ACCC Launches Mobile Services Inquiry

ACCC

The ACCC is commencing an inquiry to examine regional mobile coverage across Australia and whether regulating wholesale access to some mobile services could improve consumer outcomes.

The inquiry will run for approximately 12 months and will consider whether the ACCC should declare one or more wholesale mobile services, including domestic roaming and a radio access network service.

“The ACCC recognises the importance of mobile coverage, provider choice and network reliability, particularly for people living, working and travelling in regional areas,” ACCC Commissioner Anna Brakey said.

“The telecommunications sector is changing rapidly, with new technologies creating opportunities and challenges for mobile coverage and competition. At the same time there are growing calls for the ACCC to intervene to regulate wholesale mobile services, particularly in regional areas.”

“These are complex and evolving issues. Consumers expect and need affordable, reliable and high-quality services. Businesses and investors need confidence to make efficient investments,” Ms Brakey said.

“We consider that now is the right time to examine these issues, recognising there are a range of views on the best way forward and that these matters warrant careful, considered assessment.”

New technologies, including satellite-based services and network-sharing arrangements, are changing the way mobile services are delivered in Australia.

If the ACCC were to declare a service following this inquiry, it may mean a mobile provider would have to give other providers access to services using its infrastructure or network on terms regulated by the ACCC.

The ACCC will only make a declaration if it considers doing so would benefit end users (primarily consumers) over the long term.

“We continue to see significant interest in access to mobile networks, including from regional and consumer groups, industry participants, as well as through parliamentary processes and recent reviews,” Ms Brakey said.

“This inquiry will allow us to examine current market conditions and new technologies through a public, evidence-based and consultative process before deciding whether regulation is needed.”

“We look forward to consulting widely across the sector and have not formed a view on whether any mobile access service should be declared,” Ms Brakey said.

In deciding to launch the inquiry, the ACCC also took into account the proposed introduction of the Universal Outdoor Mobile Obligation in 2027 and the upcoming 2 GHz spectrum allocation by the Australian Communications and Media Authority.

The inquiry will consider a range of issues including:

  • how mobile coverage and consumer needs are changing, particularly in regional and remote areas
  • the current state of competition in the supply of mobile services and how the proposals may affect competition
  • whether consumers have meaningful choice between mobile providers
  • how regulation could affect investment in mobile networks
  • the role of new direct-to-device low earth orbit satellite services and their potential impact on investment, competition and consumer outcomes in the Australian mobiles market.

The ACCC will shortly release a discussion paper setting out the issues for the inquiry and will hold forums in regional and remote Australia in the coming months to hear directly from communities about their experiences with mobile services and coverage.

More information is available on the ACCC website.

Note

The ACCC is conducting the inquiry under Part 25 of the Telecommunications Act 1997.

After having conducted a declaration inquiry, the ACCC can declare a telecommunications service if it is satisfied that doing so would promote the long-term interests of end users.

Once a service is declared, a service provider must provide access to the service upon request and where commercial agreement cannot be reached the ACCC may determine regulated price and non-price terms.

Declaration ensures all service providers have access to the infrastructure they need to supply competitive communications services to end-users.

Domestic roaming means consumers could use another provider’s network when they are outside their own provider’s coverage area.

Declaring a radio access network service could allow providers to share mobile infrastructure, such as towers and radio equipment, while continuing to manage their own customers and services.

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