ACCC telecommunications reports 2007–08

Under Part XIB, Division 11, s. 151CL(1) of the Trade Practices Act 1974, the Australian Competition and Consumer Commission (ACCC) is required to provide the Minister for Broadband, Communications and the Digital Economy with an annual report on competitive safeguards within the Australian telecommunications industry. This report (known as the Division 11 report), covering the financial year 2007–08 and ongoing actions immediately afterwards, is provided in the attachment below.

During 2007–08 the ACCC observed continued investment, innovation and price competition in the telecommunications sector. However, the competitive markets anticipated in 1997 do not appear to be emerging. The major downstream services continue to exhibit high levels of concentration and regulatory mechanisms are still heavily relied upon for promoting and maintaining competitive outcomes. The levels of consumer complaints about the industry also reached new heights in 2007–08.

Division 12 of Part XIB, s. 151CM (1) of the Act requires the ACCC to report each year to the Minister for Broadband, Communications and the Digital Economy on prices paid by Australian consumers for telecommunications services. This report (known as the Division 12 report) for the 2007–08 financial year is also provided in the attachment below.

The Division 12 report monitors prices consumers pay for public switched telephone network services and mobile telephony services. For PSTN services, it analyses prices paid by residential and business consumers for basic access service (or line rental) and for local, national long-distance, international and fixed-to-mobile calls. For mobile telephony services, this report covers prices paid by consumers for services on the global system for mobiles, or GSM, and third generation, or 3G, networks.

During 2007–08 service prices declined universally. Fixed-line service prices fell by 5.5 per cent, mobile voice services by 5.4 per cent and internet services by 6.2 per cent.

The ACCC issued the telecommunications reports 2007–08 to the minister on 3 April 2009.

The reports were tabled in the Australian Parliament on 16 June 2009 and became available on the ACCC website later that day.