"Infrastructure competition is growing across the Australian telecommunications market, with some of the highest levels of new investment occurring in the sectors where competition is bolstered by regulation", Australian Competition and Consumer Commission Acting Chairman, Mr Sitesh Bhojani, said today.
This follows issuing of a report Telecommunication Infrastructures in Australia 2001 prepared for the ACCC by BIS Shrapnel. It is the first comprehensive survey of telecommunications infrastructure deployment since deregulation in 1997.
"To date the debate about the strength of facilities based competition has been framed largely by assertions", Mr Bhojani said. "This report puts many of those assertions to the test. "Contrary to claims frequently made by Telstra, one of the key messages of the report is that increased competition in the industry has been accompanied by greater investment in telecommunications infrastructure.
"Extensive new infrastructure has been installed in CBD areas of the capital cities and the major inter-capital transmission links. In addition, several new companies are focusing on the installation of local networks and transmission links in regional Australia using a range of technologies".
The report reveals that several carriers have deployed, or are deploying, fibre optic, xDSL, microwave and advanced broadband wireless (LMDS and MMDS) local access networks. It also reveals that carriers other than Telstra account for over 30 per cent of CBD buildings wired with fibre optic cable.
"Around the parts of Telstra's fixed network subject to access regulation, such as the local loop, both Telstra and other operators are investing billions of dollars in infrastructure. A total of 12 carriers, including Telstra, are investing in fixed broadband xDSL infrastructure, with planned investment totalling at least $1.9 billion between 2001 and 2003.
"In the mobiles market, competing carriers have made investments in current networks of around $8 billion, with further investments being committed to 3G networks. "The growing demand for telecommunications services has created many opportunities for new market participants and technologies to emerge".
Between 1997 and 2000 the number of households connected to the Internet increased from 500,000 to 2.7 million. Over the same period mobile subscribers grew from 5.2 million to 10.2 million. "Despite the growth of facilities competition, Telstra continues to be dominant in most market segments demanding a continuing role for the ACCC in ensuring competition is nurtured and sustained".