ACCC seeks comments on domestic mobile roaming

The ACCC has issued a discussion paper as part of its inquiry into requiring mobile operators to provide wholesale access to their networks in regional areas.

The ACCC is investigating whether to declare a wholesale domestic mobile roaming service, which would allow consumers to access mobile service over another operator’s network when outside the coverage area of their service provider.

Investigations are focused on whether declaring a service — which would likely involve setting default price terms if two companies cannot reach an agreement — would improve or impede competition.

The discussion paper notes that stakeholders including Vodafone Hutchison Australia and the Victorian Farmers’ Federation have argued that declaration would promote retail competition in regional areas by giving consumers a greater choice of provider.

But Telstra and Optus have argued that mobile network coverage is a key component of competition between the market’s three mobile network operators, so declaring a roaming service would be detrimental to market competition and discourage investment in remote areas.

Mobile operators are already required to provide access to towers, tower sites and associated facilities so operators can install their own equipment. But operators must still provide their own radio access network and spectrum.

Declaring a mobile roaming service would instead require operators to provide access to specified transmission services.

The discussion paper also focuses on whether there are barriers to extending mobile networks to regional Australia, the extent and nature of recent investments in mobile networks and the effect a declaration might have on operators’ incentive to invest in extending their networks.

The ACCC has investigated whether to declare a mobile roaming service twice before — in 1998 and 2005. Both times, the regulator decided that regulatory intervention was not necessary to achieve the benefits anticipated from a declared service.

“Mobile coverage and choice of service provider are important issues for Australians, particularly those living in regional, rural and remote areas. This inquiry will explore the extent to which domestic mobile roaming would promote competition among providers and its effect on investment in mobile infrastructure,” ACCC Chairman Rod Sims said.

“This inquiry provides an opportunity to reconsider this issue considering the present state of the market, the development of mobile networks since the last inquiry over 10 years ago, and current and future consumer needs for connectivity.”

Image courtesy of Jeff Turner under CC