Mobile is king and fixed line is fading fast, with consumers relying more and more on their mobile devices for voice calling, as mobile voice minutes rose by 7 billion in the 12 months to the end of the 2016-2017 financial year. And, competition has benefited consumers with price drops and better value for money, according to the competition regulator.
The latest market report from the Australian Competition and Consumer Commission (ACCC), reveals that overall demand for communication services continues to grow, and more consumers chose to rely on their mobile devices for voice calling in particular.
And the rise of 7 billion mobile voice minutes over the year more than offset a reduction in fixed-line minutes of 3 billion, the ACCC reports.
The report from the ACCC shows that not only was mobile the device of choice, but consumers also enjoyed the benefits of enhanced competition, getting services of growing value as prices fell and plan inclusions increased.
{loadposition peter}“At a time when affordability in energy markets is a major concern, competition in the broadband and mobile market is continuing to benefit consumers,” said ACCC Acting Chair Delia Rickard.
Data downloads rose by 43% over the year, with consumers continuing to rely heavily on fixed broadband connections, which accounted for 92% of all downloads.
The ACCC says the real prices for fixed internet services in the market fell by an average 4.5% year-on-year from 2014 to 2017. The range of plans and bundles available has changed significantly and a quarter of all fixed broadband plans had an unlimited data allowance, up from 5% in 2014.
On the price front consumers benefited, with real prices of mobile services dropping by an average of 7.1% each year over the same period (2014-2017), though the price of higher-priced prepaid plans increased in the last year.
“Consumers are obtaining greater value for money and receiving and using more data each year,” Rickard said.
“In other encouraging developments, we are seeing new players enter the fixed and wireless broadband markets and this will provide further competitive pressure going forward.”
The ACCC also found that mobile handsets are also the preferred way of accessing the internet, accounting for 66% of all broadband subscriptions, while fixed broadband connections are used far more intensively by businesses and consumers.
Rickard says the ACCC continues to be active in the sector and will soon release the first report of its Measuring Broadband Australia program.
“Our commitment to truth in advertising related to broadband speeds is already making it easier for Australians to choose a service provider. We have also initiated an inquiry into NBN wholesale access terms which was one of the 29 recommendations of the draft report of the communications market study,” Rickard notes.
To access the ACCC telecommunications report for 2016-2017 click here.