The Australian Competition and Consumer Commission (ACCC) is set to review nine regulated telecommunications services, primarilyThe Australian Competition and Consumer Commission (ACCC) is set to review nine regulated telecommunications services, primarily.
These services, known as “declared” services, are subject to the ACCC’s authority to establish pricing and access terms. The regulated services encompass voice calls, resale of analog fixed line phone services, data transmission, and ADSL resale.
Given that most consumer-grade telecommunications and broadband services now utilize the National Broadband Network (NBN) or other infrastructure, the ACCC seeks to determine whether continued regulation of these services is necessary.
Regarding data transmission, the ACCC acknowledges substantial competition in metropolitan areas and intercapital routes. However, it notes that Telstra still holds an advantage in regional Australia. This regional advantage could present a risk if regulations were to be lifted without proper safeguards.
The commission’s discussion paper highlights Telstra’s dominance in regional and remote areas, where it remains the sole operator of transmission networks, often located far from alternative infrastructure. Without regulation, Telstra would have the power to dictate access terms in these regions, potentially impeding competition and hindering investment in supporting infrastructure for downstream services.
Extending the declaration of regulated services and implementing cost-reflective price terms for transmission access is seen as a way to promote further investment in related markets by reducing barriers and ensuring fair access.
Additionally, the ACCC plans to examine the impact of newer technologies, such as instant messaging and video conferencing apps, on relevant telecommunications services and consider their implications for regulation.
The ACCC is inviting industry submissions on these matters until July 12.