Data demand driving change in telco market

The Australian Competition and Consumer Commission (ACCC) has published its annual reports on prices and competition in the telecommunications sector.

Data downloads have increased 52 per cent for fixed broadband and 69 per cent for mobile, the ACCC has found.

Prices for internet, mobile and fixed-line services have fallen overall by 1.5 per cent. Within this fall, prices for internet services rose by 2.7 per cent on average, but the ACCC says this rise was accompanied by growing data allowances in many plans.

“While some consumers may be paying more, they are also getting much more in terms of data allowances,” ACCC Chairman Rod Sims said. “Consumer demand for streaming services, cloud services and, increasingly, content-rich websites and social-media applications, is driving this growth in data consumption.”

The reports also find that competition is proving resilient to industry consolidation and the transition to new cost structures.

“The ACCC also welcomes progress on pro-competitive structural reform,” Mr Sims said. “In addition, important steps have been taken to allow businesses access to Telstra’s legacy networks on more competitive terms.”

The ACCC Telecommunications Reports for 2015-16 are available on the ACCC website.

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