Sims to study telecoms sector Australian Competition & Consumer...

Sims to study telecoms sector

Australian Competition & Consumer Commission boss Rod Sims is about to embark on a forensic fact-finding mission on the overall state of the telecommunication sector, with the National Broadband Network and 5G technology the major topics of discussion.

With the rollout of the NBN almost half complete, the high wholesale access prices charged by the company continue to be a bone of contention for the telcos. It’s also seen as a key contributor to some premises receiving poor retail broadband services despite paying higher prices.

NBN Co and the retail service providers are purportedly working together to streamline service delivery but with public discontent on the rise, unravelling the knot on pricing is a key priority for the ACCC. However, Mr Sims said the scope of the market stud would extend beyond the NBN.

“This is more than just a health check and there’s a lot going on in the sector, which is in a state of flux and uncertainty,” Mr Sims told The Australian.
“There are two big things going on: NBN is one of them and technology is the other one.”
According to Mr Sims, the influx of new technology in the fixed broadband and mobile markets is set to have an impact on efficiency and the level of competition over the next three to five years.
“With or without the NBN, we still need to question the interplay between mobile and fixed in the 5G world, we need to think about the Internet of Things and what its spectrum needs will be, and whether we have the right investment for the growth in data,” he said.

The spectre of the NBN sparked a cycle of consolidation that has seen the likes of iiNet and M2 Group absorbed into bigger entities. With four big players (Telstra, Optus, TPG Telecom and Vocus) sitting at the top, there are concerns that smaller retail service providers may not have the scale to provide a competitive service.

However, Mr Sims pointed to Vodafone Australia’s NBN ambitions and TPG Telecom’s entry in the mobile market as positive signs.

With a number of moving parts in play, the ACCC will use the latest exercise to test whether its current regulatory focus is appropriate to meet the requirements of the changing communications landscape.

“With the NBN now a reality we need to ensure that everyone is working together to deliver the best possible outcome,” Mr Sims said.
“We want to hear all the views in the market and we want to hear them stated as boldly as possible.”

The regulator is putting together a national broadband speed monitoring scheme to get a better idea of the broadband choke points for households. However, Mr Sims played down the role the ACCC could play in forcing NBN Co to publicly disclose the detailed wholesale speed information in its possession.
Industry players have said that the information will deliver clarity to consumers on what speeds they could expect in their areas before being connected. But Mr Sims said that the data may not be as useful as it was made out to be.

“NBN Co’s data is all about measuring speed at the access level. It doesn’t measure what the box the RSP is putting on the NBN provides, it doesn’t measure the contention from the ISP.
“The data is important to us but there’s no point putting that data out to the public,” he said.
On the mobile front, the ACCC is currently embroiled in a legal dispute with Vodafone on the issue of domestic roaming, with the matter scheduled for a full hearing in court at the end of September.

The most important tidbit I took away:

The ACCC shot down Vodafone’s attempt to get the regulator to open access to Telstra’s regional network in May.
“You’ve got to have a reason to regulate and I think I did annoy Vodafone by saying in the draft decision that we didn’t have enough evidence,” Mr Sims said. “There’s some validity in Vodafone saying that there’s a vicious cycle in play that entrenches Telstra’s monopoly … but it doesn’t determine the debate.”