Telecommunications Regulatory Update – October 2012
Telstra issued with direction to comply with TCP Code
Telstra has been issued with a direction from the ACMA to comply with privacy obligations in the Telecommunications Consumer Protections (TCP) Code. The direction is a consequence of Telstra's failure to protect the personal information of up to 734,000 of its customers during the period from 29 March 2011 - 9 December 2011, in which the usernames and passwords of these customers were publicly accessible via a particular internet link.
Where the ACMA finds a TCP Code breach, it can issue the service provider with a direction to comply or with a formal warning. As Telstra has since taken steps to remedy its processes to prevent a repeat incident, the ACMA considered a direction to be the most appropriate measure. This direction is the first to be issued to a telecommunications provider under the recently registered TCP Code. Failure to comply with a direction may result in the ACMA taking Federal Court action for a pecuniary penalty.
For more information, please see the ACCC Media Release.
Trader pays $19,800 for misrepresenting broadband services
CNT Corp Pty Ltd has paid a total of $19,800 on three infringement notices issued by the ACCC for its conduct in offering and charging for wholesale fibre-to-the-premises (FTTP) broadband internet services at data transfer rates its network could not support.
Between July 2011 and April 2012, CNT Corp had represented that it could supply wholesale FTTP broadband internet services with downstream data transfer rates of 25,50 and 100 megabits per second in the Eden Brook housing estate in Victoria. CNT Corp had also represented that its network had backhaul transmission capacity of 100 megabits per second when this was not the case. CNT Corp's network could not support data transfer rates above 20 megabits per second for a single user.
CNT Corp has provided the ACCC with a court enforceable undertaking to acquire additional backhaul transmission capacity for its Eden Brook network, provide affected customers with credit vouchers redeemable for broadband services and implement a trade practices compliance program.
For more information, please see the ACCC Media Release.
ACCC makes final access determination for non-NBN local bitstream access service
The ACCC has made a final access determination (FAD) for the declared local bitstream access service (LBAS). The LBAS is the wholesale access service for fixed line networks built or upgraded after January 2011 which are provided to residences and small businesses and have a download transmission rate of 25 megabits per second or faster. It does not apply to the NBN or to wireless or satellite networks.
The FAD will apply for three years and expire on 5 October 2012. It contains price and non-price terms and conditions for a 25/5 Mbps LBAS service (a price ceiling has been set at $27 per service per month), and requires LBAS providers to supply a voice service if requested by an access seeker. The FAD also contains non-price terms and conditions of access as a base position if parties cannot reach a commercial agreement.
For more information, please see the ACCC Media Release.
The ACMA to provide spectrum to support public safety agencies
The ACMA has announced that it will provide an additional 60 MHz of spectrum across a number of bands in order to meet two specific needs identified by Australia's public safety agencies: the need for wide-ranging 4G coverage, together with very high capacity, short range coverage for specific incidents and in high demand areas.
Specifically, the ACMA will be making 10 MHz of spectrum from the 800 MHz brand available for the deployment of a nationally interoperable public safety mobile broadband network, and 50 MHz of spectrum from the 4.9 GHz band for use nationwide by public safety agencies. The ACMA has also released a consultation paper explaining the proposed arrangements for the 4.9 GHz band. The new measures for the 800 MHz will be outlined in a discussion paper to be released in December 2012.
Public comment in response to the 4.9 GHz consultation paper is invited by 14 December 2012.
For more information, please see the ACMA Media Release and the Minister's Media Release. For more information on the proposed class licence in the 4.9GHz band, please click here. To view a copy of the 4.9 GHz consultation paper, please click here.
New Consultation Paper released on the 1800 MHz
The ACMA is seeking the views of interested stakeholders to inform its development of a longer term spectrum management strategy for the 1800 MHz band. As part of the consultation, the ACMA has released a consultation paper for comment entitled, '1800 MHz - a shared strategy', and will release a series of three issues papers focusing on:
· a proposal to make 1800 MHz spectrum in regional and remote areas available for use in the short term via public telecommunications service (PTS) apparatus licences;
· a proposal to develop arrangements to encourage greater spectrum sharing within and between industries; and
· a proposal considering the possible future expansion of spectrum licensing arrangements in regional and remote areas.
Public comment is invited until the closing date for the final issues paper, which is expected to close at the end of the second quarter of 2013.
For more information, please see the ACMA Media Release.
Trans-Tasman Competition
The New Zealand Commerce Commission and the ACCC have welcomed the passing of the New Zealand Commerce Commission (International Co-operation, and Fees) Act, which enables the two agencies to cooperate more effectively in dealing with trans-Tasman competition, consumer and telecommunications issues. The Act also provides for renewal of New Zealand Commerce Commission's cooperation arrangement with the ACCC.
For more information, please see the ACCC Media Release. To view a copy of the Act, please click here.
Proposed Radiocommunications amendments
Following a review of the 420 to 430 MHz band range in its Discussion Paper, 'The way ahead - Decisions and implementation options for the 400 MHz band', the ACMA has proposed a series of amendments to the Radiocommunications Licence Conditions (Amateur Licence) Determination No. 1 of 1997 and the Radiocommunications (Overseas Amateurs Visiting Australia) Class Licence 2008. The proposed amendments will remove the the existing authorisation for amateurs to operate stations in the frequency range 420 to 430 MHz and authorise amateurs to operate stations in the frequency range 472 to 479 kHz. The proposed amendments will align Australia's regulation with the agreed outcomes of the World Radiocommunication Conference 2012 (WRC-12).
Public comment on the Discussion Paper is invited by 9 November 2012.
For more information, please see the ACMA Media Release. To view a copy of the Discussion Paper, please click here. To view a copy of the Licence Conditions, please click here. To view a copy of the Class Licence, please click here.
Mobile phone complaints rise against overall decrease in telco complaints during 2011-12
The TIO has published its Annual Report, which reveals that:
· 193,702 new telco complaints were made in 2011-12 (a decrease of two per cent on the previous year);
· complaints made against the three major telecommunications companies (Optus, Telstra and Vodafone) declined in the last quarter of 2011-12;
· consumer satisfaction with the TIO in hearing and resolving complaints is over 90%; and
· the TIO is increasing its engagement with small businesses.
However, complaints about mobile phones increased by nine per cent from the previous annual year, with two out of three complaints made to the TIO relating to mobile phones. The TIO Annual Report also highlighted ongoing billing and credit issues as an area of particular concern. Complaints about billing accuracy and usage charges, and disputes about financial over-commitment, all increased substantially during 2011-12.
For more information, please see the TIO Media Release, the Minister's Media Release and the Communications Alliance Media Release. To view a copy of the TIO Annual Report, please click here.
Protecting Our Customers Brochure to Assist Consumers
The Communications Alliance and the Australian Communications Consumer Action Network (ACCAN) have released a brochure entitled, 'Protecting Our Customers', which summaries the key reforms to customer service and complaint handling contained in the new TCP Code.
The brochure outlines the upgraded requirements in areas including:
· the information consumers receive about a product or service prior to purchasing;
· rules to ensure advertising is accurate and contains unit-pricing information;
· the new framework designed to ensure that all service providers comply with the Code.
For more information, please see the Communications Alliance Media Release. To view a copy of the brochure, please click here.
ACMA's annual report published
The ACMA's annual report 2011-12 has been tabled in the federal parliament. Highlights mentioned in the annual report include, among other things:
· the completion of the 'Reconnecting the Customer' inquiry into customer service and complaints, which resulted in the registration of the new TCP Code;
· the ACMA's role in the rollout of the National Broadband Network, which led to a number of amendments being made to telecommunications legislation in order to strengthen the protections offered by the universal service obligation and Customer Service Guarantee; and
· the provision of evidence and research to support major government reviews of media and content regulation, such as the Convergence Review and the ALRC's Review of the National Classification Scheme.
For more information, please see the ACMA Media Release. To view a copy of the Annual Report, please click here.
ITU annual report reveals latest global technology development figures
The ITU has released it's Annual Report entitled, 'Measuring the Information Society 2012', which contains the latest global technology development figures. Highlights from the report include:
· that the Republic of Korea is the world's most advanced ICT economy, followed by Sweden, Denmark, Iceland and Finland;
· that many developing countries, including Bahrain, Brazil, Ghana and Saudi Arabia, are catching up quickly in bridging the 'digital divide';
· that mobile broadband continues to be the ICT service displaying the sharpest growth rates; and
· that telecommunication and internet services are becoming more affordable on a global scale, with the price of ICT services having dropped by 30% between 2008 and 2011.
For more information, please see the ITU Media Release. To view a copy of the ITU Annual Report, please click here.
Heritage Financial Solutions pays for calling numbers on the Do Not Call Register
Heritage Financial Solutions Pty Ltd, a finance provider, has paid $17,000 in relation to an infringement notice issued by the ACMA for making calls to numbers listed on the Do Not Call Register. Following an investigation conducted by the ACMA, it was found that Heritage Financial Solutions had not adequately supervised the activities of its telemarketers, who did not check or 'wash' their contacts list against the Do Not Call Register before making the telemarketing calls.
For more information, please see the ACMA Media Release.
Do Not Call Register tops eight million numbers
Nearly two thirds of Australian households have registered eight million Australian phone and fax numbers on the ACMA's Do Not Call Register. As at 30 June 2012, 6,725 telemarketers and 193 fax marketers have established accounts to check numbers since the register began and more than 5.4 billion numbers have been checked against the register so far.
For more information, please see the ACMA Media Release.
