Macquarie Applauds ACCC Stance on Fixed-To-Mobile Pricing

Sydney, Australia – 30 June, 2004 – The Australian Competition and Consumer Commission (ACCC) is to be congratulated for its recommendations to reduce fixed-to- mobile costs, according to Maha Krishnapillai, National Executive Strategy, Macquarie Corporate Telecommunications.

The long-awaited Mobile Services Report released today, recommends a staggered reduction in wholesale fixed-to-mobile costs commencing with a drop to 21 cents to apply for the rest of this year. The report then recommends a reduction to18 cents in 2005, 15 cents on 1 January 2006 and 12 cents as of 1 January 2007.

“This is particularly good news for business where typically between 30 to 40 percent of voice telecommunications spend relates to mobile usage,” said Krishnapillai. “We welcome the report's recommendations and look forward to the ACCC's promised ongoing monitoring of the market both domestically and overseas. While today's announcement is a good start to redressing the imbalance in the marketplace, we are optimistic the planned monitoring will in fact result in the prices being reduced sooner than outlined in today's report.”

Macquarie sees the analysis and findings of the report released today as a further indicator of the growing preparedness of the ACCC to address the significant structural distortions that inhibit competition in the telecommunications sector.

“When viewed with the ACCC's recent rejections of Telstra's wholesale broadband offers and recognition that competition in the mobile markets is inhibited by Telstra's control over fixed networks, this report shows the regulator will roll up its sleeves and address head-on the road blocks that hold back competition. Let's hope this trend continues,” said Krishnapillai.

According to Krishnapillai, the ACCC's report on mobiles is an exceptionally well researched document that adds greatly to the industry's understanding of the role of regulation and the future of mobile services. Its substantive findings tackle all of the issues put to the Commission and many that have only been half addressed by other regulators in overseas markets.

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For more information:
Mandy Galmes
N2N Communications
02 9213 2302
agalmes@n2n.com.au

About Macquarie Telecom
Macquarie Telecom is a leading supplier of Information and Communications Technology (ICT) solutions – including voice, data, mobile and hosting – specialising in the business and government markets. The world class Intellicentre facility offers state-of-the-art hosting and security solutions. The Intellicentre is certified to BS 7799 and DSD Gateway security standards.

Macquarie Telecom provides services to more than 2,500 of the top companies in Australia and Asia, supporting more than one million business users at work every day. Founded in July 1992, it is one of Australasia's first deregulated telecommunications companies. It expanded its operation into Asia in 2000, and holds carrier licences in Australia, Singapore and Hong Kong.