ACCC's final decision makes way for cheaper calls and text messages

The Australian Competition and Consumer Commission gave out its final verdict on mobile network charges, setting the price for the first time on charging practices of mobile and fixed-line network operators. Following the decision, users should expect a cut back on calls and texts.

ACCC Commissioner Cristina Cifuentes said in a statement: “The ACCC does not regulate retail charges, either for mobile calls or SMS, but expects these savings from these two decisions will be passed onto consumers either by way of lower charges or through improved call and SMS inclusions in retail plans." The organisation also said on Monday that its decision terminated costs on overseas charges. This means up to 1.7 cents reduction per minute, whereas SMS fee is at 0.03 cents per text. This is in line with previous complaints from consumer advocacy groups pointing out 90,000 percent mark-up on mobile users for just one text.

“The final regulated rates reflect the costs of terminating calls and SMS messages on Australian networks and is based on benchmarking the costs of these services against those in other countries,” added the commissioner. Furthermore, Cifuentes discussed that many mobile calls and SMS are relayed through 3G networks, which are better than 2G networks -- often used overseas. Also, Australian mobile networks can handle larger amount of data as opposed to networks overseas. Such factors resulted to the decision pushing to reduced costs.

Users should also expect a discount on terminating SMS messages and mobile calls through voice over 4G technology, including voice over long term evolution (VoLTE). ACCC claimed that should there be additional evidence supporting additional costs on terminating calls via Australian networks, the regulated rates will be reviewed once more.

The organisation will review the pending roll-out of 4G technology voice over. The service is expected to become available around the latter part of the year.

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