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Telecommunications Reform and Effects of Competition [ [Litratur Review Ref-Sr 12-20]
Telecommunications Reform Package BIRRR Submission · 2017-02-08 · 4 1. OVERVIEW BIRRR...
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1 Department of Communications and the Arts: Telecommunications Reform Package Submission by Better Internet for Rural, Regional & Remote Australia (BIRRR) 3 rd February, 2017 Prepared by: Kristy Sparrow and Julie Stott Contributions from John Kitchener and Amanda Salisbury * This submission was prepared in good faith by a voluntary team. Please address any queries to [email protected]
Transcript of Telecommunications Reform Package BIRRR Submission · 2017-02-08 · 4 1. OVERVIEW BIRRR...
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DepartmentofCommunicationsandtheArts:
TelecommunicationsReformPackage
SubmissionbyBetterInternetforRural,Regional&RemoteAustralia(BIRRR)
3rdFebruary,2017
Preparedby:KristySparrowandJulieStottContributionsfromJohnKitchenerandAmandaSalisbury*Thissubmissionwaspreparedingoodfaithbyavoluntaryteam.Pleaseaddressanyqueriestobirrraus@gmail.com
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AboutBIRRRTheBetterInternetforRural,Regional&RemoteAustralia(BIRRR)groupwasfoundedin2014duetoalackofinformation,advocacyandsupportforbushbroadbandconsumers.Inparticular,thoserequiringequitabletelecommunicationsfortheirbusinessesandeducationoftheirchildren.Therearenowover8,800active,engagedBIRRRmembersfromeverystateandterritoryofAustralia.Rural,RegionalandRemote(RRR)consumersareextremelyreliantoneffectivecommunications,duetothenatureoftheirgeography,andthisalsoheightenstheneedforeffectiverepresentation.TheBIRRRteamhasundertakenextensivelarge-scaleresearchonregionaltelecommunicationneeds.Previouslytherehavebeenfewstudiesandlimitedresearchintothisspecificconsumergroup.
Contact:KristySparrowChiefAdministrator935MaldenRoadAlphaQLD4724Phone:0749853482Email:[email protected]
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TableofContents1. OVERVIEW....................................................................................................................................42. QualifyingServiceDefinitions..............................................................................................63. StatutoryInfrastructureProviderRegime.....................................................................83.1. StatutoryInfrastructureProviders(SIP)mustberegulatedtoprovidesetconsumerstandards;thiswillensureprotectionofconsumerneeds............83.2. nbnTMpolicyanddirectionmustbereviewed...................................................103.3. TheStatutoryInfrastructureProvidershouldstayunderGovernmentcontrol,withaseriousfinancialcommitmenttodeliveringequitablebroadbandservicestoRRRareas.........................................................................................113.4. IfaSIPiscommissionedwithprovidingVoiceservices,thesemustretainexistingUniversalServiceObligations(USO)....................................................12
4. RegionalBroadbandScheme(RBS).................................................................................135. Conclusion..................................................................................................................................14
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1. OVERVIEWBIRRRappreciatestheopportunitytorespondtotheTelecommunicationsReformPackage,2017.Equityofserviceisessentialforrural,regionalandremote(RRR)consumers,irrespectiveofwheretheychoosetoworkandlive.ThecontributiontotheAustralianeconomymadebyRRRresidentsandbusinessesfaroutweighsthecurrentinfrastructureexpenditureontelecommunicationsfortheseregions.ToensureRRRproductivityandgrowthandtokeeppeoplelivingintheseareas,broadbandservicesmustbeaccessible,affordable,reliableandequitable.EssentialservicesinRRRareasarealreadylacking.Mentalandphysicalhealth,education,businessproductivity,tourism,economicgrowthandinnovationwouldallbenefitfromimprovedtelecommunications.SubsequentlyBIRRRsupportsthepurposeoflegislationintheTelecommunicationsReformPackagetoestablishnbnTMasthedefaultStatutoryInfrastructureProvider(SIP)andtoestablishaRegionalBroadbandScheme(RBS).BIRRRissupportiveoflegislationthatwillensureregionalAustralianshaveaccesstobroadbandinfrastructurethatmeetstheirneeds,notonlyinregardstospeedbutalsointermsofreliability,QualityofService(QoS),accessibilityandaffordability.WearealsosupportiveoftheneedforaUniversalServiceObligation(USO)thatistechnologyneutralandprovidesaccesstobothvoiceanddataandunderstandthattoachievethis,thereneedstobeasustainablefundingmodel.BIRRRislargelysupportiveofthelegislativechangesintheTelecommunicationsReformPackage.Currentlegislativerequirementsdonotprotectconsumersandhavedeficienciesthatrestrictserviceprovisionandinvestmentintelecommunications.
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TosafeguardconsumerstheTelecommunicationsReformPackagemustaddressthefollowingkeypoints.BIRRRbelievesthesearenotsufficientlymandatedinexistingordraftlegislation.
1. ATelecommunicationsUniversalServiceObligation(TUSO)mustbetechnologyneutralandprovideaccesstoaffordable,reliable&equitablevoiceandbroadbanddataservicesforallAustralians,regardlessoftheirlocation.
2. ConsumerProtectionLegislationmustaccompanyaTUSOforbroadbandandvoiceservices,introducingminimumstandardsforservicedeliveryandprovision.
3. QualifyingServicedefinitionsmustaddressminimumperformancecriteriaandsetstandardsthatguaranteebaselinevoiceanddataservices.
4. AStatutoryInfrastructureProvider(SIP)mustbetransparentandaccountableandgivencleardirectionintheformoflegislationandfunding,theyshouldoffercompensationwhentargetlevelsareunfulfilled.TheSIPshouldstayunderGovernmentcontrolandbegivencleardirectionanddedicatedfundingtoensurevoiceandbroadbandbaselineservicerequirementsaremet.
5. TheintroductionofaRegionalBroadbandLevyshouldnotbeseenasthe
onlyfinancialandlegislativecommitmentfromtheGovernmenttodelivertelecommunicationsservicestoRRRareas.
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2. QualifyingServiceDefinitionsTelecommunicationLegislationAmendment(CompetitionandConsumer)Bill2017(thedraftBill)QualifyingServiceDefinitionsmustmeetbaselinebroadbandrequirements.TelecommunicationslegislationmustensurethatRRRAustralianshaveaccesstoinfrastructurethatmeetsbaselinebroadbandrequirements.Itisconcerningthatthedefinitionsofqualifyingfixedwirelessandsatelliteservices1inthedraftBillarebelowthestandardofservicethatissetinthecurrentStatementofExpectations2(SOE)tonbnTM.BIRRRisdisappointedthatthequalifyingservicedefinitionsincludedinthedraftBillhavethepotentialtosetinferiorstandardsforRRRConsumers.Existingnetworkexpectationsshould,atleastberecognisedinthelegislation.Definitionsoffixedwirelessorsatelliteservicesthatallow‘end-userstodownloadcommunications’3aretotallyinappropriateandprovidenosafeguardforRRRconsumerbroadbandneeds.ThedraftbilldefinitionsofnbnTMfixedwirelessandsatelliteservicesarelackingminimumperformancestandardsandsetnomandatedminimumuploadspeed. Itisirrationalthatthislegislationseekstooutlinestandardsthatarebelowcurrentexpectationsfornetworkperformance.BroadbandservicesmustbelegislatedtoincludebaselinebroadbandguaranteesforallAustralians,whichdeliver:
• minimumspeeddeliveryof25/5Mbps(withadaptablespeedsprogressivelyofferedtoRRRconsumersthatarewellinexcessofthebaseline)andaparticularfocusonimproveduploadspeeds.
• minimumdataallowancesthatarerationalandnotrestrictive(adaptable,increasingasdataneedsincrease)andrecognisethecurrentexponentialgrowthindataneeds
• affordability• accessibility
1DepartmentofCommunications(2016)ExposureDraft,TelecommunicationsLegislationAmendment(CompetitionandConsumer)Bill2017,p.952https://www.communications.gov.au/departmental-news/statement-expectations-nbn-co3DepartmentofCommunications(2016)ExposureDraft,TelecommunicationsLegislationAmendment(CompetitionandConsumer)Bill2017,p.95
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• guaranteedstandardsofservicequality,reliabilityandassurance(withcompensationwhentargetlevelsarenotmet)thatdeliverfitforpurposebroadband
Theseminimumrequirementsmustbeflexibleanddynamictoensurethattheycanchangereactivelyasminimumbroadbandrequirementsincreaseovertime.ItisvitalthattheAustralianGovernmentandtelecommunicationindustrystopsfocusingonthespeedofbroadbandservicesaloneandstartsdeliveringserviceswithknownstandardsofreliability,affordability,accessibility,QualityofService(QoS)andcustomercare.ProgressionandinnovationinRRRareassimplycannotproceedwithouttheseessentialbaselinecomponents,regardlessofspeedsoffered.Assuch,theStatementofExpectationsandGovernmentdirectiontonbnTMmustbebroadenedtoensurethebroadbandneedsofAustraliansarelegislated.WesupportthepositionsofothermembersoftheRRRCommunicationsCoalitionregardingthelegislatedinclusionofmorecomprehensivebroadbandfeatures,beyondspeed,inanydefinitionofaqualifyingservice.Thesefeaturesmustbefar-sightedenoughtoaccommodatetheever-growingdemandsofeachsectorofRRRlives-fromhealthandeducationthroughtoagriculturalopportunitiesandin-homeadvancesintechnology.
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3. StatutoryInfrastructureProvider(SIP)Regime
3.1. StatutoryInfrastructureProviders(SIP)mustberegulatedtoprovidesetconsumerstandards;thiswillensureprotectionofconsumerneeds.
BIRRRhasobservedthelackofanystrongregulationontheperformancestandardsofnbnTM.WehavecontinuallyrequestedthatnbnTMacceptanddemonstrategreaterresponsibilityandtransparencyaroundtheirperformanceandservicedeliveryandprovision.StronglegislationisnecessarytoregulateaSIP’sperformanceandholdthemaccountableformeetingclearanddirectperformancebenchmarks.BIRRRhasreservationsaboutnbnTMbecomingtheSIPforRRRareas,withoutthelegislationofspecificconsumerstandards.ThenbnTMrollouthasseverelyimpactedtelecommunicationsserviceforRRRconsumers.nbnTMhasanextremelypoortrackrecordofmaintainingtheirnetworkstotelecommunicationscarrierstandards.nbnTMlackstransparencyandaccountabilitywhenitcomestoprovidinginformationandsupportregardingbroadbanddelivery.ThenbnTMSkyMusterinstallationprocedurehasresultedinscoresoffrustratedRRRconsumers4,someofwhomhavebeenleftwithnoworkingconnectionforupto4months5.Thesearenotisolatedcasesandhaveresultedinaseriouslevelofdistrustandwariness,creatingsignificantbranddamagefornbnTM.SkyMustersatellitenetwork‘teethingissues’continue,monthsafterserviceswerefirstinstalled.AlthoughRRRconsumersaregratefulfortheincreasedbroadbandspeeds,thenbnTMrolloutinRRRAustraliahascomewiththeattendantcostofpoorerservicereliability,poorerprovisioningandpoorercustomerguarantees.RRRconsumersweresolda‘game-changing’satellitethatpromisedtodeliververyfastbroadbandandinsteadtheyhavebeenleftbitterlydisappointed.Additionally,nbnTMhasunderservedmanyRRRcommunities,leavingcountlessresidenceswithinferiortechnologythanwhattheyarealreadyconnectedto.
4SeeFigure15USODRAFTSUBMISSIONBIRRR,2017
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Figure1BIRRRSkyMusterSurvey,PreliminaryData,2016
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Legislationshouldsetbaselinelevelsofnetworkrequirementsthatwillnecessitatenetworkstandards,servicelevelsandthatcompensationisguaranteedifstandardsarenotmet.BIRRRisfrustratedthatthedraftbilllegislationoverlookedthesekeycomponentsofconsumerrequirements.Toprotecttheinterestsofconsumers,broadbandlegislationmustdomorethansimplyguaranteetosupplyaconnection.LegislationmustgivedirectiontonbnTM(theSIP)toestablishaccountabilityandguaranteesonbroadbandservicesforRRRAustralia.ExistinglegislationreformneglectstoeffectivelyprotectconsumersandthisisanimmenseoversightandconcerntoBIRRR.BIRRRencouragestheestablishmentofregulationsthatwillensureRRRconsumerneedsareprotected.
3.2. nbnTMpolicyanddirectionmustbereviewed.
RRRconsumersareconcernedthattoomuchemphasishasbeenplacedonprovidingminimumspeeds,withoutaclearfocusoncustomerneedsandserviceguarantees.
“TheGovernmentiscommittedtocompletingthenetworkandensuringthatallAustralianshaveaccesstoveryfastbroadbandassoonaspossible,ataffordableprices,andatleastcosttotaxpayers.TheGovernmentexpectsthenetworkwillprovidepeakwholesaledownloaddatarates(andproportionateuploadrates)ofatleast25megabitspersecondtoallpremises,andatleast50megabitspersecondto90percentoffixedlinepremisesassoonaspossible.”
nbnTMStatementofExpectations,DepartmentofCommunications&TheArts,20166EnablingnbnTMastheSIP,toself-regulatewillnotdeliverforconsumers.TheBIRRRteamisonthegroundvolunteeringinRRRareaseveryday,troubleshootingthousandsofcasesthatproviders,nbnTMandthegovernmentcontinuallydisregard.TheveryreasonfortheexistenceoftheBIRRRgroupisthereluctanceofnbnTM,theGovernmentandtelecommunicationsproviderstoofferreliableserviceswithefficientcustomerserviceandtransparentinformationtoRRRconsumers.Regrettablytherearedisparitiesinthecurrentlegislation,whichcontinuetoleaveRRRconsumersvulnerable.Weareshockedthatunlesslegislationmandatesit,SIPswillbeleftunregulatedandthedeliveryofbroadbandserviceswillbeabsentofconsumerassurances.ThisisanundesirableprospectfortheBIRRRteamwhohaveexperiencedfirsthandthe
6https://www.communications.gov.au/departmental-news/statement-expectations-nbn-co
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currentinadequaciesofalackofgovernmentdirectionandregulationinthetelecommunicationindustry.BIRRRhasreservationsaboutaself-regulatedSIPprovidingacceptableRRRbroadbandservices,astherewillbenolegislativerequirementforexcellenceinserviceprovisionanddeliverytooccur.
3.3. TheStatutoryInfrastructureProvidershouldstayunderGovernmentcontrol,withaseriousfinancialcommitmenttodeliveringequitablebroadbandservicestoRRRareas.
ForRRRconsumerstoensuretheirbroadbandneedsareprotected,theSIPmustbelegislatedandstayundergovernmentcontrol.ThiswillensuretheSIPremainsontargetanddeliverssetstandardstoRRRconsumers.ThereisanurgentneedtoleveltheplayingfieldfortelecommunicationsinregionalareasanduntilthisisdoneregionalnbnTMservicesmustbelegislatedtoremainunderGovernmentcontrol.
Especiallywhenrecognisingthecontributionruralcommunitiesmaketothenationaleconomybecause,hereinMaranoa,wecontributemorepercapitaGDPthantheGoldCoast,ToowoombaorTownsville.Littleproud,D,Feb20177
Weneedtoovercomethe#datadroughtandinvestintelecommunicationsthatwillgrowstrongandhealthyregionalcommunities.Wewelcomededicatedandfocusedlegislationandfundingtoensurethatthiscanoccur.BIRRRnotesthatinthedraftBillthereisprovisionfortheMinistertohavefallbackauthority,assignedtotheAustralianCommunicationsandMediaAuthority(ACMA),toset“standards,rulesandbenchmarksthattheSIPsmustcomplywith”8.BIRRRwelcomesthisinclusioninthedraftBill,butfeelsthatthelegislationmustbemoreeffectivelyimplemented.ThecustomerservicestandardsrequiredofnbnTMarevagueandimprecise,furthermorethereisnolegislativerequirementthatanycustomerservicestandardsaremonitoredorreviewed.
7http://www.queenslandcountrylife.com.au/story/4444785/telco-collaboration-begun-at-dalby-forum-rubber-has-to-hit-the-road-now/?cs=4785
8DepartmentofCommunications(2016)ExplanatoryNotes,ExposureDraft:TLABillandChargeBill,p.8.
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3.4. IfaSIPiscommissionedwithprovidingVoiceservices,thesemustretainexistingUniversalServiceObligations(USO).
ThefutureofRRRvoiceservicesisofgreatconcerntoBIRRR.UntilsuperiortechnologymeetsbaselinestandardsconsumerswhoaremappedfornbnTMSkyMusterandFixedWirelesstechnologiesmustbeassuredthattheirnonnbnTMtelephoneservicesaremaintained.Aconsistentstandardofvoicecommunicationservice,whichisdistinctandindependentofnbnTMsatellitebroadband,mustbeavailabletoallwholiveinRRRareas.ThepresumptionthatnbnTMmaybetaskedtodeliveraguaranteedUSOequivalentvoiceserviceonnetworksdesignedtodeliverbroadbandisaseriousconcern.AnynewvoiceserviceforRRRAustraliamustmeetexistingbaselinerequirementsandshowagovernmentcommitmenttoensuringsafetyandprotectionofessentialservices.CommittingRRRareastoinferiornbnTMvoiceserviceswouldnotonlyplaceincreaseddemandsonthenbnTMsatelliteandfixedwirelesssystemsbutalsoplaceRRRAustraliansintreacherouspositions.BIRRRagreeswithACCAN’sstatement9that:
“IfservicelevelsconsistentwiththevoiceCSGwererequiredonnbn’sfixedwirelessandsatellitenetworks,thiswouldalsoincreasenbn’scosts.AsnbnhasnotdesignedordeployeditsFixedWirelessorSatellitenetworkswithaviewtosupportingvoiceservices,furtherdetailedanalysiswouldberequiredtounderstandthetechnological,operationalandservicequalityimplicationsofhavingtodoso.”
and“Anyframeworkthatassumesarolefornbnthatisinanywaydifferentfromnbn’scurrentproductsetandrolloutplanswillhavebothoperationalandcostimplications,andwillrequirefundingtoimplementandmaintain.”
9ACCAN,telecommunicationsReformPackageSubmission,February2017
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4. RegionalBroadbandScheme(RBS)
BIRRRsupportstheintentoftheRegionalBroadbandScheme(RBS),understandingthatsustainablefundingmustbesecuredtoensurebroadbandaccessinRRRAustralia.LongtermpublicfundingforopenaccessmobilenetworkexpansioninruralandregionalAustraliashouldalsobeongoing.TheFederalGovernmentMobileBlackSpotProgramme(MBSP)mustcontinuetoensureRRRinnovationandgrowthcanoccur.Aproposedlevytofundnon-commercialnbnTMfixedwirelessandsatelliteservicesshouldbeviewedasonlypartofasolutiontoenhanceregionaltelecommunications.AsolidfinancialandlegislativecommitmentfromGovernmentandindustryisdesperatelyneededtoguaranteebaselinebroadbandservicesinRRRareas.BIRRRcautionsusingthereformpackagelevyasawayoffurtherreducingGovernmentexpenditure.WewouldinsteadwelcomeacomprehensiveapproachtofundingandlegislationthataddressesthesignificantcontributionsregionalareasmaketoAustralia'seconomyandproductivity.
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5. ConclusionBIRRRcannotgivefullsupporttoaTelecommunicationsReformPackagethatdoesnotestablishsafeguardsinrelationtoSIPperformance.TheGovernmentmustcommittolongtermregulatorytelecommunicationslegislationthatdeliversimprovedoutcomesandprotectsRRRconsumers.Additionallythedefinitionsofwhatconstitutesabaselinefixedwirelessandsatelliteservicemustbeestablished.
Itisurgentthattheseessentialrequirementsareaddressedbeforelegislationispassed.ItisvitalthattheAustralianGovernmentandtelecommunicationindustrystopfocusingonjustthespeedofbroadbandservicesandstartdeliveringreliability,affordability,accessibility,QualityofService(QoS)andcustomerservice.
