The Australian Competition and Consumer Commission's Telecommunications Reports 2008–09, tabled in Parliament yesterday, show that consumers continued to enjoy price declines for phone and internet services during 2008-09.
The annual reports on competition and pricing in the industry reveal that service prices for fixed-line voice fell by 2.6 per cent, mobile voice services by 7.8 per cent and fixed and mobile internet by 4.6 per cent during the period.
At the same time the reports conclude that markets for Australian telecommunications are evolving with increased innovation in mobile platforms and continuing uptake and utilisation of data services over fixed and mobile networks.
On the back of high levels of investment in previous years 2008–09 also saw continued investment in the industry including:
- capital investment of $10.8 billion, which is at a comparable level to 2007–08 investment, and more than twice the expenditure in 2005–06
- upgrades to both Optus's and Telstra's 3G mobile network infrastructure
- continuing investment in DSLAM infrastructure, but within a stable footprint, suggesting that markets may be approaching a natural limit to competitive advances in this area, and
- investment in transmission routes, including a fibre link between Tasmania and the mainland and international fibre links.
However, telecommunications markets were delivering outcomes that did not meet all consumers' expectations, with consumer complaints continuing to increase. In this regard, during 2008-09, the ACCC accepted undertakings from network operators to improve the clarity and reasonableness of marketing practices.
The ACCC also concluded that there were a number of developments during the course of the period with the clear potential to strengthen the competitive landscape for telecommunications services, and alter the form of access regulation that is likely to be required in the future. These include the government's proposed reforms to the telecommunications access regime and the announced roll-out of the NBN to be operated on an open access wholesale business model.
The report was tabled in the Australian Parliament yesterday and will be available on the ACCC website.