Mobile terminating access service declaration review - 2013

The report of the ACCC's final decision for the MTAS declaration inquiry is provided.

MTAS Declaration inquiry and A2P SMS

In June 2014, the ACCC published a final decision in its MTAS declaration inquiry. In its final decision, the ACCC decided to declare mobile voice and SMS termination services for five years. In its final decision, the ACCC decided the declared SMS termination service should include the termination of A2P SMS services as this will promote the long-term interests of end-users (LTIE). A2P SMS are SMS messages originating on computer applications and generally sent from businesses to end-users, rather than SMS messages sent between individual end-users.

When making its final decision, the ACCC understanding was that A2P SMS messages and SMS messages sent between MNO’s both require access to the terminating MNO network. However, only MNOs purchase SMS termination from each other and A2P SMS providers don't purchase SMS termination from MNOs. A2P SMS providers generally purchase SMS messages in bulk from SMS aggregators, who purchase SMS messages in bulk from the MNOs, and the MNOs terminate A2P SMS messages on their networks on behalf of SMS aggregators.

Recent submissions to the MTAS access determination inquiry on A2P SMS

During the ACCC’s 2014-2015 MTAS final access determination inquiry, the ACCC received submissions and some queries about A2P SMS. In essence the issues raised by submitters were:

• Whether the draft final access determination price of 0.03 should apply to A2P SMS. More particularly whether A2P SMS should be priced differently to SMS messages sent between individual end-users, or not priced at all in the final access determination.
• Whether A2P providers could request the MTAS SMS final access determination pricing directly from MNOs.

The ACCC considers that the first issue is properly considered as part of the final access determination process. The second issue is not concerned with the terms and conditions of the service but concerns the scope of the declaration and who can seek access to the regulated service. The ACCC consulted on A2P SMS in the declaration inquiry. However, the declaration inquiry did not specifically state whether it was possible for access seekers other than the MNOs to purchase SMS termination services.

A2P SMS and the scope of MTAS declaration

Based on the information currently available, the ACCC considers that A2P SMS providers cannot currently access the MTAS.

The MTAS service description provides that the MTAS is an access service for the carriage of SMS services from a point of interconnection, or potential point of interconnection, to a B-party directly connected to the access provider’s digital mobile network.

The service description is technology neutral and does not require the access seeker’s network to be a digital mobile network. Consistent with the discussion in the declaration final decision, the ACCC understands that currently the only parties who have the capability to interconnect to the access provider’s network are MNOs.

The ACCC notes that wholesale A2P SMS services are provided to A2P SMS providers or aggregators as an end-to-end service rather than a standalone SMS termination service. This end-to-end service is made up of different components and SMS termination is only one part of this bundle of services. The regulated MTAS is therefore one component of an A2P SMS service. The other components of the end-to-end service are not subject to regulated pricing.

While the ACCC considers that it is currently the case that only MNOs have the capability to interconnect and get the MTAS, investing in building or acquiring the necessary infrastructure for access to the MTAS would be a matter for commercial decision.

Note: this explanatory note does not form part of the MTAS final access determination inquiry that was concluded in August 2015.