ACCC probes mandatory mobile roaming to fix regional coverage gaps

The Australian Competition and Consumer Commission (ACCC) has launched an inquiry to determine if mandatory domestic mobile roaming is necessary to improve connectivity in regional and remote areas. The move signals a potential regulatory shift in how mobile coverage is delivered to the bush, focusing on whether current market structures provide sufficient service and choice.

The inquiry will specifically investigate whether a mandatory roaming declaration should be implemented to bridge existing coverage gaps. The ACCC expects the process to take approximately 12 months to complete. The scope of the investigation includes the specific needs of mobile users in remote regions, the potential impact of such regulation on network investment, and whether consumers currently possess a "meaningful choice" between different service providers.

The battle over regional black spots

Regional Australia has long been plagued by inconsistent mobile coverage and persistent "black spots," leading to significant disparities between urban and rural connectivity. This inquiry follows ongoing pressure from regional advocates and findings from the 2024 Regional Telecommunications Review. At the heart of the debate is whether the dominant network provider, Telstra, should be compelled to allow smaller carriers to utilize its infrastructure to ensure universal access, or if such a mandate would undermine the commercial incentives required to build new towers.

Industry implications and investment risks

For regional industries, particularly agriculture and beef production, reliable telecommunications are no longer a luxury but a critical requirement for operational safety, logistics, and overall business efficiency. A shift toward mandatory roaming could theoretically increase coverage for users of smaller telecommunications companies, potentially lowering costs and increasing reliability for those in remote areas.

However, the proposal faces stiff opposition from the industry's largest player. Telstra argues that a mandatory roaming program would weaken the incentives for investment in regional and rural infrastructure. The company contends that such a move would lead to worse long-term network outcomes for regional Australia by discouraging the capital expenditure needed to expand the physical network.

Next steps for the regulator

Over the coming year, the ACCC will weigh the immediate benefit of increased coverage via roaming against the long-term risk of reduced infrastructure investment. The final determination will likely hinge on whether the regulator finds that the current voluntary roaming arrangements are insufficient to meet the needs of remote Australians. Stakeholders will be watching to see if the ACCC recommends a formal declaration of mandatory roaming to the government.