Analysis by the Australian Competition and Consumer Commission (ACCC) has revealed that millions of consumers will pay more for their mobile phone plans after recent price increases by all three big telco companies.
Since July 2020, Telstra, Optus and Vodafone have increased the price of several post-paid plans and have effectively increased the price of a range of pre-paid plans by reducing their expiry periods, forcing customers to recharge more often.
Telstra, Optus and Vodafone collectively hold 87 per cent of the total retail mobile phone market and have more than 95 per cent of the post-paid market.
Chair of the ACCC, Rod Sims said the behaviour of the three big telcos would suggest they were not concerned about losing customers to rivals.
“The ACCC opposed the merger of TPG and Vodafone because we were concerned it would lead to higher mobile prices and result in three similar providers with little incentive to compete strongly,” Mr Sims said.
“Despite evidence showing the three mobile network owners reacted strongly to the potential competitive threat of a new TPG network, it was considered that the merger would be pro-competitive, allowing Vodafone to compete more effectively against Telstra and Optus.”
He said when markets ended up with a smaller group of large look-alike players with stable positions, competition was muted and consumers paid more.
“The ACCC encourages Telstra, Optus and Vodafone mobile customers to compare the prices and features offered by smaller providers that re-sell services on the networks of the three mobile network operators,” Mr Sims said.
“Small providers offer cheaper alternatives for consumers.
“Although their plans usually don’t include extras such as access to content, their voice calls, SMS and data packages are similar to those offered by the three network operators.”
Mr Sims said Telstra, Optus and Vodafone customers could save between $5 and $25 per month, and possibly more, by moving to a different provider with comparable data inclusions.
