The Australian Competition and Consumer Commission (ACCC) plans to conduct a market study of the country’s communications sector to examine a range of issues concerning competition and efficiency.

“Rapidly evolving technological developments, structural change within the sector, product innovation and changing consumer preferences are all contributing to the significant change in the way consumers communicate,” said ACCC chairman Rod Sims (pictured below).
Rod-Sims-high-res
He said the study will allow the ACCC to consider a wide range of interrelated issues that have been raised by the sector. “The study will examine the changing landscape and identify any issues preventing the use of innovation and investment to deliver the benefits of competition to consumers.”

Based on its preliminary discussions with stakeholders, ACCC said it will examine four specific areas: The changing structure of communications markets, particularly the transition to a fixed-line market in which NBN Co is the wholesale provider to retail service providers, and consolidation and market concentration within the retail sector; The growth in availability of over-the-top (OTT) services using the internet as a delivery platform; The exponential growth in the demand for bandwidth and data in recent years; and the increased use of mobile data by consumers and the increasing preference for mobile as a way to access the internet.

The study will consider how these and other changes affect competition, the efficient operation of markets and investment incentives. The study will examine options to address any issues identified, and it will also consider the potential to improve economic regulation where warranted, it said in a statement.

The ACCC will start the consultation with an issues paper and will release a draft of its findings for comment prior to completing the market study next year.