Choosing Telecommunications? Consumers in a Liberalised, Privatised Telecommunications Sector

Abstract

Consumers were promised that the introduction of open competition in the Australian market would bring greater choices and cheaper prices. This article considers how residential consumers have fared in a liberalised, privatised Australian telecommunications sector in the 1990s. It finds that, while consumers in general have enjoyed considerable benefits from liberalised, competitive telecommunications markets, especially in terms of wider choices and price reductions, not all consumers have shared in the benefits. Indeed, equitable, affordable access to a service supported by common standards of quality and reliability is under threat from the demands of market-based competition. Producing service quality indicators and consultation structures appropriate to the expression of consumer concerns will be essential to ensure that consumers benefit from competition in telecommunications.