Telecommunications Regulatory Update - February 2012

The ACCC is seeking comment on a range of key issues, including:

• The scope for independent review during the proposed term of the SAU, including of price related matters;
   
• The interaction between the SAU and NBN Co's Wholesale Broadband Agreement, particularly relating to the proposed non-price commitments; and
   
• Mechanisms for establishing service levels, setting prices for new products and ensuring efficient investment.

The ACCC intends to hold a multilateral industry forum to consider the key issues associated with the SAU in mid-April 2012.

Submissions will be received until 5 p.m. on 30 March 2012.

For further details see:
ACCC Media Release
NBN Co Special Access Undertaking

Communications Alliance submits revised Telecommunications Consumer Protections Code
 

The Communications Alliance has submitted a revised Telecommunications Consumer Protections Code to the ACMA for approval and registration as a new industry code. The Code has been amended to include broader and stronger consumer protections across all elements of  telecommunications services to consumers and small businesses.  Features of the revised Code include:

• Improved pre-sale product information, including a 'summary of offer' document for consumers;
   
• Unit-pricing in text advertisements and online so that consumers can understand 'included value' packages and plans;
   
• Improved expenditure management tools, including usage notifications for voice, SMS and data, to assist consumers in managing their spending and prevent 'bill-shock';
   
• Stronger controls on product advertising and phase-out of the term "cap" for non-hard cap plans;
   
• Establishment of a new independent body, Communications Compliance, to monitor and ensure industry compliance with the new Code;
   
• Strengthened complaint-handling rules, complaint resolution deadlines and easier tracking of complaint progress by consumers;
   
• New bill content rules, reduced back-billing periods and free consumer access to 24 months of prior billing data;
   
• New obligations regarding financial hardship, improved protection for vulnerable consumers and stronger rules for customer transfer; and
   
• More explicit promotion of the TIO as an alternative dispute resolution mechanism by providers.

For further details see:
CA Media Release
Telecommunications Consumer Protection Code

ACCC declares wholesale ADSL

The ACCC has announced that it has 'declared' the wholesale ADSL service under section 152AL of the Competition and Consumer Act 2010 in order to promote the long-term interests of end-users of fixed-line broadband internet services.  The declaration is designed to remove impediments to ISPs accessing Telstra's ADSL network on efficient terms.

The ACCC has also commenced an inquiry into the making of a final access determination in relation to the wholesale ADSL service, which will consider such things as:

• The appropriate structure and pricing levels for the wholesale ADSL service;
   
• Which access terms should be addressed in the final access determination, and how they should be addressed; and
   
• Whether the application of the final access determination should be limited  to certain providers or to certain geographic regions.

An interim access determination has been made setting out terms and conditions of access for the next 12 months, including the monthly per-user access charge and the monthly charge for data aggregation.  The prices have been set using a Retail Minus Retail Cost methodology which calculates wholesale rates based on Telstra' retail prices, minus costs incurred in transforming network access into retail services.

Submissions on the final access determination will be received until Friday 30 March 2012.

For further details see:
ACCC Media Release

ACCC declares non-NBN local bitstream access service and begins inquiry

The ACCC has declared the local bitstream access service to be used by retail service providers (RSPs) to supply broadband services to end-users, primarily in new housing estates served by fibre networks other than the NBN.

The declaration will apply to non-NBN 'superfast' telecommunications networks, which are defined as having a download transmission rate of more than 25 megabits per second.  The declaration does not apply to mobile, wireless or satellite networks and is intended to cover the 'last mile' of fibre to residences and small businesses.

The service will only apply to networks built or upgraded after 1 January 2011 and will require wholesale service providers to supply the service to RSPs under the standard access obligations on request.  The local bitstream access service declaration will not expire, cannot be varied and cannot be revoked.  The declaration is expected to come into force on 13 April 2012 or an earlier date by proclamation.

The ACCC has released a discussion paper on access terms for the service, and is seeking submissions on:

• The appropriate pricing methodology or price for the service;
   
• The duration of the final access determination; and
   
• What non-price terms and conditions should be included in the final access determination.

The access determination will provide default terms of access to a regulated service that will apply if the parties are unable to agree on commercial terms.
 

Submissions will be received on the final access determination until 23 March 2012.

For further details see:
ACCC Media Release

Competition limits for digital dividend auction

The Minister for Broadband, Communications and the Digital Economy has directed the ACMA to determine procedures to impose competition limits on the sale of spectrum in the upcoming digital dividend auction.  Competition limits include 2 x 20 MHz in the 700 MHz band, 2 x 40 MHz in the 2.5H GHz band and a limit of one purchase per person in each band. Bidders will be able to bid on the technically optimal amount of spectrum in both bands.

These limits are intended to introduce a level playing field for the likely participants in the auction, being Telstra, Optus and Vodafone Hutchison Australia, without precluding potential new entrants. 

For further details see:
DBCDE Media Release

New instruments for the reissue of spectrum licences

The Minister for Broadband, Communications and the Digital Economy has announced the release of a class of services determination and a direction on pricing which will allow the ACMA to reissue spectrum licences to incumbent licence holders. The class of services determination identifies mobile voice and data, wireless broadband and satellite services in certain spectrum bands and the direction on pricing prices the spectrum used for these services.

"This decision has involved a careful evaluation of how the public interest is served by allowing renewal of current licences, as well as identifying appropriate pricing for renewed spectrum." The Minister said.

The ACMA will examine the licences to determine whether they have been used in the delivery of services specified in the instruments and subsequently eligible for reissue.

For further details see:
DBCDE Media Release
Expiring 15 year spectrum licences

Deployment of Mobile Phone Network Infrastructure Industry Code to be revised

The Mobile Phone Network Infrastructure Revision Working Committee has announced that it will revise the Deployment of Mobile Phone Network Infrastructure Industry Code (ACIF C564:2004).

The revision process will focus on:

• Consultation and notification with local communities and councils;
   
• Means of notification to stakeholders;
   
• Additional information such as technological changes, permits, compensation, and rights; and
   
• Updates to information such as the ARPANSA EME Report Format and RF Warning Signs.

Communications Alliance sought comments for a review of the Code in 2010 and used the issues raised as reference for the Code revision.

The Mobile Phone Base Station Deployment Code (C564:2011) has also been submitted to the ACMA for registration.  Prior to registration by the ACMA the Deployment of Mobile Phone Network Infrastructure Industry Code (C564:2004) remains the registered Code in force.
 

For further details see:
CA Media Release
Deployment of Mobile Phone Network Infrastructure Industry Code

Review of Customer Requested Barring guideline 

The Communications Alliance has announced it is reviewing the Customer Requested Barring guideline (G612:2003). This guideline defines the customer requested blocking of access from their  telephone service to a Carrier's or a Carriage Service Provider's service offering.

The guideline applies to barring which is provided for in Carriers' networks but does not apply to barring set by a customer in their own terminal equipment or virtual private network provided by a Carrier or Carriage Service Provider.

Comments will be accepted until 5.00 P.M on Friday 30 Mach 2012.

For further details see:
Documents under Review
Customer Requested Barring guideline

ACCC enforcement priorities released

The ACCC has outlined its enforcement priorities, including a renewed focus on protecting vulnerable consumers, such as older Australians and geographically isolated Indigenous Australians.  The ACCC will make full use of the changes in the Australian Consumer Law and intends to work more closely with the states and territories.

2012 has been flagged as a busy year for telecommunications with the establishment of regulatory underpinnings for operation of the NBN and a continuing focus on consumers so that the increasing complexity of products does not lead to greater confusion.

For further details see:
ACCC Media Release

Businesses warned for failing to comply with Spam Act

The ACMA has issued a formal warning to Select Print Solutions and SThree Australia for breaches of the Spam Act. The ACMA has found that both companies sent marketing messages without consent and SThree also failed to include information on how to unsubscribe in the marketing messages.  The companies had failed to rectify their practices following informal warnings from the ACMA.

The ACMA has highlighted its e-marketing blog which provides guidance to business about the importance of taking action if contacted by the ACMA in relation to spam.  The blog is part of the ACMA's "Successful e-marketing...it's about reputation" campaign addressing email spam.

For further details see:
ACMA Media Release

ACMA enforcement action list

Complaints continue to reduce from record levels

New complaints to the TIO have fallen, with the last quarter of 2011 being the lowest quarter for the year.  Complaints levels were still higher than the same period in 2010.

Complaints about mobile services accounted for 67 percent of new TIO complaints, down 4.3 percent from the previous quarter but up 35.3 percent from the same quarter in 2010.  Complaints about credit management issues, often arising from financial over-commitment and inadequate tools to measure or manage usage and spending, continue with complaints increasing by 63.8 percent in 2011.

Complaints about transfer and connection delays for mobile services increased significantly in late 2011 with transfer complaints up more than 135 percent in the final quarter. The TIO has commenced enquiries into a potential systemic issue relating to mobile number porting given that there is an  industry Code in effect that supports mobile number portability.

For further details see:
TIO Media Release

Debt collection practices in the telecommunications industry

The TIO has released information on debt collection in the telecommunications industry, including service providers' obligations and common complaints received by the TIO. These complaints include:

• Demands for payment by collections agent where the debt has already been paid, is in dispute, or where the consumer was unaware of its existence;
   
• Collections agents acting in a harassing or threatening manner, including threatening legal action where the consumer feels forced to pay even though they are disputing the debt;
   
• Debt collectors refusing to accept a reasonable payment arrangement and instead demanding a lump sum payment which the consumer cannot afford;
   
• Consumers being default listed over a debt, even though they dispute it or have paid the debt; and
   
• Debt collector continuing to pursue collection of the debt even after the service provider has recalled the debt (suggesting a lack of process or communication between service providers and debt collectors).

5,430 new complaints were received by the TIO in 2010-11 about collections agents continuing to pursue payment of a debt despite being advised of it being in dispute, an increase of 2.2 per cent. 494 complaints were received about collections agents using harsh, harassing or otherwise offensive methods to recover payment of a telecommunications debt, an increase of 42.8 percent.

For further details see:
TIO Media Release

Small businesses increasingly turning to the TIO

The TIO has released information on the increasing use of their services by small businesses. The TIO manages complaints from small business alongside consumer complaints on the basis that small businesses are less likely to have the resources to pursue a complaint against a service provider through the legal system. 

Small business complaints to the TIO were up 52 percent in 2010-11, representing 13 percent of all new complaints in the latter half of 2011. The TIO believes that the increase in complaints may be due to the May 2010 increase in the TIO's binding monetary limit powers from A$10,000 to A$30,000, and powers to make recommendations increased from A$50,000 to A$85,000. Common complaints from small businesses included: 

• Inadequate or incorrect advice about their service by customer service representatives;
   
• Poor coverage and call drop-outs on mobile phone services;
   
• Service providers not acting on promises to resolve complaints;
   
• Inadequate or inaccurate information at point-of-sale about terms and conditions;
   
• Bill disputes; and
   
• Inadequate spend management tools causing financial difficulties

When determining whether a complainant is a 'small business' the TIO will take into account such factors as the annual turnover of a business (under A$3 million), number of employees (20 or fewer), the nature of the business, the issue in dispute and the ownership structure or management of the business.

For further details see:
TIO Media Release

Telecommunications in regional and remote Australia

The TIO has announced that new research shows regional and remote consumers face a range of telecommunications challenges, including distance, lack of awareness of rights and limited information on new technologies.  24.6 percent of new complaints received by the TIO in 2010-11 were received from regional and remote consumers.  The most common complaints were in relation to customer service, complaint handling and billing and payment issues, while there was also an increase in complaints about mobile phone faults, credit management and contracts for mobile services. 

These findings have been included in the TIO's submission to the Regional Telecommunications Review being conducted by the 2011-12 Regional Telecommunications Review Committee commissioned by the DBCDE.

For further details see:
TIO Media Release  

Calls for fast global deployment of next-generation IMT-Advanced mobile networks

The International Telecommunications Union Secretary-General has called on mobile operators worldwide to move quickly to deploy IMT-Advanced-compliant mobile broadband networks, and has urged governments to cut or abolish onerous taxes on ICT equipment and services that could affect the future growth of the mobile sector. The ITU's Radiocommunication Assembly endorsed two technologies in January to form the basis of IMT-Advanced next generation high-speed cellular broadband: LTE-Advanced and WirelessMAN-Advanced, both of which are capable of supporting speeds of 1 Gbit per second while stationary and 100 Mbit per second while in motion. 

The next World Conference on International Telecommunications which is due to take place in December 2012 will also review the International Telecommunication Regulations, a global treaty not updated since 1988.  The Secretary-General has warned of the risk of an increased 'infrastructure gap', with internet data volumes increasing at rates faster than the infrastructure needed to carry it.

For further details see:
ITU Media Release

153 countries sign international treaty governing spectrum and satellite orbits

The World Radiocommunications Conference in Geneva has concluded with amendments to the international treaty which governs the use of radio-frequency spectrum and satellite orbits.

Issues addressed by the Conference included:

• Further spectrum allocations to the mobile service to facilitate the development of terrestrial mobile broadband applications in the frequency band 694 – 790 MHz;
   
• Improved due diligence and detailed information on the identity of the spacecraft used for the operation of the frequency assignments to foster long term access and development of the Broadcasting Satellite Service in the 21-4-22 GHz band in Regions 1 and 3; and
   
• New technologies such as intelligent transport systems to support or supplement advanced public protection and disaster relief applications.

For further details see:
ITU Media Release

OECD promotes competition as key to cutting excessive international mobile roaming charges

The OECD's Council on International Mobile Roaming Services has set out a series of recommendations that governments should adopt to encourage effective competition in international mobile roaming markets, raise consumer awareness and ensure fairer prices.  The Council has found that while domestic markets are competitive, roaming prices for those travelling abroad tend to be excessive compared to the costs actually incurred by operators.
Recommendations made by the Council include:

• Increased transparency on roaming prices;
   
• A financial limit on data roaming services; and
   
• The removal of barriers that prevent mobile virtual network operators from accessing wholesale mobile services on fair, reasonable and local terms and conditions.

If these measures are unsuccessful in promoting competition and reducing prices, the Council believes that governments should consider price regulation of wholesale roaming services by means of bilateral or multilateral wholesale agreements with mutually established price caps.

For further details see:
OECD Media Release
Information, Computer and Communications Policy