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Category: Telecommunications / Mobile Phones / Community and Society / Regional / Information and Communication

Lack of regional phone coverage prompts ACCC investigation

Monday, 5 Sep 2016 12:08:40 | Lucy Barbour

The inquiry was prompted by an increasing number of complaints from rural residents. (ABC News: Nic MacBean)

The competition watchdog is investigating whether or not telecommunications companies should be forced to provide mobile phone roaming services for all Australians.

The Australian Competition and Consumer Commission (ACCC) said the inquiry was prompted by an increasing number of complaints from rural residents who cannot get coverage outside regional centres unless they are Telstra customers.

ACCC chairman Rod Sims said Telstra currently owned the majority of mobile phone towers across regional Australia, and that declaring a national roaming service would create more competition among telcos operating there.

"I guess the issue we have to weigh up is that Telstra, particularly, would say that the main reason they invest in those facilities is to get an advantage over their competitors," he said.

"And so, if we allow roaming, they will not have the same incentive to invest and therefore regional communities would get a lesser quality service."

Telstra has been a major contributor to the Federal Government's black spot program, which aims to build or upgrade 499 phone towers or base stations.

But domestic roaming would mean that telcos such as Optus and Vodafone could use Telstra towers to give their customers better reception, and vice versa.

"We looked at it in 1998 and 2005, so 11 years ago now, and we found that there were commercial roaming agreements being negotiated," Mr Sims said.

"That is not happening as much now so that is a change."

Vital for consumers to be well-informed, says ACCC chairman Photo: ACCC Chairman Rod Sims warns the proposed solution may result in lesser quality service. (ABC News)

In the last decade, Telstra, Vodafone and Optus have increased their presence in rural areas but Nationals MP Mark Coulton said rural phone customers are not benefitting as much as they could and he has welcomed the ACCC inquiry.

"Quite frankly, I don't want to be seen as someone bashing Telstra. Where they are, which is 98 per cent of the country, they provide a wonderful service," he said.

"But I am looking at ways to fill in the black spots and the lack of coverage over my electorate, which covers half of New South Wales.

"For instance, in the village of Baradine and surrounding areas, there is quite a large Optus tower there and those people will become Optus customers because they will get a good service. Their problem is that when they go into another area, as they drive into an adjacent town, then their Optus phone then will struggle to get the coverage."

The inquiry comes after the National Audit Office (ANAO) released a report questioning the effectiveness and impact of the Federal Government's mobile black spot program.

The report found the Federal Government lacked appropriate method in its rollout of the $385 million first round of the program and that it funded "areas that already had existing coverage".

Regional Communications Minister Senator Fiona Nash has brushed off the criticism and said the department has already addressed most of the issues outlined in the report.

AustraliaPlus


 

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