78/07
Wednesday 13th June 2007

Telecommunications Services more affordable for Australian consumers

The Minister for Communications, Information Technology and the Arts, Senator Helen Coonan, today welcomed the release of two reports by the Australian Competition and Consumer Commission (ACCC) on competitive safeguards and the decrease in prices paid for telecommunications services.

The ACCC report, Changes in the prices paid for telecommunications services in Australia 2005–06, states that the average overall price for telecommunication services fell by 6.5 per cent in 2005–06.

“For the second year in a row, prices for telecommunications services have fallen which is great new for consumers,” Senator Coonan said.

 “This is a direct result of the Government’s work in liberalising the telecommunications sector over the past 10 years.

“Since 1997 the overall average price for telecommunication services has fallen by a whopping 30.6 per cent – a clear sign that the current framework is delivering real benefits to consumers,” Senator Coonan said.

The ACCC report shows that the price of fixed telephone services fell by 6.6 per cent in 2005–06, and by 24.2 per cent since 1997. Average line rental prices have also fallen by 2.4 per cent, in 2005–06 after six years of increases. The prices paid for mobile services fell by 6.5 per cent in 2005–06.

The ACCC report, Telecommunications competitive safeguards for 2005–06, shows ongoing progress in the development of competition.

“There have been significant investments by numerous competing carriers in 3G mobile networks and in broadband-enabling DSLAMs installed in local telephone exchanges,” Senator Coonan said.

The total size of the communications industry has also continued to grow in 2005–06.

“Investment in communications grew from $6.3 billion in 2004–05 to $6.9 billion in 2005–06,” Senator Coonan said.

“The Australian Government remains committed to fostering the development of competition while ensuring that consumers are protected and able to get the benefits of a thriving, competitive environment.”

Copies of the ACCC’s report are available from its website at www.accc.gov.au