The Australian Competition and Consumer Commission today credited the increase in competition in the Australia telecommunication market with producing major price reductions to consumers.
This follows tabling in Parliament of the ACCC's annual report on telecommunications prices by the Minister for Communications, Information Technology and the Arts, Senator Richard Alston.
The report tracks changes in prices for fixed line and mobile services between 1996-97 and 1999-2000. It covers services supplied by the telecommunications carriers Telstra, Cable and Wireless Optus, Vodafone, AAPT and One.Tel.
"The report shows that the majority of telecommunication services have fallen in price over the past several years and that a broad range of consumers have benefited from price reductions", ACCC Chairman, Professor Allan Fels, said today. "Residential and business consumers of fixed line services along with consumers of mobile telephony have all been beneficiaries of price falls. In the business market, small businesses have experienced some of the largest annual price reductions.
"The price reductions are attributable to technological change and the growth in competition in the Australian telecommunications market over the past several years both on a facilities and an access basis".
The report shows that the average price of telecommunications purchased by Australian consumers fell in real terms by 17.5 per cent between 1996-97 and 1999-2000.
"It is particularly encouraging that regional areas have not missed out on the price reductions. In areas outside of capital cities there was a 22.4 per cent real reduction in the price of fixed line services between 1996-97 and 1999-2000", Professor Fels said.
The ACCC's report shows:
- a 53 per cent reduction in the price of international calls between 1996-97 and 1999-2000
- a 23.5 per cent decrease in the price of national long distance calls between 1996-97 and 1999-2000
- a decease in the costs of mobile telephony by 18.9 per cent between 1996-97 and 1999-2000
- a decrease of 13 per cent in the price of local calls between 1996-97 and 1999-2000
- an increase of 9.5 per cent in the price of basic access during 1999-2000 following little change in previous years.
"The increase in the price of basic access needs to be considered in the context of the fall in fixed line call prices which has led to an overall reduction in the price of fixed line services by 17 per cent between 1996-97 and 1999-2000", Professor Fels said.
Changes in the prices paid for telecommunications services in Australia 1996-97 to 1999-2000 and will be available from ACCC offices, by calling 1300 302 502.