Operational Requirements

The Government announced on 4 June 2001 that Telstra was the successful tenderer for the Commonwealth Government's $150 million project to extend untimed local calls and a range of new communications services to remote Australia, comprising about 80% of the landmass.

On 23 April 2001, the Government announced that it had entered into an agreement with Vodafone to provide continuous mobile phone coverage along some 9,500 kilometres of Australia's major highways (Australian Capital Territory, New South Wales, Queensland, South Australia, Tasmania and Victoria). The $25 million being provided by the Commonwealth for this project was allocated through a competitive tender process.

On 1 July 2001, the Government commenced a trial multi-provider universal service obligation (USO) contestability model, involving administratively set subsidies, in two pilot areas.　 USO contestability aims to provide equal opportunity for competing carriers, improve outcomes for consumers in terms of choice, quality and price and encourage investment in regional areas.

In March 2001 the Government completed the auction of spectrum for 3G mobile phone services.　 Spectrum was allocated to six successful bidders.

The Agreement with Telstra provides for the introduction of the core telephony pricing services from 31 July 2001 and the commencement of rollout of the two-way satellite-based Internet service soon afterwards.　 Subsequently various enhanced services will become available, such as video conferencing.

The Productivity Commission released its draft report on competition regulation in Australia's telecommunications sector (under Section 151CN of the Trade Practices Act 1974 which requires a review of the operation of Part XIB of the Trade Practices Act - that part which deals with anti-competitive conduct in the telecommunications industry) in March 2001.

The independent Telecommunications Service Inquiry (TSI), established by the Government in March 2000 to assess the adequacy of telecommunications services in all areas of Australia, reported to the Government on 30 September 2000.

The TSI found that while Australians generally have adequate access to a range of high quality basic and advanced services comparable to the leading information economies of the world, a significant proportion of rural and remote consumers have concerns about key aspects of their services.　 The TSI made 17 policy recommendations.

The Government responded to the report on 15 May 2001, detailing a package of initiatives to address concerns identified by the TSI and addressing all of the report recommendations.　 The Government has allocated $163.1 million to improve services further in rural and remote areas, including $88.2 million for extending mobile telephone service coverage, $52.2 million for a National Communications Fund to assist significant telecommunications projects in the education and health sectors in rural areas and a $12 million contribution to a $50 million joint venture with Telstra to improve Internet access, particularly data speeds.

Regulatory changes to consumer safeguards, including the legislated universal service obligation and customer service guarantee were also announced by the Government.

There are initiatives to improve mobile coverage - under Telstra Service Inquiry (TSI) and Networking the Nation (NTN).

Australia will pursue reform through multilateral negotiations in the ITU and WTO to reduce the price of basic international telecommunications to commerce and consumers through the application of free trade principles.

Subject to evaluation of the pilots, it is envisaged that the contestability model will be implemented in further areas.

Under the Government’s action plan released on 15 May 2001, in response to the report of the independent Telecommunications Services Inquiry (established by the Government in March 2000 to examine the adequacy of telecommunications services across Australia) the Government announced a package of initiatives which includes further strengthening of the Customer Service Guarantee to reduce new service connection times.

The Productivity Commission will release its final report on competition regulation in Australia's telecommunications sector in September 2001.

The Government’s targeted funding initiatives in response to the Telecommunications Service Inquiry (TSI) will be phased in over the next 4 years.　 The regulatory changes will be introduced in 2001-2002.　

Mobile number portablility is due to be introduced on 25 September 2001.

Licensing and Qualification Requirements of Service Providers

No improvements implemented since the last IAP.

The main entities regulated by the Telecommunications Act 1997 are carriers and service providers.

Carriers

A carrier is the holder of a carrier licence granted under the Act. There are no restrictions on the number of carrier licences which may be issued and any corporation, partnership corporation or public body may apply for a licence.

Carriers must be individually licensed by the Australian Communications Authority (ACA). While applicant requirements (including the submission of an application fee) are relatively low, a licence cannot be issued to an applicant until their industry development plan is approved by the Minister.

Carriers are obliged to comply with licence conditions. These include obligations to comply with: the Telecommunications Act (including, for example, contributing to the net losses incurred by universal service providers in fulfilling the universal service obligation; certain commitments made in　 their industry development plan; and the telecommunications access regime and related facilities access obligations.

The Minister for Communications and Information Technology and the Arts can impose further licence conditions on individual carriers, classes of carriers or all carriers.

Service providers

There are two types of service providers - carriage service providers and content service providers.　 A　 carriage service provider, in general, uses a carriage service to supply, or proposes to use a carriage service to supply, carriage services to the public using network units owned by a carrier (for example phone or Internet access services). Carriage service providers and Internet Service Providers must become members of the Telecommunications Industry Ombudsman (TIO) scheme.

A content service provider is a person who supplies, or proposes to supply, content services to the public (for example a pay TV service).　 Where a carrier is engaged in these activities, they are also considered to be a service provider.

The ACA has limited powers to impose additional service provider rules if this　 becomes necessary.　　 All service providers, both carriage and content, have equal rights under　 the　 telecommunications access regime (which means they can request and be supplied with services necessary to enable them to supply their own carriage or content services).　 Service providers who supply the standard telephone service must comply with statutory rules in relation to directory assistance, untimed local calls and other measures.

Foreign Entry

No improvements implemented since the last IAP.

Except for Telstra, there are no industry-specific limits on foreign investment in new carriers.　 However, the standard provisions of the Foreign Acquisitions and Takeovers Act 1975 concerning foreign control apply (see Operational Requirements).　 In June 1999, the Australian Parliament passed the Telstra　 (Further Dilution of Public Ownership) Act which repealed legislation requiring the Government to retain two-thirds of the equity in Telstra Corporation, and authorises the sale of a further 16.6% of its equity in Telstra.

No further improvements planned.

Discriminatory Treatment/

MFN

No improvements implemented since the last IAP - not required. (see Current Entry Requirements)

Australia made commitments consistent with current domestic regulations in the WTO Agreement on Basic Telecommunications, including adopting the Regulatory Principles of the WTO Reference Paper.