Telecommunications Regulatory Update - December 2011

The ACCC is inviting comment on the SAU lodged by NBN Co on 5 December 2011.  The SAU provides a framework for access to services provided over NBN Co's fibre, wireless and satellite networks until June 2040. The ACCC's consultation paper provides an overview of the SAU and the assessment process to be adopted by the ACCC.  The consultation paper invites interested parties to provide their initial views on particular areas of the SAU on which the ACCC should focus.  A supplementary consultation paper will be released in February 2012 analysing the SAU in more detail and providing ACCC guidance on what it considers to be the key issues with the SAU.

Submissions received by 30 March 2012 will be considered by the ACCC in deciding whether to accept or reject the SAU, and submissions received by 20 January 2012 will also be considered in the supplementary consultation paper.

For further details see:

NBN Co SAU
ACCC Media Release

ACCC issues draft guidelines on non-discrimination for NBN and superfast telecommunications networks

The ACCC has released draft guidelines on the non-discrimination provisions contained in Part XIC of the Competition and Consumer Act 2010.  The new guidelines are intended to provide guidance to industry on when providers can negotiate different supply terms with their customers. NBN Co and other providers of superfast telecommunications services are prohibited from discriminating among their customers, except in limited circumstances, as part of the NBN reforms.  Submissions are due by 5.00 pm on 3 February 2012.

For further details see:

ACCC Media Release
Draft Guidelines

ACCC invites comment on Telstra's revised structural separation undertaking

The ACCC has released a discussion paper inviting comment in relation to the revised structural separation undertaking submitted by Telstra on 9 December 2011.  Submissions are sought on the appropriateness and effectiveness of the interim equivalence and transparency measures, and the monitoring of compliance measures in Telstra's revised undertaking.
 

Submissions are due by 5.00 pm on 13 January 2012.  The ACCC does not propose to issue a draft decision prior to making a final decision on the undertaking in February 2012.

For further details see:
Discussion Paper and Telstra's revised structural separation undertaking
ACCC Media Release

Changes proposed for numbering

The ACMA has released a discussion paper, "Number Variation 2012 – understanding its effect on numbering", seeking comment on three proposed changes to Australian phone numbers. The ACMA's Numbering Work Program is examining Australia's numbering arrangements, including:

• Supplementing the supply of digital mobile numbers, as the current supply of numbers (starting with "04") may be exhausted as early as 2017;
• Supplementing the supply of geographic numbers in areas where the existing supply is expected to be exhausted within 20 years; and
• Removing the geographic sectors around capital cities from the Numbering Plan.

The ACMA has also varied the Telecommunications Numbering Plan 1997, including:

• Removing six service types that are no longer required;
• Removing unused portions of number ranges from six service types with limited use;
• Amending the term "country code;" and
• Some other administrative improvements to the Numbering Plan.

Written submissions on the matters raised in this discussion paper are due by 5.00pm on 17 February 2012.

For further details see:
Discussion Paper
ACMA Media Release

ACCC issues MTAS final access determination

The ACCC released a final access determination (FAD) for the domestic mobile terminating access service (MTAS) following consultation with stakeholders.
 

The MTAS is used by providers of voice calls from fixed line, mobile and IP networks to complete voice calls to end users directly connected to digital mobile networks.  The FAD provides for a reduction in the regulated MTAS rate (previously at 21 cents per minute from 2004, then 9 cents per minute from 1 July 2007 to 31 December 2011), from 6 cents per minute on 1 January 2012 to 3.6 cents per minute on 1 January 2014.  The FAD also includes non-price terms and conditions.  The FAD establishes fall back benchmark prices and non-price terms and conditions for access seekers, with parties still able to negotiate their own commercial agreements.
 

For further details see:
ACCC Media Release

ACCC issues draft final access determination for regulated transmission services

The ACCC has issued a draft final access determination (FAD) for the declared domestic transmission capacity service (DTCS).  For the first time, the ACCC is using an advanced statistical model to determine price terms for the domestic transmission capacity service. The price terms of the draft FAD take a domestic benchmarking approach using a linear regression model, which uses prices on competitive routes to predict the prices that would be expected for declared routes if these routes were priced competitively by the market.  The draft DTCS FAD also includes non-price terms of access and proposes an expiry date for the FAD. 

Submissions on the draft DTCS FAD are due on 27 January 2012, with the ACCC aiming to issue the final DTCS FAD by the end of February 2012.

For further details see:
ACCC Media Release

In August the Federal Court made orders (including for the prominent display of the "click through" icon) and imposed penalties of $85,000 against SMS Global and its Director for misleading consumers by falsely representing that it was endorsed by the government.

For further details see:
ACCC Media Release

ACCC commences inquiry into declaration of wholesale ADSL

The ACCC has issued a discussion paper inviting comment on whether to declare a wholesale ADSL service.  This has arisen from competition concerns in a number of complaints by access seekers that a lack of regulated access to wholesale DSL services has affected their ability to compete with Telstra. The ACCC will consider whether declaration is likely to promote competition, achieve any-to-any connectivity between end-users and encourage efficient investment. A declaration has the effect of requiring an access provider to supply the declared service in accordance with the standard access obligations.
 

Submissions on whether declaration of the wholesale ADSL service will promote the long-term interests of end-users of telecommunication services are due by 5.00 pm on 19 January 2012. The ACCC does not propose to issue a draft decision prior to making a final decision on the declaration inquiry.

For further details see:
Discussion Paper
ACCC Media Release

ACCC removes geographic exemptions for declared fixed line services

The ACCC has completed its public inquiry into the geographic exemption provisions of the Wholesale Line Rental (WLR), Local Carriage Service (LCS), and PSTN Originating Access (PSTN OA) services, and will vary the final access determinations (FADs) for these services to remove the exemption provisions.  The ACCC found there were three key reasons for removing the exemption provisions:

• Uncertainty surrounding the timing and location of the roll-out of the NBN and de-commissioning of the copper network, and increases in the risks associated with investing in copper-based infrastructure that will be redundant on the NBN.
• Telstra remains the main provider of wholesale voice-only services and there is little prospect of a wholesale market developing in voice-only resale services in the exempt areas.
• Telstra's continued dominance in retail markets as well as a number of supply-side constraints significantly limits the effectiveness of retail competition in restraining Telstra's exercise of its wholesale market power.

This decision effectively re-regulates the supply of the WLR, LCS and PSTN OA services in the currently exempt exchange service areas (ESAs). Carriers providing these services will now be required to supply these services in the previously exempt areas at the regulated price and non-price terms and conditions set out in the relevant FADs, when requested by access seekers.  Parties can continue to agree to vary the regulated terms and conditions.  Major CBD areas continue to be excluded from the declarations for WLR and LCS services.
 

For further details see:
ACCC Media Release
Final Report

ACCC takes action against Excite Mobile Pty Ltd

The ACCC has commenced proceedings against Excite Mobile Pty Ltd for false and misleading conduct and unconscionable conduct in providing mobile phone services. The ACCC also alleges that Excite Mobile used undue coercion to attempt to obtain payment for mobile phone services.  The ACCC alleges Excite Mobile made false representations to customers about mobile phone coverage, acted unconscionably in its sales methods, created a complaints handling organisation that deceived consumers into thinking that complaints were being handled by an independent organisation, sent letters to customers falsely representing that the letter was from an independent debt collector, used undue coercion to obtain payment, and made false representations to customers about rights and remedies available to Excite Mobile.
 

The ACCC is seeking declarations, injunctions, pecuniary penalties, orders that the directors be disqualified from managing corporation for five years, and costs.

For further details see:
ACCC Media Release

The 2011-12 Regional Telecommunications Independent Review Committee is conducting a review of telecommunications services in regional, rural and remote Australia.  The previous review led to the introduction of the Digital Regions Initiative which funds innovative projects using broadband applications to improve health, emergency and education services in regional centres.  Submissions for this Review have now closed, and the Committee is due to report back to government with its findings by 5 March 2012.

For further details see:
Minister's Media Release

Telemarketing concerns highlighted in TIO Talks

Following consumer complaints, the TIO is closely monitoring a practice by some telemarketers that can mislead consumers into transferring their services to a new service provider.  The complaints concern telemarketers who represent that they act on behalf of a large provider, in an attempt to induce consumers to unwittingly transfer their services to another company.  The TIO considers that such practices may not comply with legislation and industry codes regarding informed consent and providing full and correct information before a transfer.
 

The TIO is also working with service providers to amend telemarketing scripts to ensure that they are accurate and comply with industry codes of practice and relevant laws, and to improve verification procedures before a transfer is completed.  New complaints about telephone and internet services stabilised in the first quarter of 2011-12 (increasing 0.7% from the previous quarter). However complaints were 22% higher than the same quarter last year.  Complaints about mobile services increased by 7.3%.

For further details see:
TIO Media Release

Supporting arrangements for the supply of Digital Subscriber Line (DSL) Customer Equipment

A review is underway into the Supporting Arrangements for the supply of Digital Subscriber Line Customer Equipment (Guideline G563:2001) to identify whether there is a need to amend the Arrangements.  The comment period closes at 5.00 pm on
3 February 2012.

For further details see:
Call for public comment
Supporting Arrangements for the supply of Digital Subscriber Line Customer Equipment

Unconditional Local Loop Service (ULLS) Network Deployment

The Unconditioned Local Loop Service (ULLS) Network Deployment industry code (which defines the performance requirements for DSL and other technologies on copper access networks) is to be amended. The amendments include:

• Section 5.1 in Part 2 and Table A-2 in Part 1 of C559:2006 has been updated to include current cable types and cable loss values that reflect current industry experience; and
• Unnecessary reference(s) to the network boundary point have been removed.

Comment period closes at 5.00 pm on 12 January 2012.

For further details see:
Call for public comment
Draft Unconditioned Loop Service (ULLS) Network Deployment Industry Code - Part 1
Draft Unconditioned Loop Service (ULLS) Network Deployment Industry Code - Part 2
Draft Unconditioned Loop Service (ULLS) Network Deployment Industry Code - Part 3

Voice frequency performance requirements for Customer Equipment Guideline

The Customer Equipment and Cable Reference Panel is undertaking a review of possible future revisions to the Australian Standard for Voice frequency performance requirements for Customer Equipment, including requirements for wideband codecs, send frequency response mask, the testing the maximum output sound pressure level, phones with amplification for hard-of-hearing, alert ringer signal and the testing of equipment with Automatic Gain Control.   The Acoustic safety for telephone equipment Guideline (G616:2006) is also under review.  Public comment is sought on the revisions, and the comment period closes at 5.00 pm on 3 February 2012.

For further details see:
Call for public comment
Australian Standard - Voice frequency performance requirements for Customer Equipment

Prepaid Calling Card Industry Guideline

A review is underway into whether a need exists to amend the Prepaid Calling Card Industry Guideline.  The comment period closes at 5.00 pm on 27 January 2012.

For further details see:
Prepaid Calling Card Industry Guideline

Call for public comment

Network interface voltage levels

A review is underway into whether the Industry Guideline for Network interface voltage levels should be amended.  The comment period closes at 5.00 pm on 3 February 2012.

For further details see:
Network Interface Voltage Levels Industry Guideline

Call for public comment

NBN key wholesale prices frozen for five years

NBN Co has committed to fixing its wholesale prices for key products for five years in its voluntary Special Access Undertaking, which sets out its 30 year regulatory framework plan to set price and non-price terms and recover rollout fees.  Later increases will also be limited to less half of CPI in order to facilitate real wholesale price reductions over time.  The SAU will be subject to the approval and oversight of the ACCC.  The SAU also provides for the ACCC to settle outcomes where NBN Co and service providers cannot reach agreement on non-price terms not covered in the SAU.
 

The release of the SAU follows the release of NBN Co's Wholesale Broad Agreement (WBA), the twelve month commercial contract setting out terms for telephone and internet service providers who want to operate over the NBN.  The SAU and WBA are designed to provide service providers with certainty on pricing and network access.

For further details see:
NBN Co Media Release

ACMA issues directions to Vodafone

The ACMA has issued directions to two Vodafone companies requiring them to comply with the Telecommunications Consumer Protections Code (TCP Code).  An ACMA investigation found that the companies had failed to classify and analyse complaints in accordance with the TCP Code, failed to provide customer information about network performance issues in late 2010 in a timely manner, and did not have adequate systems in place for the protecting the privacy of customers' personal details prior to January 2011.

For further details see:
ACMA Directions
ACMA Media Release

Next Generation Networks – driving innovative applications and services

The ACMA has released "Developments in next generation applications and services", its fourth report in a series on the pressure on current regulatory regimes due to technological changes.  The report:

• notes that the emergence of next generation networks is leading to new innovative applications and services that are changing the way we interact;
• explores how common accessible broadband infrastructure can assist in the development of next generation applications and services;
• notes that converged network environments and high speed connectivity are facilitating easier adoption of distributed computing applications;
• highlights a number of regulatory challenges including fragmentation of service components across service providers, service initiation agreements and the techniques used to deliver services. 

The regulatory issues identified support the ACMA's recent research paper "Broken concepts: The Australian communications legislative landscape", which examined how convergence has strained many of the legislative concepts that underlie the current communications and media regulatory regime.

For further details see:
Full Report
ACMA Media Release

Australians hunger for choice in communications

The ACMA has reported that in the six months to April 2011, 84% of adults in fixed-line telephone household used three or more communication technologies, compared to 82% in the same period last year.  The report, "Converging communications channels: Preferences and behaviours of Australian communications users", found that Australian continue to embrace communication technologies such as the mobile phone (including smart phones) to complement traditional fixed-line telephony.  57% of adult consumers such a fixed-line telephone, a mobile phone and the internet, and a further 27% also used VoIP for voice calls.
 

89% of adults in fixed-line telephone households used a mobile phone, with smartphone users accounting for 37% of mobile phone users overall. 19% of adults did not have home fixed-line telephone at June 2011, up from 16% at June 2010.  This group also led the way  in the adoption of smartphones, with 50% using smartphones.  74% of smartphone users accessed email via their handsets (compared to 46% of users of other mobile phones). 60% of adult internet users were estimated to have engaged in online social networking activities in the report period.  Email services were the dominant cloud computing services used by consumers, with 68% of Australian adults with internet access using email services such as Hotmail, Gmail or Yahoo!Mail.

For further details see:
ACMA Media Release

Mobile services in Australia surge on many fronts

The ACMA's "Communications Report 2010-11" has found that mobile services in Australia continued to grow in 2010-11.  The report found the continued surge in the number of mobile wireless broadband services and internet services connected via mobile phone handsets contributed to the growth in mobile services. The report found:

• The number of mobile services in Australia increased by 13 per cent since 2010 to reach 29.28 million at June 2011. Mobile handset services increased by 9 per cent to 24.49 million services at June 2011.
• 15.4 million people accessed the internet during the June quarter of 2011 compared to 14.6 million during the June quarter of 2010. 60% of internet users online more than once a day at June 2011 compared to 56% at June 2010. Total data downloaded increased by 76% to 274,202 TB during the June quarter of 2011, with average data downloaded per subscriber increasing by 56% to 25.1GB in the June quarter.  8.6 million Australians accessed social networking sites from home during June 2011, compared to 8.0 million in June 2010.
• Mobile wireless broadband services increased by 39 per cent since 2010 to reach 4.79 million services at June 2011. Mobile phone internet services increased by 43 per cent to reach 9.68 million services at June 2011, while ADSL internet services increased by 7 per cent to reach 4.49 million services in June 2011.  Fixed-line networks carried an estimated 93% of total data downloaded.
• The number of fixed-line telephone services continued to decline, down to 10.54 million from 10.59 million.  An estimated 2.7 million Australians are now without a home fixed-line telephone service, up from 2.3 million in June 2010.  3.8 million Australians were using VoIP at June 2011, compared to 2.9 million at June 2010.  Mobile handset VoIP usage increased by 226% in the same period, up from 274,000 users.

For further details see:
Communications Report 2010-2011
ACMA Media Release