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You can find the current article at its original source at http://www.theguardian.com/world/2014/jun/18/cheaper-text-messages-likely-as-consumer-watchdog-targets-telcos
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| Version 0 | Version 1 |
|---|---|
| Cheaper text messages likely as consumer watchdog targets telcos | Cheaper text messages likely as consumer watchdog targets telcos |
| (2 months later) | |
| Sending a text is likely to cost less after the Australian consumer watchdog announced it would start regulating the fees telcos charge each other for sending SMS messages across networks. | Sending a text is likely to cost less after the Australian consumer watchdog announced it would start regulating the fees telcos charge each other for sending SMS messages across networks. |
| The decision by the Australian Competition and Consumer Commission (ACCC) came at the end of a year-long inquiry into “mobile termination”, which refers to a phone network such as Telstra connecting a call or text message made to one of its customers from a phone on another network. | The decision by the Australian Competition and Consumer Commission (ACCC) came at the end of a year-long inquiry into “mobile termination”, which refers to a phone network such as Telstra connecting a call or text message made to one of its customers from a phone on another network. |
| Australia’s three major networks – Telstra, Optus and Vodafone – charge each other a fee for this service, which is passed on to the customer. | Australia’s three major networks – Telstra, Optus and Vodafone – charge each other a fee for this service, which is passed on to the customer. |
| Fees for making voice calls across networks have been regulated since 1997, but until now the price for sending texts was set by the telcos. | Fees for making voice calls across networks have been regulated since 1997, but until now the price for sending texts was set by the telcos. |
| “The ACCC is concerned that mobile network operators are able to keep wholesale SMS termination rates significantly above cost,” the watchdog’s commissioner, Cristina Cifuentes, said, noting the termination fees had not changed in a decade. | “The ACCC is concerned that mobile network operators are able to keep wholesale SMS termination rates significantly above cost,” the watchdog’s commissioner, Cristina Cifuentes, said, noting the termination fees had not changed in a decade. |
| “The ACCC considers that this is having a negative impact on competition in wholesale and retail markets. In particular, we are concerned that these rates are affecting SMS prices available to low-income consumers,” Cifuentes said. | “The ACCC considers that this is having a negative impact on competition in wholesale and retail markets. In particular, we are concerned that these rates are affecting SMS prices available to low-income consumers,” Cifuentes said. |
| A submission to the inquiry by Macquarie Telecom said it cost the major networks about 1c to send 100 text messages. | |
| But Narelle Clark from the consumer group Australian Communications Consumer Action Network told the inquiry that some telcos were charging customers about 15c a text. | But Narelle Clark from the consumer group Australian Communications Consumer Action Network told the inquiry that some telcos were charging customers about 15c a text. |
| "This level of profit margin is astronomical,” Clark said in February. | "This level of profit margin is astronomical,” Clark said in February. |
| Some Telstra deals charge 29c per text while some Vodafone packages charge as much as 30c for a single message. | Some Telstra deals charge 29c per text while some Vodafone packages charge as much as 30c for a single message. |
| Australia’s major networks were split on the decision with Optus saying it would “promote competition and that benefits consumers”. | Australia’s major networks were split on the decision with Optus saying it would “promote competition and that benefits consumers”. |
| “Optus welcomes the decision of the ACCC and looks forward to substantially lower termination rates, which should increase retail price flexibility for mobile providers,” a spokeswoman said. | “Optus welcomes the decision of the ACCC and looks forward to substantially lower termination rates, which should increase retail price flexibility for mobile providers,” a spokeswoman said. |
| Telstra said there was “little benefit” in regulating cross-network texts “as our customers already have access to unlimited SMS on our most popular plans” and the rise of smartphones and social media had provided free alternatives to texting. | Telstra said there was “little benefit” in regulating cross-network texts “as our customers already have access to unlimited SMS on our most popular plans” and the rise of smartphones and social media had provided free alternatives to texting. |
| But research from ACCAN and Anglicare Victoria published last October showed that high-cost SMS deals were more likely to slug poor or older Australians. | But research from ACCAN and Anglicare Victoria published last October showed that high-cost SMS deals were more likely to slug poor or older Australians. |
| "Many of these consumers don't own a smartphone so they're not able to take advantage of relatively cheap data messaging services like Whatsapp or Viber, leaving them stuck with these unreasonable prices," Clark said. | "Many of these consumers don't own a smartphone so they're not able to take advantage of relatively cheap data messaging services like Whatsapp or Viber, leaving them stuck with these unreasonable prices," Clark said. |