ACCC declares mobile market uncompetitive – Illinoisnewstoday.com



Australia’s competitive watchdog has declared less competition in the mobile market, Paul Budde It suggests that this may not be the case.

The reason I’m asking about the competitiveness of the mobile market is the Australian Competition & Consumer Commission (ACCC). Recently discussed Because the court allowed merger Between Vodafone And TPG, The competitiveness of the market is declining. The ACCC opposed the merger but lost the proceedings.

It’s not easy to answer this question easily. At the time this issue was being discussed, my claim was that Vodafone was too weak to remain a viable competitor in the long run. At the same time, TPG has not invested enough in mobile infrastructure, Telstra And Optus.. They miscalculated the amount of money needed to reach such a position and did not buy enough spectrum to achieve it anyway.After all, they are government Huawei ban Due to the fact that their business model was no longer viable.

I reluctantly agreed that the merger of Vodafone and TPG was the only realistic step forward. It’s better to have three good competitors than four players, especially Telstra, who are too weak to actually challenge.

Also, internationally, if there are four players, the fourth player is generally having trouble generating enough market share to remain an economically viable player in the market. I understand. Therefore, as in Australia, similar mergers are taking place elsewhere.

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I believe the Vodafone / TPG merger has not yet fully secured the long-term future of the mobile market. Optus was unable to expand its mobile customer base beyond the 20-25% market share it already had about 20 years ago.

Still, I think the Australian mobile market is fiercely competitive. Is it better? Yes, yes, but to be honest, we have a dynamic market. Market pressure continues to ensure that Australian users have affordable prices and products.

Mobile virtual network operator (MVNO) Although it has a relatively small market share, it also plays an important role in the market. Among them, they have some low-cost options in the prepaid market. Customers who need or are interested in such products only need to do a little research to find out what is the best option for them. It’s also easier to buy these cheaper products, as they are ready-made products in many supermarkets and shops across the country.

My hobby is history, so I would like to take this opportunity to look back on what happened in the past in this market.

we had Hutchison Acting in this market as the fourth player in the late 1990s, he made a strategic mistake betting on technology that went nowhere.First, North America CDMA standard (Because it is different from the European GSM standard, which has become the main technology). They also considered building a separate mobile data network based on the GPRS standard (general line radio service).

In the end, their only option was to merge with Vodafone, a mobile operator that was already struggling in the country at the time. Their main mistake is to sell only access to the unique new 3G network they were building when they entered the market, which of course takes time to complete and therefore customers It took much longer to build the foundation. Meanwhile, Optus was also building 3G networks, but decided to resell Telstra 2G services as well, and when sufficient infrastructure became available, these customers would be 3G networks. I was able to successfully transfer to the service.

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At this time we had again One Telsaga.. They were very successful resellers and, supported by the Murdoch and Packer families, became the fourth largest telecommunications player on the market. However, when he began to become an infrastructure player and decided to build his own mobile network, the owner panicked and OneTel broke down brilliantly.

next, AAPT We entered the mobile market in 2000. Shortly thereafter, Telecom New Zealand As a result, the deployment of mobile networks was discontinued because the business models did not stack up.

What’s still fresh in my heart Vodafail Disaster after the arrival of the smartphone. The company could not predict a significant increase in network capacity required for the mobile data usage boom. They struggled for two years before fully recovering, during which time they lost nearly two million customers.

With the advent of 5G, this also requires a huge investment, and size is important if you want to remain a leader in this market in order to generate that money. In the end, I agree with the court that the merger is the best result and you can find a competitive offer when you look at what is offered in the market.

If the market needs to change, we will return to the problem we have dealt with many times. MVNO wholesale regulations need to be improved, but for the past two decades the ACCC has been uninterested in addressing that issue.

While I’m complaining, I have another problem. I don’t understand why we can’t regulate the provision of roaming services between operators in Australia’s rural and rural commercially impractical areas. The government is spending hundreds of millions of dollars expanding mobile signals in these areas. This should be done based on roaming requirements. But again, I’ve been discussing this for over 20 years.

Paul Budde Independent Australian columnist and Paul Budde Consulting, An independent telecommunications research and consultancy organization. Follow Paul on Twitter @PaulBudde..

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