The ACCC proposes to retain voice call termination regulation, and to deregulate SMS termination.
Background: In Australia, the Mobile Terminating Access Service (MTAS), which includes mobile call and SMS termination, is regulated through a decision of the Competition and Consumer Commission (ACCC) of 2014. In August 2018, the ACCC launched a public inquiry examining whether the current regulation should be revoked, extended or varied after it expires on 30 June 2019.
The proposal: Today, the ACCC released its draft report on how it plans to update the regulation of wholesale mobile services. The authority recognises that the market is changing, but not to an extent such that regulation can be entirely lifted; SMS termination should no longer be regulated, whereas mobile call termination still warrants ex-ante regulation. OTT alternatives are now widely adopted as a substitute to SMS, and operators generally offer unlimited SMS in their mobile plans. The regulator considers that OTT voice services are not yet substitutes of the traditional voice call, due to quality standards and limitations in access to certain services.
Next steps: The draft is now under consultation until 31 May 2019. The ACCC has not proposed a price control for call termination, as that will be the subject of a separate inquiry for the Final Access Determination (FAD) once the service has been ‘declared’ again as regulated.
