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Administered items

Connect Australia—Broadband Connect

Increased broadband take-up in rural and remote areas

The Broadband Connect program builds on the success of the Higher Bandwidth Incentive Scheme in encouraging the provision of metro-comparable broadband access across regional Australia. Under the scheme, an incentive is paid to Internet service providers registered with the scheme for each eligible customer supplied with a Broadband Connect-compliant broadband service.

Terrestrial broadband coverage in Australia is illustrated in figure 2.28 (satellite broadband access is ubiquitous across regional Australia). As at 30 June 2006, the program had supported the connection of 156 214 eligible customers to broadband services Australia-wide, with continued growth in customer numbers. At the same date, there were 46 retail service providers registered with Broadband Connect, plus four 'wholesale only' providers supplying broadband to regional Australia. Under the Broadband Connect and Higher Bandwidth Incentive Scheme, the Department provided subsidies of $221.8 million to registered Internet service providers in 2005–06.

Because the scheme is designed to be technology neutral, registered providers are able to use a variety of technologies. As at 30 June 2006, 70.4 per cent of Broadband Connect customers were connected by ASDL, 17.5 per cent used satellite (13.4 per cent using two-way satellite and 4.1 per cent using one-way satellite), 11.3 per cent used wireless and the remaining 0.8 per cent of customers used cable.

Figure 2.28 Terrestrial Broadband service availability

Following a mid-year review, $20 million of the $144.8 million allocated for Broadband Connect was rephased into 2006–07.

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Connect Australia—Mobile Connect

Extending mobile coverage

Under the Mobile Connect program, $25.3 million over four years will be provided to extend terrestrial mobile phone coverage and to continue satellite handset subsidies for more remote areas.

During 2005–06, the existing Satellite Phone Subsidy Scheme element of Mobile Connect was extended to June 2009. The Scheme offers a subsidy towards the purchase of a satellite phone to people who live or work in areas without terrestrial mobile phone coverage.

The 2005–06 allocation of $4 million for Mobile Connect was used only for the Satellite Phone Subsidy Scheme element.

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Connect Australia—Clever Networks

A discussion paper on Clever Networks was released on 17 November 2005 for public comment. Nationwide consultation forums on the Connect Australia package were held in late November and early December 2005. In January 2006, the Department received over 100 submissions in response to the discussion paper.

Following a nationwide consultation process, on 11 May 2006 the Minister agreed to the proposed structure of the Clever Networks program. The first funding allocation will become available from 1 July 2006.

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Connect Australia—Backing Indigenous Ability

Backing indigenous Ability (BIA) has been allocated $83.539 million over four years from 2006–07 to improve telecommunications services in Indigenous communities, improve Indigenous television content and replace ageing remote radio infrastructure. No funds were allocated or expended in 2005–06 as program funding does not commence until 1 July 2006.

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Telstra Social Bonus—Launceston Broadband Project

The Launceston Broadband Project was an initiative of $30 million that was jointly funded by the Australian Government and Telstra which provided $25 million subsidies for the operation of the Multimedia Development Lab, an applications test-bed, in Launceston, and a further $5 million in funding to the Business Development Fund.

The project subsidised ADSL and wireless access to homes and businesses in the Launceston region. Funding for the Multimedia Development Lab, which ends on 30 June 2007, involved the Government contributing $10 million (including Departmental funding) and Telstra $15 million (a contribution of 40 per cent from the Government). $1.828 million was paid in 2005–06.

The $5 million (including Departmental funding) Business Development Fund was designed to work in tandem with the Launceston Broadband Project to stimulate new high-tech business opportunities in the Launceston region, with an emphasis on broadband applications. The Fund operated from 1999 to January 2006 and was administered by the Tasmanian Electronic Commerce Centre. During its operation, the Fund attracted approximately 250 applications, with 29 selected for funding. Ten applications developed by grantees were trialled on the Launceston Broadband Project test-bed. Up to 30 June 2006, the Tasmanian

Electronic Commerce Centre had received $4.586 million in funding for the Broadband Development Fund. The Centre reported that the Fund was successful in stimulating high-tech opportunities for the Tasmanian ICT industry with many of the funded projects achieving commercialisation.

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Telecommunications Action Plan for Remote Indigenous Communities (TAPRIC)

Improved and sustained take-up and use of telephone services in remote Indigenous communities

The Community Phones Program (CPP) provides for improved access to basic telecommunications services in remote Indigenous communities.

A community phone is a shared telephone service using a normal telephone handset inside a robust casing to protect the phone in extreme weather conditions and from breakage. The Community Phones trial is in its final stages and 187 new services had been installed 30 June 2006 in the Northern Territory and Western Australia to provide accessible, pre-paid community phone access.

Under the CPP, the Department has engaged regional agents to facilitate the roll-out of community phone services to remote communities. Regional agents have assisted in providing a liaison point between the Department, Telstra and the communities. They have provided training to community members on the operation of the phones and have assisted the Department in the evaluation process.

To test how alternative technologies can deliver fixed and mobile services to remote Indigenous communities in a cost-effective way, CDMA wireless local loop infrastructure was constructed in Bardi, Cape Leveque and Beagle Bay on the Dampier Peninsula in Western Australia. This has successfully connected up to 20 communities to fixed community phone services.

The Community Phones Demonstration Program (CPDP) is a subset of the CPP. While the CPP provides for basic shared community phones, the CPDP's purpose is to provide financial assistance to conduct demonstration pilots of innovative products and systems to improve telephone accessibility for remote Indigenous communities.

Following a selection process, the Department entered into a funding agreement with the Mapoon Aboriginal Council (MAC) on 6 February 2006. The MAC CPDP is piloting an Internet data service and voice service using VOIP to 15 Indigenous residential homes. It will use the fibre optic network infrastructure which links with the Mapoon Health and Community Care Building. The project also covers the installation of a fully functioning IP PBX and a billing system that can be scaled up as the network evolves.

A stage 1 evaluation of the Community Phones program was undertaken in March 2006. It found that the community phones are providing Indigenous communities with a much needed lifeline telephone service.

The concept of a robust telephone installed at a central location within a community has also proven successful. Calls can be made using a Telstra Country Calling Card or PhoneAway Card (no coins) and incoming calls can also be received. Use of both the calling card and the pre-paid home telephone service, Country Calling Line, is proving effective and demand for this service is growing.

Improved take-up and effective use of Internet services by remote Indigenous communities

Two TAPRIC programs related to Internet services were finalised during 2005–06, although the funding had been fully expended during 2004–05. No further expenditure was made on these programs during 2005–06. The Internet Access Program has subsidised the cost of equipment and initial support and training for 170 remote communities to install public access to broadband Internet.

Improved information flow, including increasing awareness in remote Indigenous communities of telecommunications opportunities and rights

As part of the TAPRIC program, the Department produced promotional material including posters and pamphlets that provided information to Indigenous communities on topics such as the priority assistance phone service, the right to a reliable phone service, how to manage a phone bill and high-speed Internet. During the year, these posters and pamphlets were distributed to all relevant Indigenous coordination centres as well as to interested organisations. The material was also distributed whenever Departmental staff visited Indigenous communities.

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National Relay Service

Access to the service by target audience

The National Relay Service (NRS) is a telephone relay service that Australians who are deaf or have a hearing and/or speech impairment can use to communicate with anyone who uses a standard telephone, and vice versa. The service is funded through the payment of an NRS levy to the Commonwealth by eligible carriers.

A range of relay services is offered to cater for the needs of users, with an Internet relay service to be progressively introduced in 2006–07. The service also provides a text-based emergency relay service and a community outreach program to provide training and raise awareness. In March, following a competitive tender process, a new provider, Westwood Spice, was selected to provide the outreach component of the NRS.

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Telstra Social Bonus—Building Additional Rural Networks program

Improved access to telecommunication services

The Building Additional Rural Networks (BARN) program was established in June 1999 and administered under Networking the Nation. Its objective is to support the development of new networks, network services and products with an emphasis on the adoption of innovative solutions and leading-edge technologies. Of the $67.3 million allocated over five years, $35 million was incorporated into funding for the National Broadband Strategy in 2003. Forty-four projects were funded in part or in full by the BARN program.

All expenses under BARN during 2005–06 was related to commitments made during the previous financial year, including those to the Upper Clarence and Community Economic Development Organisation, Fraser Island Association Incorporated, Burnie City Council and Telstra.

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Telstra Social Bonus—Local Government Fund

Improved access to local government services

The Local Government Fund has assisted local government authorities in regional and rural areas to improve their services to their communities through adopting telecommunications technologies. A total of $43.2 million was provided for 42 projects across the life of the program.

The Department made final payments totalling $149 312 to the Local Government Association of the Northern Territory to finalise three projects providing ICT services to Indigenous councils and remote communities in the Northern Territory, and to the Local Government and Shires Association of New South Wales for the Local-e Online Action project which assisted local councils in New South Wales to develop and manage their websites.

The three Northern Territory projects were 'I've Got Email 2', '20/20 Connecting Communities' and 'NT Connect'. All three projects provided advanced online services to the target communities, including assistive technologies for people with disabilities.

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Telecommunications Service Inquiry response—regional mobile phone initiatives

Increased terrestrial mobile phone coverage

Through the $22.757 million Towns over 500 program, the Australian Government is subsidising the extension of terrestrial mobile phone coverage to 131 regional towns with 500 or more residents.

While Telstra experienced continuing delays in gaining planning approvals for new infrastructure in some towns, infrastructure installations were completed during 2005–06 in three towns benefiting 2300 residents in all. This brought the total to receive new or enhanced coverage through the program to 129 towns by 30 June 2006.

The remaining two sites were in construction at year end, with construction expected to be completed in August 2006.

With the completion of these programs, terrestrial mobile phone coverage will be available to 98 per cent of the Australian population and 20 per cent of the Australian landmass.

Improved mobile phone coverage along regional highways

Through the $19.1 million Selected Regional Highways initiative, the Government subsidised the extension of mobile phone coverage to 62 lengths along 34 regional highways. The roll-out of new services under the agreement was completed in October 2005.

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Telecommunications Service Inquiry response—National Communications Fund

Improved access to telecommunications

Improvements in telecommunication infrastructure

The National Communications Fund provided $50 million over four years from 2002–03 to 2005–06 to support significant telecommunications projects in the education and health sectors in regional Australia. It provided high-speed bandwidth to health and education institutions in regional areas, producing significant benefits to local government, business and community groups. Schools, specialist teachers and telehealth consultants are taking advantage of high-speed Internet and videoconferencing capacity and can access online education and training resources.

Eight projects were funded across all states and the Northern Territory. All had completed the roll-out of telecommunications infrastructure by the end of 2004–05 and six had also completed service installation. The remaining two projects, in South Australia and Queensland, were completing service implementation in 2005–06.

A final evaluation of the Fund was commenced during the year and will be completed in 2006–07.

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Telecommunications Service Inquiry response—consumer representation

Appropriate activities by consumer representatives

Under subsection 593(1) of the Telecommunications Act 1997, the Minister may make grants to assist the representation of consumers' interests in telecommunications issues. The objectives of these grants include support for consumer representation in the development of industry codes and standards.

Grants of $700 000 were approved for consumer bodies under the consumer representation grants program during the year, including more than $67 000 in sitting fees for consumer representatives on the Australian Communications Industry Forum Consumer Advisory Council and the Disability Advisory Board.

Recipients of these grants reported that the funding had supported their activities in a number of areas including participation in a range of meetings, involvement in working groups, and attendance at conferences and other forums. It also assisted those groups to undertake a number of communications activities including a range of discussion papers and submissions, and the publication of journal articles and newsletters.

Funded organisations ran a number of conferences to increase consumer's awareness of their rights and telecommunications opportunities.

The conferences also provided valuable advice to the Government about consumer views on a number of key issues.

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Telecommunications Service Inquiry response—telecommunications research

Research published

Under subsection 593(2) of the Telecommunications Act 1997, the Minister may make grants to organisations or persons to undertake research into the social, economic, environmental or technological implications of developments relating to telecommunications.

In 2005–06, the Department committed grants totalling $99 983 under the Telecommunications Research Program to two organisations. The University of South Australia will carry out research into the feasibility of capturing and reassembling VOIP packets for a computer or network after a VOIP conversation has occurred, and into the implications of this for privacy and law enforcement. Novita Children's Services Inc was funded to develop a network for providing a customised and effective telecommunications solution for people who have limited dexterity. It is anticipated that the research reports will be made public in 2007.

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Regional Telecommunications Inquiry—Coordinated Communications Infrastructure Fund

Roll-out of new infrastructure and services under the Coordinated Communications Infrastructure Fund

The Coordinated Communications Infrastructure Fund (CCIF) program forms part of the Australian Government's commitment to implement the National Broadband Strategy. The fund includes $21.988 million to provide for infrastructure projects that improve broadband capability for the delivery of health, education and government services in regional communities. The CCIF funding was aimed at supporting the development of broadband infrastructure and promoting further investment in broadband networks across regional areas of Australia. Funding was targeted to projects that deliver strategic benefits to regional communities.

Projects funded through the CCIF deliver high-speed bandwidth to health and education institutions, business, local government and Indigenous and community groups in regional and rural areas (see case study, page 130). Seven preferred applicants had been announced in the first round in April 2004, and six applicants were funded in the second round in April 2005. About 92 communities will benefit from round one of the program, and 48 communities will benefit from round two. CCIF expenses of $3.178 million were incurred in 2005–06.

Under the program guidelines, CCIF funding must at least be matched by funds from the project partners. Actual funding allocated to infrastructure projects under both funding rounds was more than matched by project partners, as shown in figure 2.29.

Figure 2.29 Coordinated Communications Infrastructure Fund funding

CCIF	Commonwealth funding ($m)	Other funding ($m)	Total value ($m)
Round 1	13.8	25.2	39
Round 2	8.1	18.3	26.3

Of the seven networks funded under the first round of the CCIF, three are now operational. The projects completed in 2005–06 were Loddon Mallee Connect (Victoria), District Council of the Yorke Peninsula (SA) and Charles Darwin University (NT). The remaining CCIF projects are expected to be completed in 2006–07 and 2007–08.

Research continued into evaluating the social and economic impact of broadband in four program areas—Yorke Peninsula (SA), Loddon Mallee (Victoria), Gold Coast (Queensland) and Gloucester (NSW). The Department contracted Roy Morgan Research to perform a household survey of broadband use and selected Management Effect to perform a series of focus groups in November 2005.

Information collected from this research, and from in-depth interviews with stakeholders, will provide the basis for the four broadband case studies which will describe the early impact of broadband use in these rural, regional and remote areas. The early impacts of broadband include more convenient access to a range of government services, improved social cohesion, greater retraining opportunities in isolated communities, accessing new markets and more flexibility in where Australians choose to perform their work.

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Regional Telecommunications Inquiry—Demand Aggregation Brokers

Improved access to broadband

The $7.2 million Demand Aggregation Brokers (DAB) program involves a network of national, state and territory and community brokers to undertake demand aggregation initiatives resulting in the provision of new broadband infrastructure and services. All the projects are complete or are near completion, and grants of $3.639 million were made during 2005–06.

The three core elements of the program are:

• brokers who work on multi-jurisdictional broadband initiatives, targeting priority areas such as the health, education, and local government sectors;
• state and territory based brokers who work with governments and communities to develop demand aggregation projects across sectors and within specific geographic areas; and
• community brokers who work with communities on the development and implementation of specific broadband demand aggregation projects.

Aggregate estimates compiled from projects funded under the DAB program indicate that approximately 900 000 people in more than 300 communities now have access to broadband. Brokers have achieved those results by aggregating necessary threshold demand to enable many local exchanges with ADSL. For example, more than 260 exchanges have been ADSL enabled in regions covered by the DAB program and it is expected a further 50 exchanges will be enabled by the end of 2006.

The program has also helped new wireless service providers to enter the market and develop regional broadband solutions for areas that may not otherwise have been able to afford them. More than 60 new wireless services are now being delivered in DAB areas. The price of these services is mostly comparable with prices in metropolitan areas.

Broadband access and usage costs have been lowered not only by facilitating competitive services offerings but also by encouraging value added service solutions such as VOIP (voice over Internet protocol). These have delivered further savings to customers. The DAB program helped spread awareness of broadband and its social and economic benefits throughout regional Australia. This has been critical in driving up demand for broadband in more remote and isolated communities. It helped communities in regional areas to better identify their broadband needs, such as what applications to use.

A total of 33 projects were administered under the program. Some notable projects are set out below.

• The South West Community Broadband Broker was appointed by the Connect Southwest Association to raise community awareness on the benefits of broadband, to aggregate demand and to negotiate broadband options on behalf of each community in 12 local government areas in south-western Western Australia.
• The Barossa and Light Regional Development Board Broker project identified clusters of business with compatible telecommunications requirements and matched them with the best solution to improve communications technology throughout the region.
• The Gold Coast City Council Broker was employed to build a business case for connectivity in the Hinterland communities of the Gold Coast south of Brisbane. As a result, about 95 per cent of people now have access to broadband, compared to 30 per cent at the commencement of the project.
• The Loddon Mallee Health Alliance Community Demand Aggregation Broker project has resulted in 4919 more households and 2480 more businesses across the local government authority areas gaining access to broadband Internet.
• The Gloucester Online project funded a broker to promote the benefits of broadband to the wider Gloucester community and to use aggregated demand to persuade service providers to invest in the region. The project has resulted in cutting-edge wireless mesh broadband technology being made available, four exchanges being ADSL enabled, and six new towns having access to broadband.

Three National Broadband Advisers have focussed on multi-jurisdictional broadband initiatives in the health, education and local government sectors respectively.

The Education Adviser has worked closely with schools, universities and vocational education and training associations to promote better practice in bandwidth procurement and to explore ways that the deployment of fibre infrastructure by the higher education and research sector can provide wider community benefits. The initial 18 months of the position, from April 2004 to September 2005, was funded by the Department while the Department of Education, Science and Training is funding the subsequent 18-month period (October 2005 to March 2007).

The Health Adviser facilitated the engagement of health stakeholders in the discussion and planning of broadband initiatives, as well as providing advice on how best strategically to coordinate financially sustainable broadband strategies for the health sector. The term of the Health Adviser expired on 31 December 2005.

The Local Government Adviser provided advice on the best way to improve local government's capabilities to make effective investment in, and use of, broadband infrastructure and applications, and provided input into the design of Australian Government programs including Clever Networks. The term of the Local Government Adviser expired on 30 June 2006.

State and territory broker funding agreements were signed with New South Wales, Victoria, Queensland, South Australia, Western Australia and the Northern Territory.

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Regional Telecommunications Inquiry response—extending mobile phone coverage

Increased terrestrial mobile phone coverage

Telstra continued to provide new or improved mobile phone coverage to 62 locations in regional Australia in accordance with a $15.6 million funding agreement with the Australian Government signed in August 2004. This agreement is jointly funded through the Telecommunications Service Inquiry response—regional mobile phone initiatives. Completion of the rollout is targeted for 30 November 2006.

At 30 June 2006, 48 locations providing new or improved CDMA coverage to an estimated 12 000 people had been completed. These locations provided approximately 36 000 square kilometres of coverage.

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Regional Telecommunications Inquiry response—Satellite Phone Subsidy Scheme

Improved access to telecommunication services

The Satellite Phone Subsidy Scheme was established as an outcome of the Telecommunications Services Inquiry. It was extended for a further three years with additional funding of $3 million following the Regional Telecommunications Inquiry.

During 2005–06, a subsidy of up to $1500 was available to eligible applicants, depending on the monthly access plan selected.

A total of 4091 applications were approved during the year, well above the level in 2004–05 when 3399 applications were approved. The high level of demand for the subsidy necessitated the rephasing of $1.0 million of the 2006–07 allocation to 2005–06.

Subsidies under on the Satellite Phone Subsidy Scheme during the year was $4.1 million compared to $2.91 million in 2004–05. Of the $4.1 million in 2005–06, $2 million was funding originating from the response to the Regional Telecommunications Inquiry and $2.1 million was provided through the Mobile Connect initiative announced by the Government in August 2005.

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Regional Telecommunications Inquiry response—ICT training and technical support

Improved access to ICT training and technical support for people living in very remote Australia

Under the IT Training and Technical Support program, basic ICT training and technical support is made more accessible to people and organisations in very remote areas of Australia. An expected 15 000 people in approximately 500 communities will benefit from this program and a total of $8.79 million has been allocated to the program over four years. The program is due to be completed by 30 June 2007.

Nine projects delivered services during 2005–06 and it was reported that 2457 people had attended formal IT training courses and received technical support delivered during the year.

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Metro Broadband Blackspots Program

All metropolitan customers are able to access broadband services at metropolitan comparable prices

The Metropolitan Broadband Connect program is intended to assist people who are unable to access broadband services at prices similar to those available to the majority of metropolitan customers.

Implementation of the Metropolitan Broadband Connect program was delayed by a number of factors, including the time required to register providers under the program. As a result, the first funding period of the program was significantly shortened and funding of $7.369 million for the 2005–06 financial year was rephased to 2006–07.

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International organisations contributions

Appropriate issues raised at International Telecommunication Union and Asia–Pacific Telecommunity meetings

Australia contributed more than $4.9 million to the International Telecommunication Union (ITU) in 2005–06.

In December 2005, funding of $595 087 was committed to ITU support for telecommunications and ICT regulatory and governance activities in the Asia– Pacific. The activities will help address the needs of Asia–Pacific countries consistent with the outcomes of the ITU's World Telecommunication Development Conference held in Qatar in March 2006.

The Department participated in the ITU's work to develop international telecommunication standards, focusing on the areas important to Australian public policy, industry and consumer interests. In particular, the Department, in conjunction with ACMA, participated in ITU study groups addressing the significant new challenges arising from the shift to Internet protocol-based networks and next generation networks.

Australia has continued to pursue improvements in the operations and administration of the ITU. This has included managing the national preparations and participating in the Asia–Pacific region's preparations for the ITU Plenipotentiary Conference to be held in Turkey in November 2006.

The Asia–Pacific Telecommunity (APT) is a regional communications development and cooperation organisation established by treaty. The APT General Assembly was held in Pakistan at the end of 2005 and the Department participated in developing the strategic direction for the organisation for the next three years.

Australia, through the Department, contributed $255 238 to the APT in 2005–06 for the purpose of developing and supporting capacity-building projects that assist policy makers and regulators in the region to improve access, security and governance within the sector.

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Television Black Spots and Television Black Spots—Alternative Technical Solutions

Removal of television black spots

The Television Black Spots Program provided improved access to analogue television services in areas where television reception was poor. The program finished on 30 June 2005. New services had commenced in 237 black spots by 30 June 2005, above the program target of at least 200 black spots. Arrangements were made to complete a further five facilities after the close of the program. These five facilities were completed by 30 June 2006.

As well as establishing new services, the program funded the replacement of obsolete equipment at 182 existing self-help retransmission sites, 106 of which serve Indigenous communities.

The Television Black Spots—Alternative Technical Solutions program provides alternative solutions such as digital television services or satellite reception to a small number of black spots that could not be assisted under the Television Black Spots Program. There are 14 projects being managed under the Television Black Spots—Alternative Technical Solutions program.

A total of $347 257 was approved for black spots projects in 2005–06, including $86 524 to enable remedial works to be undertaken at existing Television Black Spots program facilities.

As at 30 June 2006, a combined total of 252 projects had been approved for funding under both programs. Of these projects, 249 had been completed.

In 2005–06, new facilities commenced transmission, or alternative solutions were implemented, in 13 black spots compared to 39 black spots in 2004–05 for both programs.

Figure 2.30 has the number of television black spots fixed under the programs, listed by year and cumulatively.

Figure 2.30 Number of television black spots fixed under the Television Black spots program

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ABC and SBS Digital Interference Scheme

Timely payments to ABC and SBS under the digital interference scheme

The ABC and SBS Digital Interference Scheme reimburses the costs incurred by the national broadcasters in contributing to the Interference Management Strategy. The Strategy assists consumers to overcome interference problems associated with the introduction of new digital television services. Free TV Australia administers the Strategy on behalf of all participating broadcasters, including the ABC and SBS.

The Department transfers funds to the national broadcasters when their strategy-related costs are confirmed. Grants in 2005–06 totalled $17 454.

The average period between the receipt of invoices, or relevant supporting information, and payment approval was 17 days.

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Indigenous broadcasting

Access to Indigenous broadcasting services

Indigenous broadcasting in Queensland. The new organisation brings to seven the number of remote Indigenous media organisations that provide training, technical support and networking arrangements for broadcasting services in 80 remote communities throughout Australia.

Imparja Television, an Indigenous-controlled commercial television service, receives funding under the program to assist with the costs associated with the uplink of networked Indigenous radio programming and the fledgling Indigenous Community Television Service.

In 2005–06, program funding of $13.327 million supported 99 activities by Indigenous-controlled media organisations.

The number of services funded in each state is set out in figure 2.31 below.

Figure 2.31 Number of Indigenous broadcasting activities funded (by State)

The funding distribution in each state is set out in figure 2.32 below.

Figure 2.32 Indigenous Broadcasting Program 2005-06 allocation (by State)

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National Transmission Network residual funding pool

Access to broadcasting services by specific target group audiences

The National Transmission Network (NTN) residual funding pool was created as part of the network sale arrangements to ensure that Government commitments were met in relation to transmission arrangements for national, community and remote commercial broadcasters, and for Radio for the Print Handicapped.

These commitments have now been discharged or, where appropriate, funding agreements have been put in place to ensure that they are met and to provide ongoing access to broadcasting services. There were five grants totalling $856 000 in 2005–06.

The NTN residual funding pool funding was provided to the ABC under a funding agreement in late June 2006 to purchase three emergency power plants in Victoria and two portable FM radio transmitters, one each for Western Australia and Queensland, to support the 'Continuity of ABC Local Radio'. The total funding commitment to the ABC for this initiative is $547 696, of which $173 542 was expensed from the NTN residual funding pool in 2005–06.

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Commercial Radio Black Spots Program

Removal of commercial radio black spots

The $5 million Commercial Radio Blackspots program (including departmental running costs) commenced in 2002–03 and gave effect to a 2001 Government election commitment to provide assistance to commercial radio broadcasters to enable them to establish or improve services in areas that have not been commercially viable for the commercial licensee.

Funding rounds totalling $110 700 were approved in 2005–06 for four black spot projects serving four communities in New South Wales and Queensland.

The program finished on 30 June 2006 with a total of 109 projects completed and total grants funding of $3.023 million throughout all states and the Northern Territory. Numbers of funded projects over the six program funding rounds are set out in figure 2.33.

Figure 2.33 Number of funding projects over six program funding rounds

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Regional Equalisation Plan

Assistance to regional and remote commercial television broadcasters for digital broadcasting

The Regional Equalisation Plan, announced by the Government in the 2000–01 Budget, provides more than $200 million over 13 years to help regional and remote commercial broadcasters to introduce digital terrestrial television services.

The plan meets half of both the capital costs and the eight years operating costs of the digital transmission of existing broadcasting services.

The plan primarily comprises licence fee rebates administered by ACMA. These totalled $23.57 million in 2005–06.

In the case of smaller markets where there is less revenue and hence lower licence fees, the licence fee rebates are supplemented by cash grants administered by the Department. The grants enable licensees in these markets to achieve the level of annual Regional Equalisation Plan assistance agreed by the Government.

A further $360 000 in cash grants was provided in 2005–06 under the plan to Imparja Television to assist with the significant equipment costs it is incurring in advance of its digital conversion. A further $300 000 was provided to help licensees in smaller markets to establish digital transmission facilities.

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NetAlert Limited

Promote a safer Internet experience

Total funding provided to NetAlert in 2005–06 was $1.876 million and included $1.330 million for the delivery of the National CyberSafe Program, a two year training roadshow, and an information campaign known as NetAlert Expo aimed at parents, teachers and community groups. NetAlert Expo will visit community centres, libraries and schools in every state and territory in Australia. The balance of the funding consists of $500 000 for NetAlert's core operational activities and $46 000 for the budget estimates and framework review, which enables NetAlert to meets its budget reporting obligations.

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Community broadcasting training fund

Access to training by targeted groups

The Community Broadcasting Foundation was provided with $0.5 million in 2005–06 to progress the Training Fund which is now in its implementation phase. In 2005–06, the funding was used for broadcast training, pilot training projects, training development and training resource development. In Round 1, which closed on 21 April 2006, funding was provided for 86 trainees, 76 of whom were from designated target groups—regional, rural and remote stations, and Indigenous, ethnic and Radio Print Handicap trainees. Round 2 was open for applications at 30 June 2006.

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Community broadcasting transmission support

Access to broadcasting services by community broadcasting audiences

Funding of $1.5 million was provided to the Community Broadcasting Foundation in 2005–06 to assist community radio broadcasters with transmission costs. The Community Broadcasting Foundation held two funding rounds and made a total of 164 grants to community broadcasters located in urban, regional and remote centres across Australia.

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ICT Centre of Excellence program

The Department administers the funding arrangements for the ICT Centre of Excellence, National ICT Australia, in collaboration with the Australian Research Council. The centre received a total of $124.8 million from the two agencies over 2001–02 to 2005–06 under the first tranche of the Government's Backing Australia's Ability measures.

National ICT Australia's mission is to undertake information and communications technology research at the highest international standard and scale. It conducts research training through an enhanced PhD program, has as a key objective the commercialisation of its own research and forges mutually beneficial linkages with private sector research organisations, major corporations, small and medium enterprises and public sector agencies.

Further funding of $249.48 million will be provided for the centre's operation from 2006–07 to 2010–11 as part of the second tranche of Backing Australia's Ability.

Quantity and quality of research, research training, collaboration and commercialisation

The centre's research program commenced with 11 programs in 2003 based on the contributions of staff from the University of NSW and the Australian National University. By January 2006, there were 196 researchers and 77 technical support staff working on a portfolio of 55 research projects across 16 programs at laboratories in Sydney (two), Canberra, Melbourne and Brisbane.

National ICT Australia published 126 research papers in peer-reviewed journals during 2005, an increase of 76 over 2004. A further 438 papers were presented at major international conferences related to the centre's main disciplines and published in related conference proceedings over the 2005 calendar year. In addition, 153 international researchers visited the centre to collaborate on research.

Research training

At 31 December 2005, 209 students were endorsed under the National ICT Australia program, an increase of 77 over 2004, and the first two PhD students had graduated.

Collaboration and commercialisation

National ICT Australia establishes links with business, major research organisations and universities in Australia and overseas.

It has established an outreach program to small and medium enterprises, appointed small and medium enterprise liaison officers and established collaborative research projects with the Defence Science and Technology Organisation (DSTO). In September 2005, it organised the third of the annual ICT research forums jointly with the Commonwealth Scientific and Industrial Research Organisation (CSIRO), DSTO and the Council of ICT Cooperative Research Centres.

During 2005, collaborative research and development projects were undertaken with IBM, Ericsson and NTT DoCoMo, as well as with universities and research institutes in Canada, Germany, Switzerland, the United Kingdom and the United States.

National ICT Australia lodged 23 patent applications in 2005, an increase of 19 over 2004.

In 2005–06, National ICT Australia continued to receive external revenue sources through cash and in-kind support from a number of commercial partners and received direct payment for services provided in addition to contributions from its members.

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Advanced Networks Program

The Advanced Networks Program was established in 2000–01 as part of the $153.1 million Building on IT Strengths program which was funded from the proceeds of the partial sale of Telstra. The program's objective is to contribute to the development of advanced network infrastructure that will deliver long-term economic benefits. It supports the development, trialling and demonstration of advanced networks, experimental networks and test beds.

Funding for the program was $37.230 million over three years to support three projects, the Centre for Networking Technologies for the Information Economy (CeNTIE), GrangeNet and m.Net. Additional funding of $20 million was provided for three years from 2004–05 under Backing Australia's Ability.

Throughout 2005–06 the three projects continued to use the networks established in the first phase of the program for research and applications development, exploring commercialisation opportunities and supporting the Government's e-research agenda.

High use of facilities

The Advanced Networks Program networks have been used extensively in research and applications development. CeNTIE's focus groups are building on the Centre's network and applications research to develop and demonstrate new business systems covering e-health, digital media, enterprise systems and regional Australia connectivity. Participants in the focus groups come from many large and small companies as well as from government agencies and research organisations.

GrangeNet is supporting research projects in Instrument Grid and tele-science, Computational Grids, Access Grid, Data Grid, Collaborative Working and Grid Middleware/security. The projects serve researchers in areas as diverse as particle physics, linguistics and sports coaching.

Thirty-three application and content development companies are working under the m.Net umbrella to develop and commercialise rich-media mobile services. To position itself for commercial sustainability as required in its funding agreement, m.Net is establishing marketing relationships with overseas firms to market Australian output internationally. m.Net is also expanding its position as a mobile services enabler for carriers and media companies.

Facilities have had positive impact on the work of researchers

In 2005–06, the three Advanced Network projects have facilitated a significant amount of research activity.

CeNTIE is conducting technology projects in continuous media web services, telepresence, network research and trusted systems. CeNTIE has developed and installed a digital tele-presence system, the Virtual Critical Care Unit (ViCCU), which uses video over Internet protocol technology to enable a specialist located at one hospital to supervise a medical team located at a peripheral hospital. Following successful trials of the system, CeNTIE entered into an agreement with Telstra in 2006 to licence ViCCU as a managed service for use in hospitals across Australia.

CeNTIE has also collaborated with the University of Melbourne to develop a virtual surgical training environment to train surgeons in temporal bone drilling utilising Haptic Workbench technology, a networked technology that simulates feel. In 2006, CeNTIE and the University entered into an agreement with Medic Vision (a company that provides specialty medical products) to license the joint project technology. The agreement enables the production of a commercial surgical training simulator.

GrangeNet has delivered opportunities for Australian researchers to collaborate at high speed, without the constraint of cost, using Australia's first high performance optical research network. This enabling technology offers a framework for developing grid services, the opportunity to test-drive high speed networks, and incentive to explore novel techniques and forge new collaborations. GrangeNet has provided networking solutions, provided storage on-demand, promoted the uptake of IPv6 and hosted the first Australian IPv6 Summit.

Commercial carriers have implemented 3G mobile telephone applications following m.Net's pioneering of the technology in Australia. m.Net has continued its range of activities supporting the testing, trialling, demonstration and commercialisation of next-generation wireless broadband applications and mobile content development, and its mobile services software programs, a mobile applications development course at universities and a marketing program. Examples of content development supported by m.Net include mini-series and short films in multi-episode format designed for delivery to advanced mobile telephones.

Leveraging of non-Australian Government external funding

Over the initial three years of the program, the Government's investment of $37.230 million was supplemented by more than $75 million in cash and in-kind contributions by non-Commonwealth consortium members of the three projects. The Government's funding of $20 million from 2004–05 to 2006–07 is similarly being supplemented by external contributions. In 2005–06 the non-Commonwealth consortium members contributed $2 million in cash and another $7 million in kind.

Contribution to national backbone network for research and education

Under the first phase of the program, the networks established by CeNTIE and GrangeNet provided the first very high-capacity (10 gigabits per second) network in the Southern Hemisphere. The two organisations interconnect to form a national research backbone from Brisbane to Perth.

In 2005–06, this backbone continued as the principal national high-capacity research link, also enabling international connections through Australia's Academic and Research Network (AARNet) to the major research and education networks in North America, Europe and Asia.

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ICT Incubators Program

After the $75.870 million Building on IT Strengths (BITS) Incubator Program was established in 2000–01 as part of the $153.1 million BITS program, a further $34.130 million over four years was provided in 2004 under the ICT Incubators Program to support eight of the better performing BITS incubators. The program's objective is to accelerate the growth of innovative and high potential ICT start-ups by providing seed capital and business advice to raise co-investment and identify key customers.

ICT start-up companies assisted

From 30 June 2005 to 31 March 2006, ICT incubators considered 459 applications of which 23 ICT start-ups were accepted as incubatees and 23 reached graduate status. As shown in figure 2.34, since 2000–01, incubators have considered 5300 applications, of which 400 ICT start-ups were accepted as incubatees and 246 became graduates of the program.

Figure 2.34 Applications, acceptances and graduates from the ICT Incubators Program and the former Building on IT Strengths program

	Up to 2000-01 BITS	2001-02 BITS	2002-03 BITS	2003-04 BITS	2004-05 ICTIP (to March 2006)	2005-06 ICTIP	Total*
Applications	1516	1110	927	656	632	459	5300
Acceptances	63	98	102	81	33	23	400
Graduates	4	32	88	64	35	23	246

* Numbers above revised from previous years as full year figures became available.

NB There were 11 incubators under the BITS Incubator Program while the ICT Incubators Program has eight.

Stronger ICT commercialisation

The ICT incubators have reported raising $51.8 million in private co-investment for incubatees, compared to $43.8 million in 2004–05, which brought total private co-investment to $222 million since 2000–01. In addition, incubatees successfully applied for $6.1 million in government grants compared to $14.1 million in 2004–05, which brought the program total to $45.5 million since 2000–01.

Impact of funding

The ICT Incubator Program addresses an identified market failure where venture capital and other finance providers have displayed continued reluctance to invest in early-stage ICT companies. Consequently, ICT start-ups have found it difficult to obtain business advice in their critical early years to develop networks and locate leading edge customers, business partners and capital providers.

The ICT incubators have an important role in Australia's innovation system in providing advice to bring high potential ICT start-ups to the attention of capital providers and to commercialise new technologies into viable businesses. Incubators have reported that the annual sales revenue of incubatees increased by $29 million, employment increased by over 280 and $42 million of exports have been achieved since the program started. In addition, incubatees have been recognised in a number of local and international industry awards.

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Intelligent Island

During the year, the Department and the Tasmanian Department of Economic Development continued jointly to oversee the implementation of the memorandum of understanding that governs the $40 million Intelligent Island Program. Under the memorandum of understanding, the Department of Economic Development is responsible for administering the program.

Following extensive consultations in 2005 with the Tasmanian ICT industry on the future directions of the program, the Australian and Tasmanian Governments announced in December 2005 that remaining Intelligent Island funds would be allocated between a proposed $15 million CSIRO ICT Centre and a new Market Access and Partnership Program (MAPP).

CSIRO was invited to submit a proposal to establish a Tasmanian ICT Centre in December 2005 and responded in February 2006. An independent expert panel assessed the proposal, including consulting with a range of Tasmanian ICT stakeholders. In May 2006, the Intelligent Island Project Executive agreed that negotiations commence for a funding agreement with the CSIRO.

MAPP is a competitive, merit-based grant program that will support Tasmanian ICT companies to develop and commercialise products and services for a global market. It will provide up to $18 million in grants. Draft guidelines for the program were released for public comment and applications for the first round of MAPP were called in May 2006.

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Information Technology Online

Innovative projects funded under the Information Technology Online Program

The Information Technology Online program is a competitive funding program designed to accelerate national adoption of e-business solutions, especially by small and medium enterprises, across a broad range of industry sectors and geographic regions.

During 2005–06, funding agreements for 12 new projects involving 81 organisations were finalised. These projects were selected to demonstrate the practical application of ICT innovation across the economy. Because of their level of innovation, a number of projects supported may also make a significant strategic contribution to Australian industry.

Two projects from previous funding rounds demonstrate this potential.

• The eNotification system, developed by the Cancer Institute of NSW, aims to send electronic notifications of cancer diagnoses electronically from pathology laboratories to the NSW Central Cancer Registries (CCR). The Institute partnered with Symbion and the South Eastern Area Laboratory Service to pilot such a system. All cases of cancer are notified by law to the NSW CCR. The Institute provides cancer incidence and mortality data for doctors, health service planners and researchers. This data was sourced from some 75 laboratories that provide pathology reports describing the type of cancer.
• The National Demonstration of Electronic Product Code (EPC) Network, developed by CSIRO, aims to study the application of an EPC network in the supply chain. It is the world first project demonstrating the benefits of the entire Radio Frequency Identification (RFID)/ EPC network of technology, systems and standards. The benefits include improved management of assets, greater business responsiveness to events that affect operations and enhanced capacity to make decisions using real time information. These benefits, in turn, help generate efficiencies and savings across various sections of the supply chain.

Projects completed successfully

A total of 14 projects from rounds 7, 9, 11, 12 and 13 were successfully completed in 2005–06. Case studies of successful projects are available on the Department's website at www.dcita.gov.au/itol

Take-up of business-to-business e-commerce by business in targeted sectors

Seventy-three applications were received in one funding round held in 2005–06. Twelve projects in round 14 were awarded to the value of $1.965 million from the agriculture, theatre, arts and crafts, transport, health, construction and building industry sectors.

In addition, strong interest in the program is shown by the large number of applications received, the increase in the number of ITOL News subscribers and the number of hits on the program's web pages.

Positive feedback on the program

An internal survey of ITOL funding recipients found that departmental staff are seen as helpful and courteous, and recipients found their feedback to have been valuable and timely. Recipients rated the program's application process, reporting requirements and administration positively for clarity, simplicity and modest cost.

Document ID: 52618 | Last modified: 6 February 2008, 1:09pm