Industrial Organisation Report: ACCC Market Study of Australia

This report analyzes the issues identified in the Australian Competition and Consumer Commission (ACCC) market study of the communication sector. It articulates the issues faced by businesses and consumers, focusing on economic and ethical concerns related to network providers and communication services. The analysis delves into economic reasoning, examining efficiency and equity arguments, and highlights the impact of changing consumer preferences and technological advancements. The report positions these issues within the context of market dynamics, critiques the current state, and considers the implications of the findings. It concludes by summarizing the key challenges and emphasizing the importance of addressing consumer needs and technological advancements to maintain a competitive position within the Australian telecommunications market. The report references various journals and online resources to support its findings.

Industrial organisation

Table of Contents
INTRODUCTION...........................................................................................................................1
Articulation of issues.......................................................................................................................1
Analysis............................................................................................................................................2
Position............................................................................................................................................2
Critique............................................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Industry regulators, such as the Australian Competition and Consumer Commission
(ACCC), routinely monitor a variety of industries to assess competition and market efficiency in
the interest of consumers. In accordance with this context, this report will identify the issues in
the submission of business and consumers related to the ACCC market study of communication
sector in Australia.
Articulation of issues
This part will consist of the main issues of economic and ethical nature which are
presented by business and consumers in the ACCC market study. There are many issues which
are faced by the business in telecom sectors and telecommunication sectors in Australia
(Communications sector market study, 2017). These issues are related with the network
providers and communication services which are provided to the consumers. Taste and
preferences of consumers are dynamic in nature. This nature forces organisations such as Viber,
National Broadband Networks (NBN), Nationals Farmer Federation (NFF), etc. to improve their
communication services to meet the needs and desires of consumers effectively and efficiently.
In rapid rising of globalisation, impacts the telecommunication service provider with issues such
as competition, bugs and glitches in voice and data, etc. In the recent years, technological
advancements leads to increase in the problems faced by telecommunication industries in order
to increase their business growth and development.
Moreover, these issues lead to increase in the problems and issues faced by consumers in
order to communicate with other using telecom services. The increase in internet usage in the
youth of the country impacts on broadband and Wi-Fi service providers of Australia (Turner and
et.al., 2017). Now the youth of Australia switched to wireless devices. The issue in upgrading
technologies faced by the telecommunication organisation. Regional Australian consumers have
higher dependency on mobile as compared to city people. Hence, it leads to the challenge faced
by the telecom sector of Australia to develop their network services. They now have to increase
their bandwidth which requires ample amount of cost. Further, many Australians shifted from
fixed land line to mobile phones. It requires huge efforts by organisations such as NBN in
improving the voice and data services. Enterprises and companies also concerning about the
quality, affordability, availability of the network services provided by them.
1

Analysis
In this part, issues raised will be analysed using economic reasoning relevant to economic
efficiency and equity arguments. From the analysis of the market study made by Australian
Competition and Consumer Commission, it was identified that there were multiple issues faced
by the business organisation in communication sectors. One of the consumer faced issues with
internet service provided by NBN. He complaints about the slight progress in the line speed of
broadband. Another consumer faced issues with Multi-Technology Mix (MTM), a service
provided by NBN in which he stated that the services negatively impacts on the network and
telecommunication sectors. The economic contribution of information and telecommunication
sector was reported around 4.93% in total Australia GDP.
This contribution indicated the positive growth and development of the
telecommunication services in the country. Albeit, the users and consumers who faced several
difficulties and issues regarding the quality of calls, internet and data services, etc. From the
analysis it was identified that OTT communication services such as Facebook, Skype, etc are
more used by the consumers. Thus, organisation investing in improving their OTT
communication services. From the analysis, it was further identified due to change in taste and
preferences of the consumers, organisation frequently upgrading their technologies and
broadband services, which embarks the preliminary glitches that impact on the consumers
negatively.
Position
Position part of the report will aid in interpreting the analysis made above and also
synthesise the issues to support and provide evidence for clear overall position. From the above
analysis it was identified that consumers faced issues with quality, affordability and availability
of telecommunication services and organisation faced issues with dynamic transformation in the
taste and preferences of consumers. The quality of network and data services are not appropriate
for consumers (Alizadeh, 2015). They are demanding more coverage area networks and high
speed internet. Improvements in the internet protocol services and communication services, will
help in eradicating the present issues and also provide benchmark for future success of
organisation. The overall position of telecommunication organisation relies on the frequent
changes and transformations in their technologies. Consumers demands efficient quality services
from their specific company. From this context, it can be said that organisations needs to
2

implement particular strategies that will aid in their growth and development effectively (Bhatti,
Abareshi and Pittayachawan, 2016). Thus, it implies that in order to maintain the efficient
position in the economy, organisations needs to eliminate the issues faced by the consumers
effectively.
Critique
In this part of research report, critical critique of the position will be made. Further,
assumptions, objections to and implications of the position will be identified. According to
Competition, (2013) telecommunication sector in Australia, plays an important role in
development of the national economy of the country. Alizadeh, (2015) said that due to increase
in globalisation, consumers wants effective quality services from their respective organisations.
The telecommunication services fails to meet the consumers' expectation which leads to evolving
issues and increasing difficulties which faced by the consumers. According to Bhatti, Abareshi
and Pittayachawan, (2016) ACCC market study identifies issues faced by both the consumers
and business regarding communication and network services.
Bosua and Gloet, (2017) said that organisation faced issues with frequent change in
consumer needs and desires. To meet their needs, the technologies and techniques developing
constantly by the management and respective authority of organisations. Albeit Choo, (2014)
said that organisation are doing their best in order to eliminate these issues by frequently
modifying their network scheme and plans. With the governmental help and support,
telecommunication sector of Australia, shows progressive improvements as compared to other
countries in terms of network providing. Thus, it implies that both consumers and business work
abreast in order to have effective quality network services in the country.
CONCLUSION
The above research report helps in understanding the issues faced by the consumers and
businesses of telecommunication sector of the country. The market study conducted by the
Australian Competition and Consumer Commission (ACCC) identifies many issues faced both
by consumers and organisations. This report helps in comprehending the issues with appropriate
analysis and critique.
3

REFERENCES
Books and Journals
Alizadeh, T., 2015. The spatial justice implications of telecommunication infrastructure: The
socio-economic status of early National Broadband Network rollout in
Australia. International Journal of Critical Infrastructures. 11(3). pp.278-296.
Bhatti, H., Abareshi, A. and Pittayachawan, S., 2016, December. An evaluation of customer
repurchase behaviour in mobile telecommunication services in Australia. In Industrial
Engineering and Engineering Management (IEEM), 2016 IEEE International Conference
on (pp. 602-606). IEEE.
Bosua, R. and Gloet, M., 2017. Telework and People with Disabilities: Perspectives of Managers
and Employees from Australia. In Anywhere Working and the New Era of
Telecommuting (pp. 145-169). IGI Global.
Choo, K. K. R., 2014. Legal issues in the cloud. IEEE Cloud Computing, 1(1), pp.94-96.
Competition, A., 2013. Consumer Commission (ACCC)(2015). Changes in the Prices Paid for
Telecommunications Services. 2014.
Turner, G.H., and et.al., 2017 Telecommunication relay services as a tool for deaf political
participation and citizenship. Information, Communication & Society. 20(10). pp.1521-
1538.
Online
Communications sector market study. 2017. [Online]. Available
through:<https://www.accc.gov.au/about-us/market-studies/communications-sector-
market-study> [Accessed on 17th October 2017].
4