The Telecommunications Act 1997 and associated legislation is the third complete overhaul of Australian telecommunications regulation in less than a decade. It is a milestone in the recent history of institutional and regulatory shifts in the provision of communications services to Australians.
The most fundamental aspect of this shift has been the transition away from provision of communications service by a single government owned company (Telstra), towards competition in telecommunications services.
The transition to competition has brought with it a heightened concern for consumer protection and the provision of services to people out of metropolitan centres. Among the important consumer protection measures are the safeguards set out in the Consumer Protection and Service Standards Act 1999. The Telecommunications Services Inquiry (the Besley Inquiry) in 2000 pointed to some of these issues. The report of that Inquiry, The Besley Report, has been the basis for new Commonwealth programs designed to improve aspects of telecommunications services, especially to regional areas. In late 2002 a further review of Telstra's services was conducted (the Regional Telecommunications Inquiry). The government has indicated that it will respond to the report of the Inquiry (The Estens Report) in 2003.
Some aspects of telecommunications regulation and consumer protection issues are outlined below. A comprehensive guide to this subject is the Centre's recently revised manual, Australian Telecommunications Regulation: the Communications Law Centre Guide (2nd edition, November 2001).
Telecommunications - the framework for regulation
Regulation of telecommunications is governed mainly by the Telecommunications Act 1997, the Radiocommunications Act 1992, and the Trade Practices Act 1974.
The major regulatory bodies are the Department of Communications, Information Technology and the Arts (DCITA), the Australia Communications Authority (ACA), the Australian Competition and Consumer Commission (ACCC), the Australian Communications Industry Forum (ACIF), and the Telecommunications Industry Ombudsman (TIO).
There are two basic distinctions applied in the regulation of communications services. First, there is a distinction between guided or wired forms of communications (for example, residential fixed telephone services provided over copper wires) and unguided or wireless forms of communication using radiofrequency spectrum (such as mobile phone services).
Second, there is a distinction between the way that these services are provided to consumers: suppliers are known as either carriers or as service providers. Carriers own their own infrastructure (intercity fibre cables, switches, exchanges, cables and wireless connections to customers' premises) and are licensed under the Telecommunications Act. Service Providers offer services to customers using capacity they buy from the carriers. Often, services will be supplied using a mix of a company's own capacity and capacity bought from other companies.
Everyone who supplies services to 'end-users' is a 'service provider', including those who are also licensed as 'carriers'. Most users of the radiofrequency spectrum require a licence from the ACA under the Radiocommunications Act. The ACA has established a forward program for allocation of spectrum.
The regulatory framework established by the Telecommunications Act and the Trade Practices Act attempts to ensure that different carriers can connect to each other's networks and that organisations can gain access to other organisations' facilities or services. The Telecommunications Act sets out requirements for access to facilities such as space in exchanges or on mobile communications towers. These are the 'physical' aspects of access and interconnection. The TPA establishes a scheme for access to services based on commercial negotiation and supported by a process of arbitration.
Telecommunications - Consumer Protection
Most of the consumer protection measures that were introduced with the transition to competition in the 1990s are contained the Telecommunications Act 1997 and the Telecommunications (Customer Protection and Service Standards) Act 1999. The major safeguards are set out below.
Legislation enshrines the objective that regulation must promote the 'long-term interests of end users' (known as the LTIE test). This is not an exclusive test, and is supplemented by other objectives relating to economic efficiency, but it is an important guiding principle in the regulation of telecommunications services in Australia.
The Universal Service Obligation (USO) and the Digital Data Service Obligation (DDSO) require that a standard telephone service (usually a fixed line telephone), a digital data service (usually an ISDN service with a data transmission rate of 64 kilobits per second), and payphones are reasonably accessible to all Australians regardless of where they live or carry on business.
The statutory Customer Service Guarantee (CSG) requires suppliers of the standard telephone service to make rebates to customers where they fail to meet appointments or fail to meet certain time frames in installing or repairing services.
Price controls have been imposed on Telstra's services charges: from May 2000 the local call rate was reduced to 22 cents with payphones at 40 cents. Recent changes to the price caps regime have been desgined to assist low income consumers.
All companies offering a 'standard telephone service' are required to offer an untimed local call option to residential and business customers in standard zones and untimed local 'data' calls to residential customers.
In mid 2001, the Government announced a range of initiatives in response to The Besley Report:
- untimed local calls within extended zones and between adjoining extended zones;
- untimed local call rates to access at least one Internet Service Provider;
- 'preferential' rates for calls between residents in extended zones and residents in certain Community Service Towns;
- untimed local calls for residents of outer-metropolitan suburbs which had always been subject to STD rates when calling the CBD and inner suburbs;
- a new capped call rate of 99 cents for three hour regional calls.
Customers must be provided with free access to an emergency number, which relays calls to police, fire and ambulance services, to operator services, and to directory assistance.
Telephone customers are also entitled to 'pre-select' a preferred telephone company for the following services:
- national long distance calls,
- international direct dial voice calls,
- specified operator assisted calls,
- international ring back pricing code calls,
- fixed to mobile calls.
Standard telephone service customers are entitled to an itemised bill for timed calls (long distance and international) and can also ask for an itemised bill for untimed (local) calls, although a charge may be imposed for this.
Mobile phone customers (as well as fixed line customers) are now able to change service providers and take their existing number to their new provider - this is known as Mobile Number Portability and commenced on 25 September 2001.
Specifications are made in relation to customer equipment and carriers have established special programs that will help meet some of the needs of consumers with disabilities.
A dispute resolution service also exists. The Telecommunications Industry Ombudsman (the TIO) is established by legislation and provides consumers with a forum for complaints and resolution of problems with service providers.
Resources
Regional Telecommunications Inquiry (September 2002)
Telecommunictaions Services Inquiry 2000
ACA Investigation into the Provision and Maintenance of Telephone Services to the Boulding Family
Productivity Commission Report on International Telecommunications Market Regulation
Productivity Commission Report: Telecommunications Competition Regulation
Productivity Commission Inquiry: Telecommunications Equipment, Systems & Services
ACCC: Resolution of Telecommunications access disputes - a draft guide
ACCC: Discussion Paper on the Future of Interconnection Arrangements in Australian Telecommunications Networks
Senate Environment, Communications, Information Technology and the Arts Committee (reports & inquiries)
ACA - Telecommunications Industry Reports
Australian Communications Industry Forum (ACIF)
ACIF Publications list
Legislation
Primary legislation
Telecommunications Act 1997
Australian Communications Authority Act 1997
Radiocommunications Act 1992
Telecommunications (Transitional Provisions and Consequential Amendments) Act 1997
Trade Practices Act 1974
Trade Practices Amendment (Telecommunications) Act 1997
Telecommunications (Consumer Protection and Service Standards) Act 1999
Ancillary legislation
Telecommunications (Universal Service Levy) Act 1997
Telecommunications (Carrier Licence Charges) Act 1997
Telecommunications (Numbering Charges) Act 1997
Telecommunications (Carrier Licence Fees) Termination Act 1997; Act Repealed
Radiocommunications (Transmitter Licence Tax) Act 1983
Radiocommunications (Receiver Licence Tax) Act 1983
Radiocommunications (Spectrum Licence Tax) Act 1997
Radiocommunications Taxes Collection Act 1983
NRS Levy Imposition Act 1998
Links
Australian Communications Authority (ACA)
Australian Communications Industry Forum (ACIF)
Australian Competition & Consumer Commission (ACCC)
Australian Telecommunications Users Group
Department of Communications, Information Technology, & Arts (DCITA)
Telecommunications Ombudsman
Telecommunications Society of Australi
Communications & Media Law Association (CAMLA)
Telephone Information Services Standards Council (TISSC)
Australian Media Law and policy Bibliography (Holding Redlich)
Parliament of Australia - Media & Communications
Australian Policy Online (Media Communications & Cultural policy)
Consumers telecommunication Network
Small Enterprise Telecommunications Centre Limited
Australian Consumers Association
Standards Australia: Telecommunications, Audio & Visual
Publications