Telecommunications prices and price changes

International benchmarking report

This report was released on 21 December 1999. The report, a series of international benchmarking studies conducted by the Productivity Commission, compares Australian telecommunications prices, price changes and regulatory arrangements with those in nine other OECD countries, updating a similar study, International Benchmarking of Australian Telecommunications Services, released in March 1999.

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Contents

There have been relatively large price reductions for most relecommunications services, according to a report released today by the Productivity Commission.

The report - International Benchmarking of Telecommunications Prices and Price Changes - compares Australian telecommunications prices, price changes, and regulatory arrangements with those in nine other OECD countries, updating a similar study released last March.

The report found that Australian residential telephone prices fell about 8 per cent between February 1998 and June 1999. Prices for many businesses fell at double this rate. However, price reductions for mobile services have been smaller than in other countries.

Australia's telecommunications prices in June 1999 remained about average among the better performing OECD countries, although the best performers' prices were still generally 20 to 45 per cent lower than in Australia.

While all the benchmarked countries have opened their telecommunication markets to competition, regulatory arrangements vary among countries, with implications for the extent of competition and the level of prices. In Australia, the scope of access service declarations has been expanded by the ACCC, and this is expected to stimulate further competition and price reductions.

The report is the latest in a series of international benchmarking studies conducted by the Productivity Commission.

Further information

02 6240 3330

Preliminaries
Cover, Copyright, Foreword, Contents, Abbreviations, Glossary, Overview

1 Introduction
1.1 Objective
1.2 Approach
1.3 Study scope
1.4 Data collection
1.5 Consultation
1.6 Structure of the report

2 Developments in telecommunications markets
2.1 Local and long-distance PSTN services
2.2 ISDN services
2.3 Mobile services
2.4 Data services

3 Residential price comparisons
3.1 Methodology
3.2 PSTN services
3.3 ISDN services
3.4 Mobile services
3.5 In summary

4 Business price comparisons
4.1 Methodology
4.2 Small businesses
4.3 Medium-sized businesses — dial-up services
4.4 Medium-sized businesses — data services
4.5 In summary

5 Regulation and competitive conditions
5.1 Regulatory arrangements
5.2 Market structure

A Participants

B Methodological issues in benchmarking prices
B.1 Demand patterns
B.2 Currency conversion
B.3 Prices
B.4 Taxes
B.5 Measurement of price changes
B.6 Interpretation of price differences and price changes

C Price plans used for the price comparisons

D Regulatory arrangements — June 1999v

E Regulatory and institutional arrangements — Korea, Malaysia and Singapore
E.1 Korea
E.2 Malaysia
E.3 Singapore