In Australia, when a call is made or an SMS message is sent from a mobile phone to a phone on a different network, the operator of the receiving network is allowed to charge a fee.

Such fees are typically charged per minute. They are regulated by the Australian Competition and Consumer Commission (ACCC) to ensure that mobile operators do not set them at a level above the actual cost of providing this service.

ACCC has been looking into the fees as part of its ‘mobile terminating access service’ (MTAS). final access determination inquiry, which began in May 2014. In its most recent MTAS declaration inquiry, the ACCC decided to continue to regulate terminating services for mobile voice calls until 2019, and to regulate terminating services SMS services for the first time,

“The ACCC recently found that the prices mobile operators were charging each other to receive mobile calls and SMS messages were too high, which meant higher bills for consumers or reduced product offerings,” ACCC Commissioner Cristina Cifuentes said. “The ACCC is now looking to determine how these services should be priced to promote competition in retail markets and benefit consumers.

“Competition has led to lower prices and greater choice for consumers for voice calls, and we expect greater competition will similarly lower SMS prices. The ACCC would like to hear views on appropriate pricing for SMS services in the long term interests of consumers.”

The discussion paper seeks views on the best ways to determine efficient prices for terminating mobile calls and SMS messages. The ACCC will also set a new regulated price for mobile voice termination services, which is currently 3.6 cents per minute.

The ACCC invites submissions in response to the discussion paper, which close on 29 August 2014. Further information on the inquiry and a copy of the discussion paper in the regulated infrastructure section of the ACCC website.