The Australian Competition and Consumer Commission (ACCC) has given the Australian communications industry a positive report card, finding the broadband and voice services markets to be operating competitively despite levels of concentration.
In the final report of its Communications Sector Market Study, the Commission found competition to be delivering benefits to consumers.
Chair of the ACCC, Rod Sims said that despite market concentration, competition in the sector was leading to lower prices, greater choice in services and service providers, and bigger inclusions for voice and broadband services on fixed and mobile networks.
“Much has changed since the ACCC published its draft report in October 2017,” Mr Sims said.
“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.”
He said he expected competition to increase further as Vodafone expanded its NBN footprint and TPG deployed its wireless network, bringing additional choice to consumers in terms of quality and pricing of telecommunications services.
ACCC’s market study examined likely competition and efficiency developments in the communications sector over the next five years during which 5G technology would be adopted and the NBN rollout completed.
“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,” Mr Sims said.
“5G also has the potential to accelerate fixed to wireless substitution,” he said.
The ACCC’s 175-page report can be accessed at this PS News link.
