Inter-mobile network costs too high: ACCC

The consumer watchdog is concerned that Australians are bearing the brunt of the unnecessarily high costs mobile operators charge each other for taking calls and text messages.

In a discussion paper, the Australian Competition and Consumer Commission (ACCC) says whenever a call is made from a mobile phone to a phone on a different network the receiving network may charge a fee, such as a per minute rate.

It has found that the prices mobile operators were charging each other were too high, which meant higher bills for consumers or reduced product offerings.

"The ACCC is now looking to determine how these services should be priced to promote competition in retail markets and benefit consumers," ACCC commissioner Cristina Cifuentes said on Friday.

She says greater competition leads to lower prices and greater choice for consumers.

The ACCC is seeking views on appropriate ways to determine efficient prices for receiving - also known as terminating - mobile calls and SMS.

Submissions are open until August 29.