The opinion piece below was written by ACCAN CEO Carol Bennett for the Canberra Times. It was originally published on 13 December 2024.
Australians will go to the polls in the first half of next year with the cost-of-living crisis dominating the political agenda.
The skyrocketing costs of essentials have hit people hard. The housing crisis has sent rents spiralling, and supermarkets have been accused of price gouging on essential food items. The eye-watering cost of electricity and other utilities is also hitting hard.
But there is another essential service that has avoided the spotlight despite rising prices and significant consumer pain.
Today communications is an essential service. It's not only the ability for people to keep in contact with family and friends. A reliable, affordable mobile and internet plan is now critical to access important health and support services, to work, to study, and to be productive. Multiple forms of connectivity help us respond to natural disasters and life-threatening accidents.
And yet the nation's three major telecommunications companies - Telstra, TPG and Optus - have all hiked prices this year, blaming inflationary pressures and increased costs of doing business. Yet the resulting bill pressure has left consumers reeling.
We know that 57 per cent of low-income households and individuals struggle to pay for an NBN service. It is clear we cannot leave it up to telecommunications companies to champion a more affordable way forward.
As the federal government puts together its March budget there are a range of measures it should include to champion reliable and affordable access to communications and reverse our nation's disturbing digital divide.
Firstly, it should establish a concessional broadband service to improve the affordability of NBN services for consumers receiving government support.
There is a persistent lack of affordable, entry-level NBN offerings for households experiencing financial stress, with starter NBN plans costing $75 per month.
And yet the government could provide a subsidy to NBN Co to allow them to develop an unlimited 50/20Mbps service, price capped at $20 per month, for households that are receiving Commonwealth financial support.
These households would then only have to pay approximately $30 per month retail to access reliable internet.
But the government should go further and establish a National Device Bank (NDB) to provide free refurbished internet devices to those who are struggling financially.
Such a service would refurbish internet devices including mobile phones, tablets, laptop and desktop computers donated by corporate and government organisations once they have reached their initial end of life.
It is hard to overestimate the impact this could have given 51.6 per cent of lower income families reported they can't afford the digital devices needed for schoolwork.
And troublingly 84 per cent of students with inadequate access to a computer had trouble finishing class work and assignments.
Funding should also be directed to regional, rural and remote parts of Australia. This should include a move to transfer the Universal Service Obligation from Telstra to NBN Co and establish fit-for-purpose governance arrangements that ensure NBN Co is accountable and transparent.
And the Albanese government could do more to help all consumers in its looming federal budget.
It should fund the establishment of an independent plan comparison tool for the telecommunications market to assist consumers in finding a product that best suits their needs and budget.
As it stands, consumers are not appropriately supported to easily find and compare information about phone and internet plans.
That 50 per cent of consumers have not switched their telecommunications provider in the last five years, and almost 68 per cent of consumers haven't switched their provider in the last three years reflects this.
Such a tool would empower consumers with reliable and impartial information about which plan best meets their needs. It would encourage consumers to change their plans more frequently - inspiring greater competition and pressure to lower prices.
Consumers need robust legal protections. That is why the federal government should resource and expand the Telecommunications Industry Ombudsman (TIO) to become a Digital Communications Industry Ombudsman.
It could introduce mandatory internal dispute resolution standards covering digital platforms and fund a consumer voice to advocate for consumers on digital platforms policy matters.
Recent court action by the ACCC regarding unconscionable conduct by Telstra (actual) and Optus (alleged) highlights why the government needs to establish direct regulation for sales practices in the telecommunications sector. Some of our country's most vulnerable consumers face significant harm. Sales practices regulation would ensure that consumers are sold products that fit their needs and benefit consumers and telecommunications providers alike.
Digital communications are essential to Australian life. More needs to be done to make connectivity more affordable and to give greater protections to consumers.
These initiatives would bring cost-of-living relief without driving inflation. They would also enable more Australians to be productive and engaged. That's an investment in the future that the country should be making.
Comments powered by CComment