The competition watchdog, the Australian Competition and Consumer Commission (ACCC), says Australia’s market for broadband and voice services is operating competitively despite the levels of market concentration.
In a report on the communications sector published on Thursday, the ACCC chief Rod Sims says that despite market concentration, competition in the sector is leading to lower prices, greater choice in services and service providers, and “bigger inclusions for voice and broadband services on fixed and mobile networks”.
“Competition will increase further as Vodafone expands its NBN footprint and TPG deploys its wireless network, bringing additional choice to consumers in terms of quality and pricing of telecommunications services,” Sims says.
But, the ACCC chief says it is important, however, that progress on NBN speeds, pricing, and service standards issues is sustained.
{loadposition peter}“In particular, and given the improvements to NBN consumer experience as a result of its recent promotional pricing, the ACCC looks forward to NBN Co putting in place longer term arrangements for its pricing directed at encouraging the efficient use of its network.”
The market study examined likely competition and efficiency developments in the communications sector over the next five years during which 5G technology will be adopted, the NBN rollout completed and the Government’s plans announced.
The ACCC’s final report includes 28 recommendations and actions on competition and consumer issues.
And, the ACCC says that much has changed in the communications industry since it published its draft report in October 2017.
“Since then, the ACCC has secured eight court-enforceable undertakings from various internet service providers on NBN speeds, and commenced an inquiry into NBN wholesale service standards. NBN Co launched promotional pricing for its 50Mbps speed product and CVC charges, responding to concerns by service providers,” the report notes.
Sims says the ACCC is currently consulting relevant stakeholders on licence allocation limits for the forthcoming auction of 3.6 Ghz spectrum by the ACMA, and this is part of a broader spectrum band that has been identified internationally for early deployment of 5G services.
“While there is still some uncertainty about the nature and timing of 5G deployment, we are confident it will create great opportunities for both industry and consumers. 5G also has the potential to accelerate fixed to wireless substitution,” Sims said.
“Importantly, the price and service performance of NBN services will influence the extent to which this substitution will occur.”
To access the ACCC’s final report and a fact sheet click here.
