Australian consumers are being gouged by telcos for sending text messages on their mobiles, says a consumer group which has asked the competition regulator to take action.

In a submission to an inquiry by the Australian Competition and Consumer Commission, the Australian Communications Consumer Action Network said some Australians were paying unreasonable SMS prices because telcos inflate the price they charge one another to pass texts between networks.

How much do text messages really cost? Less than one cent per 100, says Macquarie Telecom.

"Consumers should not be slugged for simply sending an SMS. It's time the ACCC stepped in and set the scene for some real competition. Telcos are currently setting whatever outrageous wholesale price they want and then that gets passed onto consumers," ACCAN deputy chief executive officer Narelle Clark said.

In a submission to the ACCC's Domestic Mobile Terminating Access Service Declaration inquiry, Macquarie Telecom said it cost telcos less than one cent to send 100 text messages.