charge one another, in a bid to lower the cost of telecommunications for Aussie consumers.

Before we look at the proposed price cuts, let's look at what we pay today.

What the telcos charge

Per minute rates are pretty consistent across the major Australian telcos. Flagfall is a fee charged once at the beginning of every call, so to compare fairly we include the cost of a 2-minute call.

When you compare how the telcos currently charge for calls, prices fall into two bucket: calls deducted from plan inclusions and calls that you actually pay for per-minute.

By and large, a call made as a deduction from your plan inclusions cost about $1 per minute plus flagfall, but this rate is offset by generous included value in the plans (i.e: $500 per month).

Calls made on 'pay-as-you-go' plans are much cheaper, between 5c and 15c per minute. PAYG plans will charge you for each call and SMS separately, and mobile data is an extra charge on top.

What might change

There are two specific telco charges in the crosshairs of the ACCC: Fixed line to Mobile termination fees (FTM) and Mobile to Mobile termination fees (MTM). These charges relate to the per-minute cost a telco will pay a competitor when a customer calls someone on the competitors network. Similar fees are applied to SMS messages.

According to data collected by the ACCC, Australia has the sixth highest termination rate from a list of 28 countries, including New Zealand, Germany and the UK.

The ACCC paper argues that while different the different termination services attract different rates, these service are technically the same, and therefore could be charged at the same rate. It is also recommending a ‘Bill and Keep’ pricing arrangement between network operators, that would see telcos agree to not bill each other for termination services, in return for the same.

Any change to these pricing frameworks will likely result in trickle down savings for Aussies who use mobile phones, but it could be difficult to find agreement on these charges given the size disparity between the network operators, like Telstra with over 40% market share and Vodafone with a 16% share.

How you can save today

If you’re a big talker on your mobile phone, a positive result from the ACCC discussion paper could save you money down the track, but in the meantime there are plenty of high-value plans which make it easy to make talk all day without worrying about your bill.

Unlimited plans

Starting from about $40 per month, with prices varying from telco to telco, Unlimited plans are your best option if you struggle to manage your call-making each month. Here are some great options:

Telco	Plan	Unlimited Talk and SMS	Data	Price
	Aussie Unlimited 30	Yes	100MB	$30 p.m.	Click for more information
	UNLIMITED	Yes	4GB	$39.90	Click for more information
	My Plan Plus SIM-only	Yes	2GB	$45	Click for more information
	C Red $49.90 plan	Yes	2GB	$49.90	Click for more information
	$50 SIM-only Red Plan	Yes	3GB	$50	Click for more information

Image source: Tim Parkinson/Flickr

Joseph Hanlon

Editorial Director | X | LinkedIn

Joe Hanlon has been immersed in mobile phones, plans and the internet for over a decade, having written for publications like CNET, Techradar, Gizmodo and Lifehacker. He steers the editorial ship and makes sure that we are always serving up the most useful guides and recommendations. If you ever bump into Joe on the street, don't be afraid to ask for a phone recommendation. It's embarrassing how much he enjoys talking about this stuff. He also loves listening to podcasts, so feel free to email Joe with recommendations.

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