Australians are paying more for their broadband and mobile phone services than they were a year ago but are receiving faster NBN speeds and more data allowances in their mobile plans in return, the ACCC's 2020-21 Communications Market Report shows.
The report presents significant trends and developments in the markets for fixed broadband and mobile phone services, and on the state of competition in the telecommunications sector.
It shows that, generally, telecommunications networks met the demands of Australian households and businesses that relied heavily on their broadband services for work, education and entertainment during the second year of the COVID-19 pandemic.
However, consumers are now on average paying more for home broadband and mobile phones in exchange for higher speed services and additional data. For people who had an existing plan that already met their needs, it is unclear if the higher speed or extra data is sufficient trade-off for the higher price.
The report shows that in 2020-21 an average mobile consumer on a post-paid contract used only 11.8 GB of data per month, compared to a median data allowance of 35 GB per month.
Mobile consumers pay more for more
The mobile network operators,
"Reducing the expiry periods on prepaid plans from 35 and 42 days to 28 days is a price increase by stealth. Over a year, it means consumers are recharging more often, and therefore paying up to 25 per cent more for their mobile phone service," ACCC Commissioner
While average mobile prices rose,
"While consumers are getting more data allowance than before, it is unclear if they want or need it, as an average person isn't currently going anywhere near using the average mobile data allowance,"
The ACCC is concerned that since the merger of TPG and Vodafone in 2020, consumers are paying more for mobile phone plans. With the market now heavily concentrated with just three players, prices on many popular plans have risen as price competition is muted.
Broadband services more expensive but faster
The report reveals that the price of broadband services also increased in 2020-21. While many households trialled higher speed NBN plans at no extra cost through promotional offers, those who agreed to move their service onto a higher speed plan paid between six and eleven per cent more compared to 2019-20.
However, consumers did not pay more for entry level, lower speed NBN plans than they did in 2019-20.
"Higher speed NBN plans cost consumers about five to
"We encourage consumers to weigh up their internet needs and choose their broadband plan based on what they think represents better value, given the higher prices being charged for some plans."
"Retail service providers are required to have fact sheets available to assist consumers identify the broadband plans that are relevant to them,"
The total volume of data downloaded over broadband networks increased by nearly 20 per cent in 2020-21, and fixed broadband accounted for almost 90 per cent of total downloads.
An increasing number of Australians continue to go 'mobile only' for phone calls, or use over-the-top voice applications such as
The NBN requires new regulatory framework
The report also looks at the work of the ACCC,
"We are particularly interested in providing a stable, long-term regulatory framework that promotes a sustainable and competitive NBN market. This is essential as the NBN infrastructure will underlie much of the economic and social activities of Australians in the decades to come,"
"Strong regulatory settings will provide greater certainty for industry, enhanced choice for consumers and more opportunities for businesses."
The report also highlights the ACCC's enforcement activities in the telecommunications sector to help protect the interests of consumers. In 2021, a
"Australian businesses have a responsibility to comply with Australian Consumer Law and not to mislead or deceive consumers. There are very significant penalties for those that do,"
The ACCC's report is available at Communications Market Report 2020-21
Background
The ACCC is required to report annually on competition in the Australian telecommunications sector and price changes for telecommunications services in
The ACCC was required to provide this report to the Minister annually for tabling in
Use this form to make a general enquiry. Media enquiries: Media Team - 1300 138 917, media@accc.gov.au
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(C) 2021 M2 COMMUNICATIONS, source