ACCC Releases Issues Paper for Communications Market Study
Monday 12 September 2016 @ 12.53 p.m. | Legal Research | Trade & Commerce
The Australian Competition and Consumer Commission (ACCC) has announced via media release on 5 September 2016, the release of their new issues paper regarding the communications sector and their ongoing market study.
Background to the Market Study
As previously mentioned by TimeBase, the ACCC is undertaking the market study to ensure that the implications of developments in the communication sector are well understood, to identify issues that prevent relevant markets from delivering economically efficient and competitive outcomes in the interests of consumers, and to identify options, if required, to address these issues.
In particular, the market study will give the regulator a chance to examine whether network capacity can meet consumer demands and access to dark (unused) fibre. The study will also examine over-the-top communications markets, such as social media and marketplaces.
The Issues Paper
The ACCC has released an issues paper outlining the areas they propose to explore as part of the communications sector market study and to assist interested parties in making submissions. The issues discussed in the paper are intended to be a guide and are not exhaustive but include currently:
- Consumer trends and issues;
- Emerging services;
- Fixed line voice and broadband services;
- Mobile voice and broadband services;
- Interaction between fixed line and mobile services; and
- Core and transmission networks and services.
Submissions are due to the ACCC on the Issues Paper by 14 October 2016 with a draft report due to be released in July 2017 and a final report to be released in November 2017.
Reaction from the Public
As an extension of the market study, the ACCC is also investigating whether or not telecommunications companies should be forced to provide mobile phone roaming services for all Australians, an inquiry which, according to the ABC News, was prompted by an increasing number of complaints from rural residents who cannot get coverage outside regional centres unless they are Telstra customers.
ACCC chairman Rod Sims said Telstra currently owned the majority of mobile phone towers across regional Australia, and that declaring a national roaming service would create more competition among telcos operating there. Telstra's company's corporate affairs chief Dr Tony Warren said in a statement that:
"Declaring mobile roaming would stop coverage being a differentiator in the Australian market and therefore, remove the key rationale for investment in regional Australia for all operators.
Declaration would ensure there is no incentive for any operator to invest for competitive reasons in many regional areas."
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