Communications Update September 2005
04 October 2005- Telstra sale and related bills passed
- Telecommunications Interception Amendment to fight corruption
- Federal court dismisses Vodafone over mobile terminating access service
- $2 billion Communications Fund for rural and remote Australia
- Coonan announces annual report into teleworking
- Radio spectrum determination registered
- ACMA releases report into network reliability framework
- ACCC issues final report into mobile international roaming
- Optus funding to boost broadband competition
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Legislation
Telstra sale and related bills passed
On 23 September 2005, a number of bills received royal assent as part of a comprehensive package of measures enabling the government to sell its remaining equity interest in Telstra.
The legislative package coincides with the government’s $3 billion Connect Australia package (package).
The following bills have now been passed:
Telstra (Transition to Full Private Ownership) Bill 2005 will:
- amend the Telstra Corporation Act 1991 to permit the government to sell its remaining shareholding in Telstra, without imposing stringent limits on how and when the government is to sell its remaining equity, and
- reaffirm the government’s commitment to maintaining the universal service obligation, the digital data service obligation and the customer service guarantee.
The Bill does not alter the government’s policy on foreign ownership.
Key elements of the Telecommunications Legislation Amendment (Competition and Consumer Issues) Bill 2005 are:
- imposing operational separation on Telstra to ensure equivalent treatment for its wholesale customers
- requiring the Australian Competition and Consumer Commission to consider the costs and risks of new investment when considering access decisions
- imposing a new obligation on carriers to facilitate full interconnection of the networks of competitors, and
- enhancing the powers of the Australian Communications and Media Authority to accept enforceable undertakings.
The Telecommunications (Carrier Licence Charges) Amendment (Industry Plans and Consumer Codes) Bill 2005–06 will support the Telecommunications Legislation Amendment (Future Proofing and Other Measures) Bill 2005 to ensure approved costs of code development are recovered through annual carrier licence charges.
The Appropriation (Regional Telecommunications Services) Bill 2005 will support measures taken in the government’s package, which aims to ensure all Australians have access to advanced telecommunications services across regional, rural and remote Australia now and into the future.
The Telecommunications Legislation Amendment (Future Proofing and Other Measures) Bill 2005, among other things, will:
- provide for a $2 billion Communications Fund, and
- establish the framework for future, regular and independent reviews of the adequacy of regional telecommunications services.
Further detail is available at the Parliament of Australia website.
For further detail on the package, see the Communications Update August 2005.
Telecommunications Interception Amendment to fight corruption
On 14 September 2005, Attorney-General Philip Ruddock announced the Telecommunications (Interception) Amendment (Stored Communications and Other Measures) Bill 2005 (Bill). The purpose of the Bill is to help anti-corruption agencies make better use of material obtained by telecommunications interception.
The Bill will extend for six months the operation of provisions enabling agencies to access stored communications without a warrant under the Telecommunications (Interception) Act 1979.
It will also assist the following anti-corruption agencies across three states:
- the NSW Independent Commission Against Corruption (ICAC)
- the Queensland Crime and Misconduct Commission
- the Inspector of the New South Wales Police Integrity Commission
- the Inspector of ICAC, and
- the Victorian Office of Police Integrity.
Attorney-General Philip Ruddock also announced Anthony S Blunn AO’s Report of the Review of the Regulation of Access to Telecommunications (report).
The report reviews the policy options for the regulation of access to telecommunications, with particular concern to new and emerging telecommunications technologies.
The report pays particular regard to protecting the privacy of users and the ongoing appropriateness of the current telecommunications interception regime.
Further detail is available at both the Attorney-General’s website and the Comlaw website.
Cases
Federal court dismisses Vodafone over mobile terminating access service
On 16 September 2005, the Federal Court of Australian (court) delivered judgment in Vodafone Australian Limited v Australian Competition and Consumer Commission.
Justice Edmonds rejected Vodafone’s challenge to the some aspects of the Australian Competition and Consumer Commission’s (ACCC) pricing principle determination (Determination) for the mobile terminating access service (MTAS).
The MTAS is a wholesale input used by service providers which enables fixed-line or mobile customers to call mobile users connected to the service provider’s network. The customer who makes the call ultimately pays the charges levied for the MTAS by the carrier whose customer receives the call.
Vodafone instigated proceedings in July 2004, challenging the ACCC’s power to specify prices in the Determination and arguing that the Determination should not extend to third generation (3G) mobile networks.
The court found that the Determination validly includes prices and applies to the supply of services on both 2G and 3G mobile networks.
A copy of the decision is available here.
Regulatory developments
$2 billion Communications Fund for rural and remote Australia
On 23 September 2005, the government announced the transfer of $2 billion into the newly created Communications Fund (fund) to aid telecommunications services in rural, regional and remote Australia, after the telecommunications package enabling the government to sell its remaining shareholding in Telstra received royal assent.
The government anticipates that the fundwill attract a return of approximately 5.5 per cent.
The first review of telecommunications services in rural, regional and remote Australian is expected for 2008 with reviews to follow every three years.
The fund is part of the government’s $3 billion Connect Australia package (package), to ensure all Australians have access to telecommunications services now and in the future.
On 14 September 2005, the Minister for Communications, Information Technology and the Arts, Senator Helen Coonan, had announced that Senate had approved the package, following the passage of five pieces of telecommunications legislation through the Senate.
The package addresses the weaknesses in the transmission of mobile and broadband services.
The themes of the package are:
- a $1.1 billion investment in regional telecommunications services
- a $2 billion investment in future rural, regional and remote telecommunications
- enhanced competition regulation, and
- improved consumer safeguards, which add to the universal service obligation, the customer service guarantee and the digital service obligation.
Further detail is available at the DCITA website.
For further detail on the package, see the Communications Update August 2005.
Coonan announces annual report into teleworking
On 22 September 2005, the Minister for Communications, Information Technology and the Arts, Senator Helen Coonan, announced the 2005 Sensis Insights report into teleworking (survey).
The government established the Australian Telework Advisory Committee earlier this year to examine teleworking in Australia.
The survey defined telework as work an individual does away from their normal place of business, during their work hours, and using some form of information and communications technology.
The survey found that 30 per cent of Australians have teleworked and over one-third of small and medium enterprises (SMEs) use teleworking.
Telework provides businesses with flexibility and convenience. SMEs who use teleworking consistently record higher sales and profits.
The survey arrives at the same time as the Australian Competition and Consumer Commission’s release of figures indicating the take-up of broadband services has increased by more than 108.3 per cent to over 1.1 million subscribers.
Further detail is available at the DCITA website.
Radio spectrum determination registered
On 8 September 2005, the Radiocommunications (Trading Rules for Defence Spectrum Licences) Determination 2005 (Determination) was registered.
The Determination outlines the conditions under which the Department of Defence can trade Defence spectrum licenses within the 20.2–21.2 GHz and 30.0–31.0 GHz (20/30GHz) bands.
Further detail is available at the Comlaw website.
ACMA releases report into network reliability framework
The Australian Communications and Media Authority (ACMA) has released its Report on the review of the Network Reliability Framework (review).
The review was conducted by the Australian Communications Authority (now the ACMA) during 2004.
The Network Reliability Framework (NRF) is a regulatory initiative that monitors the reliability of Telstra’s fixed telephone services and complements the Customer Service Guarantee, which ensures that service faults are repaired within a reasonable time.
The NRF has three levels of operation:
- Level 1—national and regional performance
- Level 2—localised area performance, and
- Level 3—individual service performance.
The review demonstrates Telstra’s overall compliance with the NRF.
Further detail is available at the ACMA website.
Competition
ACCC issues final report into mobile international roaming
On 14 September 2005, the Australian Competition and Consumer Commission (ACCC) released its Final Report (report) on its inquiry into mobile international roaming.
International roaming is a service which enables travellers to temporarily connect to an international mobile network within the country they are visiting. To enable this, the customer’s mobile service provider must enter into a wholesale ‘roaming’ agreement with a mobile operator in the overseas country.
Overall, the report expresses concerns about the prices for international roaming services.
Further detail is available at the ACCC website.
Industry developments
Optus funding to boost broadband competition
On 22 September 2005, Optus announced its intention to invest more than $150 million in rolling out its broadband network across Australia.
Communications Minister, Senator Helen Coonan welcomed the move, as one which will boost telecommunications competition and improve services in the bush.
The funds will ensure Optus reaches an additional 2.9 million households and businesses in Australia.
The investment will target metropolitan areas initially.
Further detail is available at the Optus website.
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