Is Telstra’s regional monopoly holding back small-business growth?

Mobile phone network

According to some telecommunications and small business experts, the answer is yes. The topic of how domestic mobile roaming is Australia’s best opportunity to drive mobile coverage expansion in regional areas is on the agenda of this week’s National Small Business Conference in Melbourne.

Currently, Telstra holds a taxpayer-funded mobile monopoly in vast areas of regional Australia. The Summit, hosted by the Council of Small Business Australia (COSBOA), will support the right for regional businesses to have the same coverage enjoyed by their metropolitan counterparts.

The introduction of domestic mobile roaming would allow all Australians to use their mobile wherever coverage exists, regardless of their provider. This removes the need for multiple carriers to duplicate infrastructure in regional areas, so that carriers, governments and communities could co-invest in one expanded, shared infrastructure which delivers new coverage.

Dan Lloyd, Chief Strategy Officer and Corporate Affairs Director, Vodafone will champion the call at the Summit to improve coverage, competition and choice in regional areas.

“Domestic roaming would be a game changer for small businesses in regional Australia, unlocking enormous opportunities for innovation, productivity and growth through improved mobile coverage and competition.

“Telstra’s regional mobile network is the network taxpayers built, with around $2 billion in government funding and subsidies given to Telstra since 2006. All small businesses in regional Australia should be able to benefit from taxpayers’ investment, instead of being stung with Telstra’s price premium,” said Lloyd.

Domestic mobile roaming has proved successful in similar countries around the world.

“Mobile roaming has been effectively regulated in virtually every other western country with similar challenges of large land area and low population density – the USA, Canada, New Zealand, France, and Spain. It should be a no-brainer for Australia,” concluded Lloyd.

Small business advocate, Peter Strong, CEO of Council of Small Business Australia (COSBOA), supports Lloyd’s call for increased competition through domestic mobile roaming.

“Small businesses across the country would benefit from increased competition in the rural telecommunications. Sector competition encourages product improvement and lower costs, both which rural small business people and consumers alike would welcome,” Strong said.

In response, Telstra have reiterated their own commitment to regional businesses. In a statement to Inside Small Business Telstra said:

Dozens of community groups, business leaders, local councils and politicians from across the country made submissions to the ACCC on the issue of regulated mobile roaming. The overwhelming call from regional Australia was that their top priority was encouraging telecommunications investment to improve and extend mobile coverage.

“Last year Telstra committed to keep investing to improve and expand our mobile network in regional, rural and remote areas. Through our own direct investment, as well as co-investment, we expect to see up to $1 billion of investment flow to small towns and regional centres across the country over the next five years.”