Telecommunications Regulatory Update - October 2011

Welcome to our summary of Australian regulatory news for October 2011.

Rapid changes and innovations are at the heart of the communications industry. This publication keeps you informed of the latest regulatory developments affecting the telecommunications sector in Australia.

New draft Telecommunications Consumer Protection Code

A revised draft of the Telecommunications Consumer Protections Code has been released for public comment. The new draft Code includes:

• changes to unit pricing which enables consumers to compare mobile phone pricing plans for calls, data and message services before they buy;
• tighter controls regarding complaints handling;
• the implementation of further restrictions on advertising aimed at avoiding misleading consumers;
• the implementation of "spend management tools";
• the establishment of a new independent Communications Compliance body; and
• the imposition of new obligations on suppliers in relation to vulnerable customers and meeting customers' needs.

When the draft Code is finalised and approved by the Communications Alliance Board it will be submitted to the ACMA for registration. Submissions will be accepted until 5pm on 25 November 2011.

For further details of the draft Consumer Protection Code see:

Communications Alliance Media Release
Telecommunications Consumer Protections Code Explanatory Statement
Draft Telecommunications Consumer Protections Code

Review of telecommunications retail price controls

The Hon Senator Stephen Conroy has released a discussion paper for the review of telecommunications retail price controls. Retail price controls for fixed-line telecommunications services are regulated under the Telecommunications (Consumer Protection and Service Standards) Act 1999 and currently only apply to Telstra. Price controls are applied to "baskets" of fixed-line services, such as monthly line rental and connection fees, and generally only permit price increases in line with CPI movements. The cost of untimed local calls for residential and payphone services are set at 22 cents and 50 cents respectively.

The review is being undertaken because of recent significant developments including:

• the NBN and establishment of NBN Co Limited;
  the Telecommunications Legislation Amendment (Competition and Consumer Safeguards) Act 2010 which facilitates the separation of Telstra;
• proposed reforms to the Universal Service Obligation (USO) for the transition to the NBN environment including the establishment of the Telecommunications Universal Service Management Agency (TUSMA); and
• Definitive Agreements between Telstra and NBN Co.

The current price control arrangements are due to expire on 30 June 2012. Submissions in response to the discussion paper will close on 18 November 2011.

To view or download a copy of the Retail Price Controls Review Discussion Paper click here. For further details see the Minister's Media Release and the DBCDE Media Release.

The ACMA has released a paper outlining its intention to update Australia's telephone numbering plan as a result of submissions to the Numbering Work Program. Numbering: Calls to freephone and local rate numbers — The way forward proposes to vary the Numbering Plan so that calls from mobile phones to freephone (1800) numbers will be free of charge to the caller and calls from mobile to local rate (13/1300) numbers will be limited to the cost of a local call from a fixed telephone line. The paper is a first step in a wider package which is seeking formal consultation on amendments to the Numbering Plan and is aimed at:

• increasing flexibility and efficiency in geographic telephone numbering;
• increasing Australia's mobile telephone number capacity to meet future demand; and
• reducing red tape through the removal of out of date or unused services and technologies.

The ACMA invites written submission from the public and industry in relation to the paper with submissions closing on 30 November 2011.

For further details see the ACMA Media Release or to view or download the Numbering Plan Consultation Papers click here.

ACMA releases annual report for 2010/11

The ACMA has released its annual report for 2010/2011. The report provides an overview and evaluation of the work of the ACMA over the past year, including its Reconnecting the Customer Enquiry, activity in relation to codes and consumer complaints, regulatory activity related to the implementation of the National Broadband Network, Spam and Do Not Call Register violations, the Convergence Review and Numbering Review, issues related to digital switchover, spectrum management initiatives and cybersafety initiatives.

To view or download the ACMA annual report for 2010/11 click here.

ACMA releases research into expectations of media content

The ACMA has released a research paper entitled Digital Australians — Expectations about media content in a converging media environment which examines the impact of digital media technologies on Australian's attitudes to, and expectations of, media content. The ACMA has found that the majority of Australians expect standards to apply uniformly across different platforms including print, broadcast and online mediums. While Australians are pragmatic about the limited capacity to regulate internet content, the ACMA has found that the internet is expanding the media experience for many members of the community. The ACMA's research found high levels of online news use by all age groups, including a focus on video-sharing sites such as YouTube and social media sites such as Facebook. Concerns remain, however, about online privacy and safety and keeping up with emerging technology.

The papers findings will contribute to the ACMA's Convergence Report.

To view the ACMA's media release of 20 October click here.

12 month national roll out plan for NBN

NBN Co has released a 12 month construction outlook plan listing communities where the NBN rollout will commence. 28 new locations have been announced with approximately 485,000 premises affected. The 12 month schedule will be updated on a quarterly basis to include additional locations and a three year rollout plan will be announced in early 2013. It is expected to take an average of 12 months from the start of rollout in a given area for individuals be able to access and use high-speed broadband using the NBN.

For further details see the NBN Media Release of 18 October.