The Australian Competition and Consumer Commission has determined its draft approach to pricing for wholesale GSM mobile termination services.
The ACCC's draft view is that wholesale GSM mobile termination services should be regulated less extensively than fixed line services.
However, the ACCC believes a case exists for some intervention in the mobile market.
"The ACCC considers that the retail mobile market is subject to increasing competition for retail customers and is still developing in terms of new entry by mobile carriers and increased mobile penetration rates", ACCC Chairman, Professor Allan Fels, said today. "However, the ACCC is concerned that the benefits of increased competition in the mobile sector will not be passed on to fixed line customers calling mobile services".
The draft report proposes that a pricing rule be established that ensures that the prices of wholesale GSM mobile termination services decrease at the same rate as GSM retail prices.
While the pricing principles only apply to wholesale GSM mobile termination services, the ACCC intends to consider whether they should also apply to other newer mobile networks such as CDMA services.
"The ACCC also intends to monitor developments in the mobile services market to ensure that the benefits of an increasingly competitive retail element are passed on through lower prices for fixed-to-mobile calls". Professor Fels said. "The pricing approach, and the mobile services market more generally, will be reviewed by the ACCC in two years time".
The ACCC is seeking comments on the draft pricing approach, by Friday 2 February 2001.