MORE COMPETITION, BETTER PRICES IN TELECOMMUNICATIONS
28 June 2004
91/04
Australian telecommunications consumers will benefit from more choice of service providers and more competitive prices under lower carrier licence charges announced by the by the Australian Communications Authority (ACA) today.
The ACA has reduced the current application charge for a telecommunications carrier licence from $10,000 to $2200 and the minimum annual charge of $10,000 to less than $1000.
These reductions should encourage more carriers to enter the telecommunications market, boosting competition, efficiency and providing more choice for consumers.
In a market that offers opportunities for small innovative operators, the carrier licence fee arrangements could potentially be a barrier to entry. These changes to carrier licensing arrangements remove this barrier.
Rural and remote areas will particularly benefit from the lower charges, which will reduce the costs of providing a regionally-focussed telecommunications service.
The ACA's decision is in line with its review of Minimum Charges for Carrier Licences and Licence Applications. And it follows the Howard Government's request to the ACA in April 2003 that it report on appropriate charges for the carrier licence application and the annual carrier licence.
Today's announcement also enhances the policy framework the Government has already put in place to promote competition and encourage innovation. This framework has already opened up the sector to many new players.
New carriers are increasingly niche based operators, offering a range of innovative new services, such as fixed wireless broadband services.
As a result of the Government's deregulation of the sector in 1997, there are now more than 100 telecommunications carriers nationwide, 24 mobile service providers, more than 650 Internet service providers and more than 160 broadband service providers.
Today's changes to the licensing arrangements will help these markets to grow even further.
