Accc telecommunications reports 2013−14 This publication contains two reports

In 2013−14, the DSL sub-index made the largest contribution to the decrease in the overall internet services index, followed by wireless and cable internet services. Prices for NBN services increased during 2013−14 however its contribution to the internet services index is relatively small.

In 2013−14, wireless internet prices decreased by 2.7 per cent in real terms which reverses a trend of price increases during 2011−12 and 2012−13.

While the significant price falls in 2008−09 and 2009−10 helped drive strong take up of wireless internet services, there have been smaller price movements since then. During the 2013−14 reporting period most carriers have maintained their plan offerings (in terms of nominal prices and inclusions).

6.4 DSL internet services

In 2013−14, average real prices for DSL internet services fell by 2.0 per cent and this is the seventh consecutive annual price decline. The magnitude of the price decline was the smallest since 2009−10 because carriers largely maintained the price points (i.e. the nominal price) and data inclusions of their plans in 2013−14. The price decline in DSL services was also the major contributor to the overall decline in the internet services index.

In 2013−14, real prices for cable internet services decreased by 2.2 per cent. The prices of cable internet services have been relatively stable over the years with annual price changes of less than two per cent in all but two of the reporting periods (2007−08 and 2010−11).

During 2013−14, carriers generally maintained prices on existing plans for high and very high spending consumers and revised plans aimed at lower spending consumers. The revisions were generally either in the form of lower prices or lower prices for less data quotas.

6.6 NBN internet services

In 2013−14, real prices for internet services supplied over the NBN increased by 4.6 per cent (table 6.1). This can be mainly attributed to a number of retail service providers increasing the price of some of their NBN internet plans. However, end-users of these NBN plans were not necessarily worse off, as many of the plan price increases were also accompanied by increases in the data inclusions for the relevant plans.

Further, this report only considers retail price movements for NBN internet services—it does not indicate movements in wholesale price levels.

In addition, NBN’s share of the internet services market is relatively small in 2013−14. This is reflected in its small share of the overall internet services revenue and its small contribution to the change in the internet services index in 2013−14 (table A12).

Note: Base year for old series is 1997−98.

Note: The sum of the components’ points contribution may not add up to the net index change due to rounding.

Table A4 Fixed-line voice services index by service, 1997−98 to 2013−14