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Output 2.1-Strategic advice, programs and policy to achieve competitive and diverse communications and information technology industries and services.
Description
The Department develops and maintains policy, regulatory and program frameworks which support the delivery of competitive, innovative and diverse communications services. Policy advice is directed towards improving access for all Australians to communications services, towards providing adequate consumer safeguards and to ensuring that Australian intellectual property is managed to balance the needs of users, creators and investors.
The Department's Communications Research Unit (CRU) assists policy formulation within the Department through a targeted economic and technical research program and provides up-to-date and relevant statistical information. The Communications Research Unit undertakes fee-for-service consultancies for other government agencies on telecommunications and broadcasting issues.
Summary of major activities, significant issues and developments for Output 2.1
Telecommunications
The Communications and the Arts Legislation Amendment Act 2001 was passed which included:
- amendment to the Telecommunications Act 1997 giving carriers and carriage service providers statutory immunity arising from an act or omission made in good faith in certain circumstances; and
- amendment to the Trade Practices Act 1974.
Advice was prepared for the Minister for Communications, Information Technology and the Arts on the price controls review of Telstra and a new price control determination was prepared to implement the Government's decision to extend the Telstra price controls for a further 12 months. The Determination was gazetted on 28 June 2001, to go into force on 1 July 2001.
The new legislative provision on telephone sex services in Part 9A of the Telecommunications (Consumer Protection and Service Standards) Act 1999 came into effect on 3 February 2000.
The Universal Service Obligation (USO) arrangements in the Telecommunications (Consumer Protection and Service Standards) Act 1999 were amended to:
- support the $150 million Extended Zones Tender;
- enable Universal Service Obligation (USO) subsidies to be set in advance;
- expand, in principle, the USO funding base;
- support multi-provider USO competition;
- enhance competitive provision of the Digital Data Service Obligation (DDSO); and
- streamline USO and National Relay Service (NRS) administration.
The world's first national Emergency Call Service for users of text communication devices, the Emergency Call Service for the NRS, was launched.
The Department signed an Agreement with Telstra on 1 June 2001 for the implementation of the social bonus program ($150 million) to provide untimed local calls, untimed local Internet access and advanced telecommunication services to the extended zones of Australia.
The Department also signed an agreement with Vodafone on 19 April 2001 for the implementation of continuous mobile phone service along designated major Australian highways.
The Department provided secretariat support to the Telecommunications Service Inquiry, which was established to report on the adequacy of service levels across Australia. The Inquiry reported on 30 September 2000 and policy advice was provided on the Government's response to the Telecommunications Service Inquiry, which was announced on 15 May 2001.
The Department progressed the implementation of the Networking the Nation program including the General Fund ($250 million), Internet points of presence ($36 million), Remote and Isolated Islands program ($20 million), Building Additional Rural Networks (BARN) ($70 million) and extending mobile phone coverage ($3 million).
The Broadband Services in Australia report was produced by the Department. The report provides the current state-of-play in the broadband services market in Australia and provides a comparison of Australia with other Organisation for Economic Cooperation and Development (OECD) countries.
The Department provided policy advice on the re-allocation of spectrum and the setting of competition rules for spectrum licensing in the 3.4 GHz, 27 GHz, 800 MHz and 2 GHz spectrum bands.
The auctioning of licences raised more than $1.3 billion in 2000-2001.
IT Industry Development
Three projects were funded under the Advanced Networks Program (ANP). These projects will contribute to the development of advanced network infrastructure in Australia that should deliver long term benefits to the Australian economy, including by supporting progress towards the establishment of a national advanced backbone network.
Eight business incubators, that had received grant funding under the Building on IT Strengths (BITS) program at the end of June 2000, began operations this financial year.
Activities under the Intelligent Island program this year included the launch of the Business Development Fund (part of the Launceston Broadband Project) in March 2001 and the signing of a funding agreement in June 2001 for an Information Technology and Telecommunications (IT&T) Incubator. The incubator is a joint venture between ITem 3 (a BITS funded Incubator), KPMG Tasmania and the University of Tasmania.
On 23 April 2001 the Minister for Communications, Information Technology and the Arts released details of the Industry Development (ID) framework to apply to future Commonwealth IT outsourcing tenders. The new ID framework favours strategic ID outcomes and complements the Government's strategies to encourage the growth of Australia's information and communications technology (ICT) sector. As part of the new framework, strategic ID objectives, previously pursued on a contract-by-contract basis, will now be incorporated in a new strategic ID agreement that will apply to companies with significant sales to the Commonwealth. These arrangements will replace the existing Partnerships for Development plans.
A review was initiated to identify inhibitors to small-to-medium sized enterprises (SMEs) winning Commonwealth IT outsourcing work. The Department released a Discussion Paper in early June 2001 and responses to the Paper will assist the development of an Action Plan to be released in
September 2001.
Broadcasting
Amendments were made to the Broadcasting Services Act 1992 (BSA) to allow:
- automatic de-listing under the anti-siphoning regime;
- exemptions from the high definition television (HDTV) simulcast requirements for demonstration programs;
- improvements in arrangements for providing a third commercial television service in currently under-served regional and remote areas;
- introduction of an 'international broadcasting' category of broadcasting service to ensure national interest considerations are taken into account when licensing international broadcasting services;
- matters relating to ABC and SBS datacasting services; and
- a range of technical amendments to the BSA and the Radiocommunications Act 1992 relating to the datacasting regime.
The Department assisted the ABA and the industry to develop a system to manage interference to existing analog television reception that may arise from the introduction of digital television services.
The review of audio and video streaming over the Internet was completed. The Government's conclusion that Internet services providing television and/or radio programs outside the broadcasting services bands should not be regulated as a broadcasting service was implemented through a Ministerial determination.
Regulations implementing minimum audio standards for transmission of standard definition television programs were made.
The Minister issued a direction to the ACA to provide for the renewal of high-powered open narrowcasting licences, thereby improving security of tenure. A 'use it or lose it' condition on low powered open narrowcasting radio licences was introduced to prevent hoarding.
Regulations implementing the Regional Equalisation Plan were made, specifying measures to facilitate the provision of digital commercial television broadcasting services in regional licence areas.
The Department managed the $120 million Television Fund which has increased access to television services by people in regional, rural and remote areas of Australia by extending SBS television, fixing television black spots, and providing community groups with access to a second remote commercial television service.
The Department prepared and distributed a discussion paper as part of the statutory review of the digital transmission of community television (CTV).
The Department provided policy advice, which assisted the Government in approving funding for ABC and SBS contracts to provide digital television services, allowing the commencement of digital broadcasting by the ABC and SBS in major metropolitan areas on 1 January 2001.
The Department assisted the Department of Foreign Affairs and Trade in the development of an Australian international television service. The Minister for Foreign Affairs made an announcement in relation to this service in June 2001.
Intellectual Property
The Copyright Amendment (Digital Agenda) Act 2000 commenced on 4 March 2001, promoting the development of online content and enabling fair online access to educational and cultural materials.
The Copyright Amendment (Moral Rights) Act 2000 commenced on 21 December 2000, strengthening the rights of creators.
The Copyright Amendment (Parallel Importation) Bill 2001, which was passed in the House of Representatives in June 2001, reflects the Government's policy of allowing the parallel importation of books, periodicals, printed music and software.
The Department finalised management guidelines for intellectual property associated with Government information technology contracts.
The Department, in conjunction with the Attorney-General's Department, released a discussion paper on the duration of copyright in photographs. A number of submissions were received from stakeholders and consideration of the issue is continuing.
The Department is participating with other Intellectual Property agencies in drafting a response to the Intellectual Property and Competition Review Committee's review of Intellectual Property legislation under the Competition Principles Agreement.
Communications Research Unit
The CRU undertakes research for all areas of the Department and NOIE, including telecommunications, broadcasting, film and the arts, intellectual property, the IT sector, the Internet and e-commerce.
The CRU maintains statistical databases covering industry statistics (for example employment,
output, quality of service and pricing data) as well as international benchmarking data. The unit maintains links with the Australian Bureau of Statistics and a wide range of industry participants to obtain current data.
The CRU provided assistance to the Government's Telecommunications Service Inquiry and to the Television Fund Black Spots Program.
The CRU developed a geographic spatial mapping facility which has been used to complement a wide range of policy advice to the Department and Ministers' offices.
The CRU again organised a Communications Research Forum in Canberra in October 2000. Registrations for the Forum continue to grow as does the number of papers submitted.
The scope and coverage of the CRU fee-for-service contract work for the ACA and the Australian Competition and Consumer Commission continued to expand.
The Department's library has expanded the range of desk-top electronic services to Departmental staff.
Performance Information Output 2.1
Quality and timeliness of advice and draft legislation.
The Minister for Communications, Information Technology and the Arts has expressed satisfaction with the timeliness and quality of advice and draft legislation on the broadcasting, telecommunications and intellectual property regulatory frameworks.
Industry and other stakeholders' satisfaction with consultation processes.
Telecommunications
Key stakeholders have provided positive feedback on the opportunities provided for consultation on policy development and program delivery activities during the year. Examples of consultation activity conducted include:
- the Regional Communications Forum in May 2001;
- development of a package to streamline the telecommunications access regime which included an industry forum with 65 participants, the release of a discussion paper and dialogue with important industry players and authorities;
- consultation on Telstra price controls;
- consultation on the new legislative provision on telephone sex services;
- consultation with industry in the course of developing advice on competition rules for individual spectrum auctions;
- consultation with Commonwealth Ministers, State Governments and industry on the privatisation of the INTELSAT satellite network;
- the consultation program for the Telecommunications Service Inquiry, including discussions in Darwin, Adelaide, Hobart and Sydney and approximately 13 regional centres;
- the consultation program on the Government's response to the Telecommunications Service Inquiry;
- consultation with project applicants and State Government representatives on Networking the Nation activities and online Council initiatives; and
- consultation with Commonwealth agencies, State and Territory Governments and industry associations and participants about the formulation of a new industry development framework applying to ICT procurement.
Broadcasting
The Department released an issues paper in October 2000 as the basis for public and industry consultation regarding the statutory review under Schedule 4, clause 59A(1) of the Broadcasting Services Act 1992 into the adequacy of the ABA's spectrum allocation powers. Submissions received raised a number of issues which will be considered in the development of the Minister's report to Parliament on the review in the second half of 2001.
The Department consulted with broadcasting industry bodies on the Senate Select Committee on Information Technologies Report In the Public Interest: Monitoring Australia's Media and the Productivity Commission's Broadcasting Report.
The Department released a discussion paper in March 2001 on possible amendments to the Broadcasting Services Act 1992 in response to certain recommendations of the Australian Broadcasting Authority's Commercial Radio Inquiry Report.
The Department released a discussion paper in October 2000 canvassing options for extending tenure for radio high powered open narrowcasters and submissions which were later taken into consideration in the Government's decision to provide greater security of tenure.
Aspirant licensees-the ABA, ABC and SBS-were consulted in the development of the new licensing scheme for international broadcasters.
Intellectual Property
Relevant industry organisations and regulatory agencies were consulted on aspects of a range of intellectual property regulatory changes introduced during the year. Results included:
- key stakeholders publicly supporting the Copyright Amendment (Digital Agenda) Act 2000;
- consultation with industry and key stakeholders was undertaken in relation to the Copyright Amendment (Moral Rights) Act 2000. Stakeholders expressed a high degree of support for the amendments;
- positive feedback was received in relation to the Moral Rights education and awareness campaign (which focused on the arts sector in particular);
- management guidelines for intellectual property associated with Government information technology contracts were finalised following consultation with industry and other stakeholders and were well received across Government and industry.
Communications Research Unit
CRU seeks and gets feedback from all its clients on a regular basis. This has generally been very positive, particularly for statistical and mapping services.
Written advice from fee-for-service clients demonstrates their satisfaction with the work of the CRU. The CRU continues to be asked to expand and develop its analyses for these consultancies.
Efficient and timely program administration.
Telecommunications
A number of key programs have met or are scheduled to meet their target objectives. The objectives are:
- for 2000-2001, grants totalling $721 000 were allocated for telecommunications representation and research under section 593 of the Telecommunications Act 1997;
- the introduction of untimed local calls and untimed Internet access in the Extended Zones and preferential rate calls to Community Service Towns is proceeding in line with the Government's timing commitment;
- phase one of the Spatial Data Network and the Regional Commercial Activities Database were completed on schedule;
- the date for the completion of continuous mobile phone coverage on designated major highways is mid-2002 in line with the Government's commitment; and
- efficient management of Programs, including the BITS program and the Software Engineering Quality Centres program and meeting funding and reporting milestones.
Broadcasting
- The Department received more than 400 expressions of interest for new services and more than 180 applications to replace obsolete equipment under two rounds of the Television Black Spots Program.
- To date, funding had been offered for new services at 43 sites and to replace obsolete equipment at 96 sites.
Improved access to communications services.
Telecommunications
The 2000-2001 spectrum auctions program enabled spectrum to be allocated on an efficient and competitive basis for the provision of a wider range of radiocommunications services e.g. mobile telephony, Internet access and business data transmissions.
The Minister announced on 25 June 2001 that the Government would introduce legislative amendments to quickly resolve access disputes under the telecommunications access regime in the Trade Practices Act 1974.
The Agreement for the provision of untimed local calls, untimed Internet access and other carriage services to the Extended Zones provides for lower prices of telephony services, improved prices and data rates for Internet and other services which increase the availability of advanced telecommunication services in remote Australia. The Commonwealth's 10 year agreement with Telstra also includes an obligation on Telstra to supply universal services during the contract term.
The Agreement for the provision of continuous mobile phone coverage along major Australian highways provides for travellers on those highways, regardless of where they normally reside or do business, to have access to mobile phone services which is an increasingly important social, economic and personal safety facility.
The Department provided advice and conducted consultations to assist bulk mail customers of Australia Post to aggregate mail from several sources before lodgement, improving access to high volume discounts.
The Networking the Nation (NTN) program continued to provide incentives to improve the type, quality and price of telecommunications services to communities in regional, rural and remote parts of Australia. A total of 207 new projects totalling $91.6 million were approved in 2000-2001, providing a wide range of communications services to meet community needs across regional Australia.
Strengthened requirements for temporary services pending connection of the standard service or fault repair will ensure that all consumers have access to a basic telephone service. Service will have to be provided within 30 working days of a request for connection of the standard service, within five working days of a fault on the standard service and in cases of recurrent fault and emergency situations. The introduction of reliability standards for services provided in fulfilment of the USO will ensure improved access, particularly in regional areas.
The Government is implementing an $88.2 million program to improve mobile phone coverage in regional Australia and a $50 million program (including $38 million from Telstra) to provide better quality and faster dial-up Internet access in regional and metropolitan Australia.
Broadcasting
An effective system has been established by broadcasters, with the assistance of the ABA and the Department, to help affected viewers overcome interference to analog television reception arising from the introduction of digital television services. The Government has allocated up to $10 million to the ABC and SBS to meet 20 per cent of free to air broadcaster costs for the interference management scheme.
The Government agreed to fund the actual costs of analog channel changes to relevant ABC and SBS translator services to improve the quality of proposed datacasting channels in Sydney and Newcastle.
Regional television licensees began to draw on funds under the Regional Equalisation Plan which assists regional television broadcasters with the costs of digital conversion with funding of
$260 million over 13 years. Assistance under the Plan is available in the form of rebates on
annual licence fees, supplemented by a small grants program for broadcasters in some single-
service licence areas.
The introduction of a 'use it or lose it' condition for radio low-powered open narrowcasters on
22 December 2000 will reduce hoarding of these licences and provide increased diversity of radio services for listeners.
The Government's Television Fund has improved the range of television services available to all Australians through the following initiatives:
- SBS television extensions are providing 1.2 million regional viewers with access to the SBS analog television service involving 36 retransmission areas and 78 sites;
- the Television Black Spots Program has provided 25 new services in 13 black spot areas, helping more than 7 194 households across Australia, and assisted 67 organisations to replace obsolete equipment at 96 retransmission sites helping to avoid loss of television reception at more than 19 312 households;
- under the Second Remote Commercial Television Subsidy, a two-thirds subsidy has been provided to 75 organisations at 109 retransmission sites to purchase decoders and transmitters for accessing a second remote commercial service; and
- the Regional Communications Partnership self-help subsidy scheme has made access to national transmission network sites operated by ntl Australia Ltd affordable for communities in regional and remote areas.
Commercial Broadcasters in Declared Remote Areas were funded for the difference between the concessional transmission fees paid to the National Transmission Agency (NTA) and the commercial fees paid to the new owner of the national transmission network.
Radio for the Print Handicapped (RPH) received funding in 2000-2001 for all station transmission costs.
The ABA granted ten additional community radio licences during the reporting period, bringing the number of licences granted to 217.
Introduction of digital television legislation.
The Department, in conjunction with the ABA, the ACA and industry, provided advice on issues to assist the implementation of digital television. Results included:
- digital television broadcasting services commenced in five major metropolitan areas on 1 January 2001. Planning is proceeding for implementation of digital television in regional and remote areas;
- a framework was developed to manage interference from the introduction of digital television to analog television services and ancillary equipment;
- regulations implementing HDTV quota and captioning requirements and audio standards for SDTV were made;
- minor enhancements and technical amendments to the legislation were made during the year to improve effectiveness; and
- an industry-wide Digital Television Strategy Group was established to ensure introduction of the next generation of digital receivers is coordinated.
NetAlert progress in implementing its charter.
The Department provided annual funding to NetAlert on approval of its 2000-2001 workplan. NetAlert made progress against the workplan in the following areas:
- established a Help Line service offering information and advice on safe use of the Internet;
- developed information resources on Internet safety issues;
- completed an Industry Liaison Project to raise Internet industry awareness of the online content scheme; and
- appointed a NetAlert Ambassador to promote NetAlert community education activities.
Implement funding and monitoring arrangements for the BITS business incubators, advanced communications infrastructure projects and Intelligent Island.
Eight BITS business incubators, which had received grant funding at the end of June 2000, began operations this financial year. Grant deeds were also finalised for the remaining two successful applicants-in September 2000 for the Northern Territory and April 2001 for South Australia.
The incubators have provided the Department with quarterly reports during the course of the year.
In the first nine months of the year, the incubators had received more than 1 100 applicants and accepted 53 incubatees.
The Minister for Communications, Information Technology and the Arts launched the Advanced Networks Program (ANP) in September 2000. Forty-nine applications for funding were received by the December closing date. The selection process involved assessment by the Department, examination by a technical/network specialist with 11 applications being shortlisted for interview by an independent advisory panel. The three successful applications were announced in May and Deeds of Agreement were being prepared in June.
Intelligent Island Program Strategic and Implementation Plans were approved and put in place. Monitoring has begun for the Intelligent Island Memorandum of Understanding and Launceston Broadband Project funding agreement. The Business Development Fund agreement was signed and monitoring is underway. A funding agreement for an IT&T Incubator was signed in June 2001. | 
