ACCC to monitor the provision of domestic inter-carrier roaming services on CDMA mobile networks
Australian mobile carriers that offer domestic inter-carrier roaming (domestic roaming) on second generation CDMA mobile networks will be required to provide the Australian Competition and Consumer Commission with details of the terms and conditions they charge for this service, following a final decision made by the ACCC today.
Domestic roaming is a wholesale service sold by one mobile network carrier to another. Mobile carriers can use this service to enable their subscribers to make and receive mobile phone calls in areas where they do not have network coverage by using (or 'roaming' on to) another carrier's network.
The decision to monitor the terms and conditions upon which domestic roaming services are provided on CDMA mobile networks follows a final decision by the ACCC not to declare a domestic roaming service.
"The ACCC's inquiry found that roaming has a number of benefits", said an ACCC Commissioner, Mr Ed Willett. "At this point in time, however, the ACCC is not convinced that these benefits can't be achieved in the absence of declaration of this service.
"This is particularly the case with regard to the provision of the service on GSM mobile networks where most purchasers of this service appear content with their ability to acquire the service on reasonable terms and conditions.
"However, following release of its inquiry draft decision in October 2004, the ACCC has become aware of complaints and concerns within some quarters of the industry with respect to the provision of domestic roaming services on CDMA mobile networks.
"CDMA mobile networks are particularly important for rural and remote consumers, where this form of network technology is popular among consumers. Telstra is the only mobile network operator with a nationwide CDMA mobile network.
"The ACCC has therefore reached a view that while it is not appropriate to more intrusively regulate the provision of domestic roaming services at this point in time, it will formally monitor the provision of the service on CDMA mobile networks in the future.
"After considering the views of interested parties in response to the ACCC’s Draft Decision, the ACCC has decided it will not extend its monitoring to include provision of domestic roaming on GSM networks due to the more favourable competitive conditions that appear to be evident in the market for this service".
The ACCC has issued a draft of its proposed record-keeping rule for public comment. Interested parties have until 28 January 2005 to provide comments to the ACCC.
Given Telstra is the only provider of a CDMA domestic roaming service at present, these rules will only apply to Telstra at this point in time.
Copies of the ACCC's final report and draft record-keeping rule can be obtained from the ACCC website(see below).
In March 2003, the ACCC announced it would conduct a wide-ranging review of the regulation of the mobile services industry.
One aspect of this inquiry concerns whether the ACCC should declare a domestic inter-carrier roaming service.
The domestic inter-carrier roaming service
Mobile domestic inter carrier roaming is a service which enables mobile subscribers to use their mobile phones to make and receive calls by means of another network in Australia (the "visited" network) when outside the coverage of the network to which they subscribe (the "home" network). The service is a wholesale service supplied by the visited network operator to the home network operator, which is then re supplied by the home network operator to its subscribers.
At present, domestic inter-carrier roaming is provided by some operators of both code division multiple access (CDMA) and global system for mobiles (GSM) mobile networks. CDMA and GSM are two alternative network technologies used to provide second generation digital mobile services. Whilst roaming is possible between networks of the same second generation mobile technology, subscribers of CDMA services cannot roam onto GSM networks (and vice-versa).
What is declaration?
Under the Trade Practices Act 1974, declaration of a service creates a requirement for carriers supplying the service (access providers) to provide the service upon request to other service providers (access seekers). The access provider must take all reasonable steps to ensure the technical and operational quality of the service is equivalent to that which the access provider provides itself.
Thus declaration ensures access seekers have access to the inputs they need to supply competitive communications services to consumers. Access must be provided in accordance with the standard access obligations in the Act. Further terms and conditions can be agreed by commercial agreement. If agreement cannot be reached on the terms of access, the ACCC can arbitrate the dispute.
The ACCC's record keeping rule powers
Under s. 151BU of the Trade Practices Act, the ACCC has the power to make a record keeping rule (RKR) by written instrument and require that carriers and carriage service providers comply with it. The rules may specify what records are kept, how reports are prepared and when these reports are provided to the ACCC. The ACCC cannot require the keeping of records unless they contain information relevant to its responsibilities. These responsibilities include the operation of Parts XIB and XIC of the Act.
Public consultation on this issue
On 24 April 2003, the ACCC issued a discussion paper to inform its review of mobile services. It received eight submissions from interested parties relating to the domestic roaming service. The ACCC also held two public forums in Melbourne and Sydney in August and September 2003 as part of the broader Mobile Services Review, and conducted further market inquiries in relation to this matter during 2004.
The ACCC issued a draft decision in relation to the domestic inter-carrier roaming service in October 2004. It received four submissions in response.
As part of its Mobile Services Review, the ACCC also issued final decisions in relation to the Mobile Terminating Access Service and the Mobile Originating Access Service on 30 June 2004.
