ACCC demands clarity from mobile providers

The ACCC has urged mobile providers to deliver greater transparency on their available products and services and how services different from each other.

The competition watchdog will ask mobile phone companies to provide clearer information about the quality and coverage of their networks in a push to give customers greater transparency.

Claims made by mobile companies about their networks "do not always reflect actual experience or the quality of the coverage offered", the Australian Competition and Consumer Commission says in a new report.

While the ACCC confirmed on Monday that it will not regulate prices for mobile roaming - the price network owners charge competitors for access - the watchdog said it will seek more transparency from the industry to improve competition.

An inquiry held by the ACCC during its consideration of the roaming issue found information currently offered to consumers about network coverage and quality "lacks transparency".

"A fundamental requirement for markets to work effectively is that consumers are informed about what products and services are available and how services different from each other in functionality and quality," the ACCC said.

Among issues identified, the ACCC said there was inadequate information showing differences between coverage provided by network-owning companies such as Telstra and Optus, and that offered by resellers using those companies' networks.

"The ACCC considers it would be difficult to compare technology and geographic coverage between providers with any degree of accuracy," the regulator said .

"This is particularly an issue for consumers who live or travel in regional and rural areas and need coverage over large areas."

The ACCC said on Monday it was not satisfied that declaring a wholesale domestic mobile roaming service would promote the long-term interests of users, and is more likely to distort competition in the mobiles market.

It will, however, ask industry to improve transparency around network quality and coverage and will also ask network providers to remove terms that restrict resellers from advertising their coverage footprint.

The ACCC said it will consider regulatory measures if action is not taken.


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Source: AAP


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