17 June 2004
87/04CONSUMERS CONTINUE TO BENEFIT FROM TELECOMMUNICATIONS REFORMS
The introduction of competition into the telecommunications market continues to deliver benefits to consumers and businesses according to three Australian Competition and Consumer Commission(ACCC) reports tabled in Parliament today.
The first report, Changes in the prices paid for telecommunications services in Australia, indicates that overall, phone call costs in 2002-03 remained 20 per cent below 1997-98 levels.
The report shows that fixed to mobile call costs have fallen on average by 22 per cent, mobile calls are down 24 per cent, long distance calls have dropped nearly 31 per cent, local call costs have decreased by 37 per cent and international call costs have fallen by 61 per cent.
The second ACCC report tabled today, the Competitive Safeguards Report, shows that there was evidence of consolidation in the industry in 2002-03. However, since that time, there has been a number of signs that competition is again improving. Competing service providers appear to be enjoying greater levels of revenue growth.
The level of competition among retail service providers has also increased, with 15 per cent of Telstra's local access lines now being resold by competitors.
The report indicates that in the broadband market an increasing percentage of new customers is being connected through a range of competing service providers.
It is also encouraging that since the period covered by the report, there have been signs of increased infrastructure competition in the broadband market with the new wireless providers and more companies announcing they will be installing their own ADSL infrastructure.
This report also showed a 37.9 per cent reduction in the number of consumer complaints about telecommunications services in 2002-03 compared to 2001-02.
The third ACCC report, Telstra's compliance with the price control arrangements, found that Telstra complied with the retail price control arrangements in 2002-03.
These three reports demonstrate that competition, together with targeted government intervention where it is most needed, is driving improvements in choice, service and prices for consumers.
The Government recognises the need for continued scrutiny of the regulatory framework and will continue to monitor industry developments and respond where necessary to facilitate industry outcomes that are in the best interests of consumers.
Media Contact: Carina Tan-Van Baren (02) 6277 7480 or 0439 425 373
