20 November 2006
Australian economy $15.2 billion larger thanks to telco reforms
The Australian economy is $15.2 billion larger due to Australian Government reforms to liberalise the telecommunications industry, according to an Australian Communications and Media Authority (ACMA) report presented to Parliament today.
“Since the Howard Government deregulated the telecommunications market in 1997, the Australian economy has grown by $15.2 billion, with flow-on effects worth $1.9 billion in terms of household consumption in 2005-06 alone,” Senator Coonan said.
“More than 17,550 jobs in the telecommunications sector were created in the last financial year alone and new investment of $660 million was also generated. The strong and sustainable economic benefits of telecommunications reform are clear but they are only one part of the communications story in Australia.”
More than 80 per cent of consumers have a mobile phone and there are now 19.7 million mobile phones in Australia. There are more than 5.9 million Internet subscribers and the number of broadband services increased by 82 per cent in 2005–06. Some 85 per cent of households now have access to all free-to-air terrestrial digital television services in their area and digital television receivers are in around 20 per cent of residences.
The number of mobile services grew by 1.3 million in 2005–06, and ACMA recorded a
30 per cent increase in mobile call minutes for the year while the average call costs for mobile phones decreased by 13 per cent. The number of fixed-line services in Australia declined by 1.8 per cent, with 50 per cent of adults aged between 25-35 years reporting that they use their mobile more often than their home phone. 3G mobiles are now used by eight per cent of Australian consumers.
“Broadband take-up continues to boom, with a third of all households now connected to fast Internet. Data downloads increased by 99 per cent during the year, with the average ADSL user downloading more than 18 gigabytes of data in 2005–06,” Senator Coonan said.
In the broadcasting sector, television advertising revenue grew by 2.4 per cent to
$3.4 billion, while radio advertising revenue increased by 6.6 per cent to $897 million. The report also notes that the Government’s introduction of the Spam Act 2003 and successful prosecutions by ACMA have seen Australia drop from 10th to 25th in the ranking of source countries for Internet spam.
“I am extremely pleased by the outcomes contained in this report, many of which are the direct result of work by the Government to liberalise the telecommunications sector and encourage enterprise, investment, competition and innovation,” Senator Coonan said.
“The increasing use of advanced digital technologies, mobile and broadband services in particular, shows that Australians are not about to be left behind by the communications revolution.
“The figures contained in this latest report put paid to Labor Party claims that a move towards a deregulated market would bring negative outcomes for Australians.
“Clearly deregulation of the market and a steadfast commitment to competition in the telecommunications sector has delivered results.
“For this prosperity to continue, further targeted Government investment can and will be made through the $1.1 billion Connect Australia package and the $2 billion Communications Fund to ensure all Australians get access to faster broadband and better mobile phone services and high speed networks are delivered for our schools , hospitals and universities.
“Under Labor, the $2 billion Communications Fund would be drained of all its money and the $878 million Broadband Connect program abandoned to build an uncosted and untested network.
“Labor should abandon its ludicrous stab in the dark communications policy and back the Government’s moves to deliver improved telecommunications services for all Australians both now and into the future.”