THE Wimmera’s mobile phone networks will not be opening up their services to customers from rival companies after a decision by the consumer watchdog.
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The Australian Competition and Consumer Commission handed down its draft decision on Friday from an inquiry into ‘domestic roaming’.
Under the roaming proposal, mobile customers could connect to a rival network for a fee.
The Wimmera, like many regions, has areas where there is only a signal from one of the major telecommunications companies like Telstra or Optus.
Consumer commission chairman Rod Sims said there was insufficient evidence to suggest that rural mobile customers would be better off under the proposal.
“We are extremely conscious of the fact that in regional, rural and remote areas, mobile coverage and choice of service provider are vital issues,” Mr Sims said.
“However, the effect declaration would have on competition in regional, rural and remote areas is uncertain. While declaration may deliver choice for more consumers, declaration has the potential to make some consumers worse off.
“Currently, regional consumers benefit to some extent from price competition in metropolitan areas because operators price their services consistently across Australia, despite the higher costs in servicing regional areas. They also benefit from competition between operators on network investment.”
Victorian Farmers Federation president and Murra Warra farmer David Jochinke said the organisation had hoped the decision would go the other way.
“Obviously, we want to see coverage and competition for rural areas,” he said.
“The government’s intervention through the Mobile Black Spot Program has worked, we wouldn’t have seen the number of towers we now have if it wasn’t for the program.
“What’s frustrating is where you see new towers from rival telcos built side-by-side when they could be much further apart and cover much more of the state.”
Mr Jochinke said farmers were being locked out of using towers because of their choice of provider.
“Where the angst comes from is when a farmer can see a mobile phone tower but can’t access it,” he said.
“If the companies would share their networks, then we would be able to get much wider coverage for the same investment of resources.”
Mr Jochinke said continued funding of the Mobile Black Spot Program was a top three priority for what the federation wanted to see in the federal budget, along with inland rail and continued $20,000 write-downs for farm equipment and fodder storage.
Member for Mallee Andrew Broad has previously lobbied Telstra and Optus to free up their networks.
Mr Broad told the commission it was ludicrous that some farmers had to carry multiple phone from rival networks to ensure they were contactable while on their own properties.
Mr Broad has been contacted for comment.
Telstra area general manager Steve Tinker has previously spoken out against domestic data roaming.
Mr Tinker said opening up each other’s networks, known as regulated roaming, would harm rural mobile customers in the long run.
“Strong competition is what drives companies like Telstra to invest in building the best mobile network,” Mr Tinker said.
Telstra chief executive Andrew Penn said company welcomed the commission’s draft decision.
“This is the right decision for the people, businesses and communities of regional Australia because it ensures the industry still has the incentives to invest,” Mr Penn said.
“Dozens of community groups, business leaders, local councils and politicians from across the country made submissions to the commission.
“The overwhelming call from regional Australia was that their top priority was encouraging telecommunications investment to improve and extend mobile coverage.
“Last year Telstra committed to keep investing to improve and expand our mobile network in regional, rural and remote areas. Through our own direct investment, as well as co-investment, we expect to see up to $1 billion of investment flow to small towns and regional centres across the country over the next five years.”