MOBILE roaming, where telcos pay each other to share network in areas serviced by one provider, is not coming to Australia any time soon.
In its third inquiry into roaming, the Australian Competition and Consumer Commission (ACCC) has decided not to recommend mobile roaming be mandated in Australia.
Patchy mobile coverage, and slow upload and download speeds, is a common issue in many regional areas across Australia.
“There is insufficient evidence to suggest that declaration of a mobile roaming service in regional and rural areas would further lower prices or improve services, given the higher costs in servicing these areas,” ACCC chairman Rod Sims said.
Telstra, which owns the largest rural and regional mobile network, vehemently opposed the introduction of roaming.
Competing Telcos, Vodafone and TPG, have strong urban networks, but smaller regional presence and both pushed hard for roaming to be introduced.
The ACCC’s report said Telstra’s extensive network, which began when it was a public company, gave it a clear advantage in competing for consumers who value or require regional coverage.
Low population density and the high costs of extending a mobile network in the bush means Telstra is likely to retain a coverage advantage in the future.
The ACCC acknowledged consumers have limited choice of mobile provider in regional and remote areas, for many Telstra is the only viable network provider.
“However, we find that these factors alone are not sufficient to justify declaration of a roaming service,” the report said.
Mr Sims said the ACCC was “extremely conscious” of the vital importance of coverage and choice of server in regional, rural and remote areas.
“However, the effect declaration (of roaming) would have on competition in regional, rural and remote areas is uncertain,” Mr Sims said.
“While declaration may deliver choice for more consumers, declaration has the potential to make some consumers worse off.”
Telstra argued its assets would be devalued if opened up for use by the competition, which it said would curb investment in network expansion.
Vodafone and TPG want a slice of Telstra’s networks to expand its regional market share. They said this would introduce competition and drive investment into network expansion.
Key to all telcos consideration is the urban market, which dwarfs the profits on offer in the bush. Telstra wants to maintain exclusive access to its rural mobile network, and the premium price it can charge rural residents and urban visitors with smart devices.
The ACCC said regional consumers benefit “to some extent” from price competition in metropolitan areas and found that retail prices were unlikely to fall under roaming.
The ACCC wants feedback on policy measures to improve mobile netowrks in the bush.
MORE TO COME
