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Background

The independent Regional Telecommunications Inquiry (RTI) report provides a comprehensive assessment of telecommunications services in regional Australia, and makes recommendations on arrangements to enhance existing telecommunications services including in regional, rural and remote Australia.

The Government has accepted all of the 39 recommendations made by the Inquiry.

The RTI reported that two particular issues need to be resolved to deliver adequate services to regional Australia. These are specifically reflected in recommendations 2.9 and 4.1, and the Government's response to these key recommendations is described below.

The RTI also noted that to consolidate improvements, a number of further enhancements to existing programs and arrangements should be undertaken. The Government has accepted each of these recommendations.

Response to key recommendations to achieve service adequacy

Recommendation 2.9: Identification and raising the performance of worst performing ESAs. The RTI report recommended that to immediately target the worst performing Exchange Service Areas (ESAs) in regional, rural and remote Australia, the Government should require the Australian Communications Authority (ACA) to identify these ESAs and Telstra should then be required to provide a formal undertaking to the Government on its strategy for raising the performance of these ESAs.

The ACA will commence work immediately on identifying the worst performing ESAs using the Network Reliability Framework. Telstra will provide the Government with a formal undertaking on its strategy to improve the performance of identified ESAs with timeframes and funding commitments.

Recommendation 4.1: Ensuring dial-up Internet speeds of at least 19.2kbps or equivalent throughput. The RTI noted that the Internet Assistance Program is achieving its objectives of helping users achieve faster and better Internet browsing and e-mail services over the Telstra fixed line network, but recommended that a licence condition be imposed on Telstra to ensure the benefits provided under the program will be guaranteed into the future.

The Government will impose a licence condition on Telstra to provide a minimum dial-up Internet speed for all Australians of 19.2kbps or equivalent throughput over its fixed line network.

Both of these recommendations will be implemented as a matter of urgency.

'Locking in' Telstra service improvements

The RTI report recommended that Telstra undertake to make a number of improvements to its existing services and that such improvements be 'locked in'. In the undertakings Telstra provides to Government, Telstra will be expected to commit to an ongoing upgrade of its network to make sure that older systems do not adversely affect the quality of telephone services provided to customers in regional Australia.

Radio Concentrator Systems

Telstra will provide the Government with a formal undertaking on a timetable for the upgrade of its small number of remaining older radio concentrator (ARCS and DRCS) telephone systems.

Pair Gain Systems

Telstra will provide the Government with a formal undertaking on its strategy to improve, as soon as possible, phone services affected by the use of 6/16 and similar pair gain systems.

Telstra will be required to demonstrate to Government that it has a strategy to deal with slow dial-up internet speeds caused by underperforming pair gain systems and will provide an undertaking on the implementation of this strategy.

The Government will also seek a report from Telstra on the outcomes of its project to improve the coordination of new service connections.

Further targeted funding support

The Government has allocated a further $30 million over four years to respond to the following recommendations:

• Recommendation 3.1: Government support for further extension of terrestrial mobile phone services;
• Recommendation 3.2: Expansion of the Government's satellite phone subsidy scheme; and
• Recommendation 5.4: The provision of further support for IT training in rural and remote areas.

Extending mobile phone coverage

Further funding support will be provided to expand terrestrial mobile phone coverage to smaller rural communities and on major regional highways. The Government will consult widely to identify eligible communities and highways, including with State and Territory Governments and carriers. Funding will be provided towards the capital cost of providing mobile phone coverage in areas that are currently not served, and are unlikely to be served under current commercial arrangements.

Capital funding support for further expansion of terrestrial mobile phone coverage is $15.9 million and will be available from 1 January 2004.

Program scoping, including consultation with State and Territory Governments and carriers is due to commence on 1 July 2003.

Expansion of the Satellite Phone Subsidy Scheme

The Satellite Phone Subsidy Scheme is a Government initiative aimed at making mobile communications more accessible and affordable for people living or working in the most remote parts of Australia, beyond CDMA or GSM terrestrial mobile phone coverage.

The Government will provide additional funding to expand the Satellite Phone Subsidy Scheme to subsidise handset costs for all mobile phone users with an appropriate need for a satellite mobile phone handset.

In addition to the existing $3.9 million funding, a further $4.0 million is being provided to expand the Satellite Phone Subsidy Scheme from 1 January 2004.

From 1 July 2003, the existing program will be reviewed to ensure that further funds are targeted at all mobile phone users with an appropriate need for a satellite mobile phone handset.

IT training and support

The RTI report found that awareness of consumer rights and commercial products in non-metropolitan Australia is relatively low and that training programs such as those provided through the Networking the Nation program are important to Internet users in these areas.

The Government will provide further funding support for IT training and related support services in rural and remote areas of Australia where formal training programs are not currently accessible.

The focus of the assistance provided under this initiative will be on basic level computer training and technical support, rather than specific technical support for Internet access, which is currently provided by the Internet Assistance Program.

The Government will provide $10.1 million for IT training and support services in rural and remote Australia where formal training programs are not currently accessible.

Program scoping, in close cooperation with the State and Territory Governments, will commence on 1 July 2003. Funding will be provided from 1 January 2004.

Refinements of existing policies

The RTI report recommended a range of further modifications to existing programs and arrangements to consolidate improvements achieved over recent years.

Fixed telephone services

The ACA will continue to refine the Network Reliability Framework as necessary to ensure that it provides an effective mechanism for improving the reliability of Telstra's telephone network.

The Government will undertake a review of the Universal Service Obligation (USO) as required by section 159A of the Telecommunications (Consumer Protection and Service Standards) Act 1999.

The Government will undertake a review of network extension and trenching costs, including considering how such costs should be recovered.

The Government will ensure that where extreme cases of Customer Service Guarantee (CSG) non-compliance occur, they receive direct attention by the service provider responsible for the failure and that this non-compliance is reported in a timely way to the ACA.

Payphones

The Government will work with Telstra and the ACA to review payphone policy and ensure that the provision of payphones under the USO continues to be effective and relevant. In particular, the Government will work with Telstra under the existing $8.3 million Telecommunications Action Plan for Remote Indigenous Communities (TAPRIC) program to provide payphones or community phones to remote Indigenous communities currently without access to telecommunications.

Telstra will be required to improve its arrangements for informing the public about its payphone policy, including making sure that the public has access to clear information on the criteria for providing payphones.

Access to services for people with a disability

The Department of Communications, Information Technology and the Arts will report to Government on the outcomes of work between Telstra and representatives of people with disabilities to resolve any services concerns, and will consider the implications of that work for national policy settings.

Information for consumers

The ACA will provide further information to consumers on their legislative rights. This will include information on safeguards for protecting consumers such as the CSG and the role of the Telecommunications Industry Ombudsman. In addition, further information will be provided on mobile phone services, including coverage and technology issues, fees and charges, mobile number portability and contract issues. The ACA has already released 'toolkits' that provide consumers with important information they can use when purchasing mobile, fixed telephony and internet services.

Online access centres

The RTI report recognised the importance of online access centres in rural and remote communities in providing online public access, training and support and government services online. The Government will work with the Online Council on strategies to maintain the viability of online access centres, including in remote Indigenous communities.

FURTHER INFORMATION

Copies of the RTI report are available online at www.telinquiry.gov.au/rti-report.html or by calling 1800 883 488.

Further information on the Government's response to the RTI report is available online at www.dcita.gov.au/rtiresponse.

• Document ID: 6788 |
• Last modified: 6 February 2008, 1:42pm