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ARTICLE · 29 JUNE 2014

ACCC to regulate wholesale SMS services for the first time

Both wholesale mobile voice and SMS termination services in Australia will be regulated by the ACCC from 1 July 2014.

AustraliaMedia, Telecoms, IT, Entertainment

Key Points:

Both wholesale mobile voice and SMS termination will be regulated from 1 July 2014 with the ACCC looking at setting regulated prices for SMS termination services.

On 17 June 2014, the ACCC announced that for the next five years it will add domestic wholesale SMS termination to the mobile termination services which are regulated in Australia. This is a significant decision for carriers and carriage service providers and is the first time that SMS termination services have been subject to regulation by the ACCC. The ACCC suggests that the effect of the declaration will be "to see SMS termination rates reduce which should lead to lower SMS prices for consumers".

The ACCC's decision to extend the domestic mobile terminating access service (MTAS) declaration to SMS termination services opens the way for the ACCC to make a final access determination (FAD) which sets wholesale SMS termination charges.

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