The ACMA recently reviewed the Telecommunications (Provisions of Pre-selection) Determination. We have decided to keep the current rules in place.
Pre-selection allows consumers to obtain line rental and local call services from one service provider but use another for:
- national long-distance
- international
- fixed-to-mobile calls.
Pre-selection was introduced to encourage competition among fixed-line voice and integrated service delivery network (ISDN) services. We expect ISDN services to be switched off by 2022. There are no pre-selection requirements for NBN retail suppliers, wireless or mobile services.
Under subsection 349(15B) of the Telecommunications Act 1997 (Telco Act) the ACMA had to review whether to vary or revoke the determination by 1 May 2020.
We completed a targeted consultation, reaching out to:
- carriage service providers
- industry and consumer organisations
- the ACCC
- the Department of Infrastructure, Transport, Regional Development and Communications.
Most stakeholders did not support revoking or varying the instrument. They wanted to keep the determination, at least until the NBN transition is complete.
Our consultation confirmed a significant decline in the use of pre-selection, with usage falling 68 per cent between 2017 and 2020. While the largest falls were in the direct use of pre-selection by residential consumers, we found the determination was still being used by telcos to support wholesale arrangements delivering pre-selection services to their customers.
The ACMA estimates fewer than 100,000 consumers are now using pre-selection. Changing the determination now may have resulted in disruption to these consumers, who might have been required to change providers or renegotiate agreements for a very short time before moving to the NBN.
While the ACMA has decided not to make any changes to the determination now, we acknowledge there would be benefit in considering its viability once the NBN transition is complete.
You can access submissions on our targeted consultation below.
