Australian Broadband Regulation Reviewed
Main Article Content
Keywords
Broadband, Australia, Regulation, Market Power, Network Technology
Abstract
This article establishes the relationship between the condition of Australian broadband services and Australia’s history of broadband regulation. It briefly surveys the history of the industry in terms of government action and firms’ responses. It reviews research on the effects of regulation and industry concentration internationally, which indicates that the effects of widely deployed policies are often small or undetectable. The article uses these findings to build models of national broadband prices, penetration and quality. The models are verified using recent statistics from developed economies, confirming that outcomes are little affected by access regulation, and also not by market concentration. Penetration and quality are strongly affected by technology factors. The models and the regulatory history are used to explain the condition of Australian broadband services, and to extract lessons applicable to future policy development.
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References
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Distaso, W ; Lupi, P ; Manenti, F M. 2006. ‘Platform competition and broadband uptake: Theory and empirical evidence from the European union’, Information Economics and Policy, 18(1), 87-106. http://dx.doi.org/10.1016/j.infoecopol.2005.07.002
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Galperin, H; Ruzzier, C A. 2013. ‘Price elasticity of demand for broadband: Evidence from Latin America and the Caribbean’, Telecommunications Policy, 37(6), 429-438. doi:https://doi.org/10.1016/j.telpol.2012.06.007
Hair, J F et al. 2014. Multivariate Data Analysis (Seventh edition, Pearson New International Edition. ed.): Harlow Pearson Education Limited.
Haucap, J; Heimeshoff, U; Lange, M R J. 2016. ‘The impact of tariff diversity on broadband penetration—An empirical analysis’, Telecommunications Policy, 40(8), 743-754. http://dx.doi.org/10.1016/j.telpol.2015.09.005
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ACCC. 1997. ACCC issues its statement of deemed declared services for telecommunications access [Press release]. https://www.accc.gov.au/media-release/accc-issues-its-statement-of-deemed-declared-services-for-telecommunications-access
ACCC. 2002. ACCC declares line sharing [Press release]. https://www.accc.gov.au/media-release/accc-declares-line-sharing
ACCC. 2007a. Unconditioned Local Loop Service (ULLS) Final Pricing Principles. https://www.accc.gov.au/regulated-infrastructure/communications/fixed-line-services/unconditioned-local-loop-service-pricing-principles-2007/ulls-pricing-principles-2007.
ACCC. 2007b. Assessment of FANOC’s Special Access Undertaking in relation to the Broadband Access Service Draft Decision. https://www.accc.gov.au/system/files/ACCC%20draft%20decision%20on%20FANOC%20SAU%20-%20Dec%2007.pdf
ACCC. 2008a. Merger Guidelines, amended November 2017. Commonwealth of Australia https://www.accc.gov.au/system/files/Merger%20guidelines%20-%20Final.PDF.
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Anbarci, N; Katzman, B. 2015. ‘A New Industry Concentration Index’, Economic Papers: A journal of applied economics and policy, 34(4), 222-228. http://dx.doi.org/10.1111/1759-3441.12122
Australian Government Department of Communications and the Arts Panel of Experts. 2014. Independent cost-benefit analysis of broadband and review of regulation. https://www.communications.gov.au/sites/g/files/net301/f/Cost-Benefit_Analysis_-_FINAL_-_For_Publication.pdf
Baldwin, R; Cave, M; Lodge, M. 2011. Understanding Regulation: Theory, Strategy, and Practice. Oxford: Oxford University Press.
Beltrán, F. 2013. ‘Fibre-to-the-home, high-speed and national broadband plans: Tales from Down Under’, Telecommunications Policy, 38(8-9), 715-729. https://doi.org/10.1016/j.telpol.2013.08.006
Bouckaert, J; van Dijk, T; Verboven, F. 2010. ‘Access regulation, competition, and broadband penetration: An international study’, Telecommunications Policy, 34(11), 661-671. http://dx.doi.org/10.1016/j.telpol.2010.09.001
Briglauer, W. 2014. ‘The impact of regulation and competition on the adoption of fiber-based broadband services: recent evidence from the European union member states’, Journal of Regulatory Economics, 46(1), 51-79. http://dx.doi.org/10.1007/s11149-013-9237-4
Brown, N A. 1990. Telecommunications Reform Bill. http://kirra.austlii.edu.au/au/legis/cth/bill/trb1990293/
Brown, T. 2015. ‘South Korea: What happened to the broadband wonderland?’, NBN online, 5 February 2015. https://www.nbnco.com.au/blog/industry/south-korea-what-happened-to-the-broadband-wonderland.html
Burgess, P. 2006. Transcript from Telstra Fibre to the Node Briefing - Teleconference [Press release]. http://www.asx.com.au/asxpdf/20060807/pdf/3xwj5q0vmnlsm.pdf
Calzada, J; Martínez-Santos, F. 2014. ‘Broadband prices in the European Union: Competition and commercial strategies’, Information Economics and Policy, 27, 24-38. http://dx.doi.org/10.1016/j.infoecopol.2014.04.001
Canadian Radio-television and Telecommunications Commission. 2016. CRTC establishes fund to attain new high-speed Internet targets [Press release]. https://www.canada.ca/en/radio-television-telecommunications/news/2016/12/crtc-establishes-fund-attain-new-high-speed-Internet-targets.html
Cave, M. 2014. ‘The ladder of investment in Europe, in retrospect and prospect’, Telecommunications Policy, 38(8-9), 674-683. http://dx.doi.org/10.1016/j.telpol.2014.04.012
Central Intelligence Agency. 2016. The World Factbook. https://www.cia.gov/library/publications/the-world-factbook/
Cincera, M ; Estache, A; Dewulf, L. 2012. ‘On the (In) Effectiveness of Policies to Promote Broadband Diffusion in Europe (2003-2010): An Econometric Assessment’, IDEAS Working Paper Series from RePEc. https://ideas.repec.org/p/eca/wpaper/2013-128909.html
Correa, L; Crocioni, P. 2012. ‘Can evidence of pricing power help market power assessment? Broadband Internet in Ireland and the Netherlands’, Telecommunications Policy, 36(5), 419-433. http://dx.doi.org/10.1016/j.telpol.2011.11.014
Distaso, W ; Lupi, P ; Manenti, F M. 2006. ‘Platform competition and broadband uptake: Theory and empirical evidence from the European union’, Information Economics and Policy, 18(1), 87-106. http://dx.doi.org/10.1016/j.infoecopol.2005.07.002
Farnsworth, M. 2007. ‘Rudd Launches Broadband Policy; Abandons Opposition to Telstra Sale’, Australianpolitics.com. http://australianpolitics.com/2007/03/21/rudd-launches-broadband-policy.html
Fageda, X ; Rubio-Campillo, R; Termes-Rifé, M. 2014. ‘Determinants of broadband access: Is platform competition always the key variable to success?’ Information Economics and Policy, 26, 58-67. http://dx.doi.org/10.1016/j.infoecopol.2013.12.001
Galperin, H; Ruzzier, C A. 2013. ‘Price elasticity of demand for broadband: Evidence from Latin America and the Caribbean’, Telecommunications Policy, 37(6), 429-438. doi:https://doi.org/10.1016/j.telpol.2012.06.007
Hair, J F et al. 2014. Multivariate Data Analysis (Seventh edition, Pearson New International Edition. ed.): Harlow Pearson Education Limited.
Haucap, J; Heimeshoff, U; Lange, M R J. 2016. ‘The impact of tariff diversity on broadband penetration—An empirical analysis’, Telecommunications Policy, 40(8), 743-754. http://dx.doi.org/10.1016/j.telpol.2015.09.005
iiNet Pty Ltd; Agile Pty Ltd; Amcom Pty Ltd; Adam Internet Pty Ltd. 2007. Fixed Services Review - Further consultation on draft ULLS pricing principles. https://www.accc.gov.au/system/files/iiNet%2C%20Amcom%2C%20Agile%20and%20Adam.pdf
Jones, D S. 2015. ‘Infrastructure management in Singapore: privatization and government control’, Asian Education and Development Studies, 4(3), 299-311. http://dx.doi.org/10.1108/AEDS-12-2014-0064
Liikanen, E. 2000. ‘eEurope: An Information Society For All’ (Erkki Liikanen, Member of the Commission Enterprise and Information Society)(Transcript). Presidents & Prime Ministers, 9(2), 18. http://europa.eu/rapid/press-release_SPEECH-01-180_en.htm?locale=en
McGauchie, D. 2008. ‘National Broadband Network - Telstra Proposal’, Electronic Lodgement, 26 November 2008. http://www.asx.com.au/asxpdf/20081126/pdf/31dtyjbyvcgnvj.pdf
Minister for Communications and the Arts. 2017. Telecommunications (Regional Broadband Scheme) Charge Bill 2017. Canberra: House of Representatives https://www.aph.gov.au/Parliamentary_Business/Bills_LEGislation/Bills_Search_Results/Result?bId=r5916.
NBN. 2014. nbn annual report 2014. https://www.nbnco.com.au/content/dam/nbnco2/documents/nbnco-annual-report-2014.pdf
Nirmalathas, T A; Lodders, A. 2016. ‘How to choose the best NBN plan for your needs’, The Conversation, 16 December 2016. http://theconversation.com/how-to-choose-the-best-nbn-plan-for-your-needs-68424
OECD. 2013. ‘Broadband Networks and Open Access’. In OECD Digital Economy Papers. Paris: OECD Publishing. http://dx.doi.org/10.1787/5k49qgz7crmr-en
OECD. 2015. OECD Digital Economy Outlook 2015. http://dx.doi.org/10.1787/9789264232440-en
OECD. 2016. OECD Broadband Portal. http://www.oecd.org/sti/broadband/oecdbroadbandportal.htm
OECD. 2017. OECD Digital Economy Outlook 2017. http://dx.doi.org/10.1787/9789264276284-en
Richardson, D. 1997. ‘Telstra: Privatisation Issues’, Current Issues, 8. https://www.aph.gov.au/sitecore/content/Home/About_Parliament/Parliamentary_Departments/Parliamentary_Library/Publications_Archive/CIB/CIB9697/97cib8
Sims, R. 2017. ‘Ceteris paribus, competition is king’. Paper presented at the 2017 Annual Conference of Economists, Sydney, Australia. https://www.accc.gov.au/speech/ceteris-paribus-competition-is-king
speedtest.net. 2017. ‘Speedtest Reports; Australia; Fixed’, Speedtest Reports, 8 November 2017. http://www.speedtest.net/reports/australia/#fixed
Telecommunications Act 1991 (Cth)(Austl.). https://www.legislation.gov.au/Details/C2004C07512
Telecommunications Act 1997 (Cth)(Austl.). https://www.legislation.gov.au/Details/C2017C00357
Telstra (Dilution of Public Ownership) Act 1996 (Cth)(Austl.). https://www.legislation.gov.au/Details/C2004A05097
Telstra. 2010. Telstra Annual Report 2010 - Directors' Report. https://www.telstra.com.au/aboutus/investors/financial-information/reports
Tibshirani, R. 1996. ‘Regression Shrinkage and Selection via the Lasso’, Journal of the Royal Statistical Society. Series B (Methodological), 58(1), 267-288. http://www.jstor.org/stable/2346178
Transparency International. 2016. Transparency International - The Global Coalition Against Corruption. https://www.transparency.org/
Turnbull, M. 2014. Vertigan panel lays out path to less telecommunications regulation [Press release]. http://www.minister.communications.gov.au/malcolm_turnbull/news/vertigan_panel_lays_out_path_to_less_telecommunications_regulation
Varghese, S. 2017. ‘NBN woes: govt must carry the can, says Paul Budde’, ITWire, 8 August 2017. https://www.itwire.com/telecoms-and-nbn/79345-nbn-woes-govt-must-carry-the-can,-says-paul-budde.html
Wong, P; Conroy, S. 2010. Statement of Expectations for the NBN. Letter to NBN Co [undated]. http://www.nbnco.com.au/content/dam/nbnco/documents/statement-of-expectations.pdf
World Bank. 2016. World Bank Open Data. http://data.worldbank.org/
Article Sidebar
Published
Mar 30, 2018
Article Details
How to Cite
Barry, T. S. (2018). Australian Broadband Regulation Reviewed. Journal of Telecommunications and the Digital Economy, 6(1), 134–155. https://doi.org/10.18080/jtde.v6n1.131
Issue
Section
Public Policy
Copyright Telecommunications Association Inc.
Author Biography
Troy Sidney Barry, The University of Western Australia
Phd Candidate in Economics
