Prefer WhistleOut in Google
The Australian Competition and Consumer Commission (ACCC) is taking a closer look at mobile service markets to determine whether additional regulation would lead to better outcomes for consumers. The inquiry is set to run for 12 months, with domestic roaming in particular said to be under the microscope.
“The telecommunications sector is changing rapidly, with new technologies creating opportunities and challenges for mobile coverage and competition,” said ACCC Commissioner Anna Brakey
Acknowledging the importance of mobile coverage, provider choice and network reliability, particularly for people in regional areas, Brakey framed the inquiry as a response to growing calls for the ACCC to intervene in the mobile services market.
Brakey said that new technologies are changing the way mobile services are delivered in Australia.
“These are complex and evolving issues. Consumers expect and need affordable, reliable and high-quality services. Businesses and investors need confidence to make efficient investments.”
“We consider that now is the right time to examine these issues, recognising there are a range of views on the best way forward and that these matters warrant careful, considered assessment,” she said.
Other issues that the ACCC is looking to examine include how mobile coverage and consumer needs are changing in rural and remote areas, the current state of competition in the supply of mobile services, and whether consumers have a meaningful choice between providers. The inquiry will also look into the potential impact of new low earth orbit (LEO) satellite services might be when it comes to consumers, investment, and competition within Australia’s mobile market.
Depending on how things play out and what the regulator’s examination of the sector uncovers, Australia’s mobile providers may end up having to offer other providers access to services that use its infrastructure or network on terms regulated by the ACCC. Domestic roaming, for example, is the idea that if someone is in an area where they don’t have coverage within Australia, they would be able to roam onto the network of another provider that does. This allows them to continue using data, making calls, and sending text messages, even outside of their “home network’s” coverage area.
However, Brakey emphasised that the regulator would only make such regulatory moves if doing so would primarily benefit end users over the long term.
“We look forward to consulting widely across the sector and have not formed a view on whether any mobile access service should be declared,” Brakey said.
In a press release issued in response to the inquiry, consumer advocacy group Australian Communications Consumer Action Network (ACCAN) argued that the ACCC should move directly to implementing domestic roaming.
"The government already have the evidence and the legislative pathway needed to act now. There is a bill before Parliament - the Universal Outdoor Mobile Obligation Bill - which, with simple amendments, would allow the ACCC to declare domestic mobile roaming and get on with the job of implementation," said ACCAN CEO Carol Bennett.
"We can declare this service in the next sitting of parliament and get the ACCC down to brass tacks. For consumers, a reliable mobile connection means being able to stay in contact with family, friends, clients and emergency services. A lengthy review risks delaying these benefits by years we don't have."
The ACCC investigated mandatory domestic roaming in 2016 and decided against it, citing concerns it would reduce incentives for telcos to invest in their networks and not lead to lower prices.
Fergus Halliday
Digital Content Editor
Related Articles
