ACCC issues two telco sector reports into competition

Infrastructure investment increases 9.5 percent

The Australian Competition and Consumer Commission (ACCC) today issued two long awaited reports covering competition in the telecommunications sector and the Trade Practices Act.

ACCC chairman, Graeme Samuel, said the reports show that overall prices paid by consumers for telco services fell 6.5 percent during 2005/06 while investment in infrastructure increased 9.5 percent to $6.9 billion.

"These reports show that consumers are the winners in terms of lower prices and better quality services when there is competitive pressure between providers," he said.

The report on competitive safeguards showed that providers invested heavily in both 3G mobile networks and broadband infrastructure.

"The benefit of competitive investment was demonstrated with a number of carriers launching higher-speed ADSL2 services," Samuel said adding that competition is still underpinned by regulation.

He noted that investment by competing carriers remains at risk from prospective fibre-to-the-node network upgrades.

Both reports are available at

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