With fierce competition and a plethora of unlimited deals, you'd expect mobile phone costs in Australia to be falling over time. However, in its annual report on the communications market the Australian Competition and Consumer Commission (ACCC) concludes that prices for mobile services actually rose in 2009-2010. What gives?
According to the ACCC, the main reason for the 1.8 per cent price rise is that older 2G GSM services are becoming more expensive, reflecting reduced demand as 3G wipes them out. In other categories, pricing fell: 3G voice fell by 3.6 per cent, fixed voice by 5.8 per cent, and internet services by 4.9 per cent.
The report also notes that despite the increasing popularity of wireless broadband, the vast majority of data (91 per cent) still moves on fixed line networks -- something to bear in mind when arguing about the NBN.