Transmission (also known as backhaul) refers to high-capacity, dedicated datalinks that carry large volumes of data. These services are supplied by telecommunications network owners to other service providers wishing to carry data traffic between two locations.
The Domestic Transmission Capacity Service is a high-capacity transmission service that enables service providers to provide downstream wholesale and retail services to end users. Some transmission lines are regulated through a regulatory declaration by the Australian Competition and Consumer Commission (ACCC) in force until 2024, when competitive transmission routes will become less regulated than those with only one provider.50
In many regional areas, Telstra is the only transmission provider on many routes. Without regulation and competition, they could charge high prices and limit investment in new services.
Adequate and competitive backhaul will become more crucial for the future of the NBN and 5G and for ensuring growing regional communities are well served with telecommunication services. There will need to be ongoing regulation to ensure fair pricing of regional transmission services where there is only one backhaul provider.
ACCC regulation has supported better value and quality. It should be a priority for the Australian Government and state and territory governments to continue monitoring the competitiveness of pricing, reliability and speed of key routes servicing Australia's Smaller Cities and Regional Centres so there is more coverage, quality and choice.