5.2 Prepaid vs post-paid sub-indices
Real prices fell for both post-paid and prepaid mobile services sub-indices in 2013−14. Figure 5.2 shows that the post-paid sub-index fell by 1.9 per cent, a larger decline than that observed in 2012−13 (0.8 per cent), while the prepaid sub-index fell by 2.5 per cent, a smaller decline than in 2012−13 (3.1 per cent).
Figure 5.2 Year-on-year percentage changes in the overall mobile services index and the post-paid and prepaid sub-indices, 2009−10 to 2013−14
Figure 5.3 shows how the post-paid and prepaid sub-indices contributed to the overall fall in the mobile services index in 2013−14. The post-paid sub-index contributed significantly more to the overall fall in the mobile services index as post-paid services account for a greater proportion of mobile services in terms of revenue share (81.8 per cent).
Figure 5.3 Points contribution by prepaid and post-paid indices to the change in the mobile services index, 2013−14134
5.3 Price changes by user groups
Real prices increased for the very low, low and average user groups of post-paid services and decreased for high and very high user groups in 2013−14 (figure 5.4). Prices for the very low user group have been increasing over the past four years and increased by 12.3 per cent in 2013−14 (following a 17.9 per cent increase in 2012−13).
Figure 5.4 Year-on-year percentage change in the price index for post-paid services by user group, 2009−10 to 2013−14
Figure 5.4 shows that prices for the very low user group increased significantly in 2013−14. However, some carriers have included greater data allowances when increasing prices. Therefore, consumers within the very low user group may not necessarily be worse off when paying higher prices.
Figure 5.5 shows changes in the real prices of prepaid services for all user groups between 2009−10 and 2013−14. Real prices for all user groups fell in 2013−14, with the decreases generally consistent with previous years, with the exception that real prices for the very low user group falling by 2.3 per cent in 2013−14 after falling by 0.1 per cent in 2012−13. The consistency observed over the last two years is in contrast to the volatility in price movements observed from 2009−10 to 2011−12.
Figure 5.5 Year-on-year percentage change in the price index for prepaid services by user group, 2009−10 to 2013−14
6 Internet services index
The internet services index measures average real price movements for wireless, DSL, cable and NBN internet services.
Consistent with previous reports, wireless internet services are those services that provide internet connectivity via a USB modem key or wireless card. They therefore exclude data services available through a mobile handset.
Internet services can be supplied using a range of access technology over the NBN (e.g. fibre, wireless and satellite etc.) For the purposes of this report, NBN services are reported as an aggregate index.
The wireless, DSL and cable internet sub-indices are calculated by comparing prices for the selected plans at the beginning and end of each reporting period. The prices for those services are estimated based upon published plan prices and representative usage/spend profiles for consumers in each expenditure quintile. The NBN sub-index is calculated using the same method.
The sub-indices for those individual service types are then weighted and aggregated to form the price index for internet services.
6.1 Overall changes
The average prices of internet services decreased by 2.2 per cent in real terms in 2013−14 (table 6.1). This implies that nominal internet prices rose slightly during the year. The downward trend for real internet prices continued in 2013−14 and the annual price decline has increased from a low of 0.9 per cent in 2012−13. This is mainly the result of a price decrease for DSL and wireless internet services.
Table 6.1 Year-on-year ‘real’ percentage changes in the internet services index by service type
|
2007−08
|
2008−09
|
2009−10
|
2010−11
|
2011−12
|
2012−13
|
2013−14
|
Wireless
|
n/a
|
−18.5
|
−14.7
|
−3.5
|
1.7
|
1.8
|
−2.7
|
DSL
|
−5.2
|
−0.4
|
−2.0
|
−3.4
|
−5.7
|
−2.2
|
−2.0
|
Cable
|
−5.9
|
0.5
|
−1.1
|
−3.5
|
1.0
|
−1.8
|
−2.2
|
NBN internet
|
n/a
|
n/a
|
n/a
|
n/a
|
n/a
|
n/a
|
4.6
|
Overall
|
−6.2
|
−4.6
|
−4.9
|
−3.6
|
−2.7
|
−0.9
|
−2.2
|
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