ACCC tackles mobile telephone service pricing

The ACCC is particularly concerned over the price of wholesale mobile termination rates -- the price paid by one mobile carrier to another when a customer makes a call to someone on a different network.

In 2001 the ACCC intervened to set indicative mobile termination prices following a number of disputes between fixed line and mobile carriers.

"The review fulfils an ACCC commitment, made at the time of the issuing of the pricing approach for the wholesale mobile termination service, that it would review its regulation of this service in two years' time," said Ross Jones, the ACCC Commissioner responsible for telecommunications.

"This issue is of particular concern as the prices consumers pay to make calls from a fixed line phone to somebody on a mobile phone have remained fairly static, while the prices for other fixed line services like national and international long distance calls have fallen considerably," said Jones.

Although the prices for mobile-to-mobile and fixed-to-mobile fell between 1997 and 2001, the ACCC is concerned that the prices have not fallen enough, and that the price falls slowed down during 2000-2001.

The ACCC has taken the opportunity to review several other issues related to mobile phones as well, and has issued a discussion paper calling for comment on mobile termination fees, mobile origination fees (the money paid to mobile carriers by providers of 13/1300 and 1800 numbers when their service is accessed via a mobile), domestic and international roaming (when a customer of one carrier uses the network of another carrier) and the inclusion of 3G networks into the regulatory scheme.

"The ACCC sees this as an opportunity to examine the extent and need for regulation in the mobile services industry so that consumers can enjoy the full benefit of the growing array of existing, and new mobile services that will be available over the next few years," said Jones.

The Shadow Minister for Communications, Lindsay Tanner, has welcomed the review, but claims it should go further.

"The mobile phone industry is dominated by Telstra, Optus and Vodafone," said Tanner. "Last year these three carriers raised their SMS rates on standard plans to 25c each. The ACCC must inquire fully into this uniform pricing move by the three major carriers."

Interested parties have until 13 June 2003 to make submissions addressing any of the issues contained in the ACCC's discussion paper.