The content on this page and other DCITA document archive pages is provided to assist research and may contain references to activities or policies that have no current application. See the full archive disclaimer.

Output 3.1

Policy advice and program management which encourage competitively priced and reasonably accessible telecommunications and postal services

High-quality program administration

The programs administered by the Department in this output address communications needs in regional and underserved areas, access by people with disabilities and consumer representation and research.

The Department complied with the timeframes in its telecommunications grant deeds when making payments. All associated payments were made once progress reports were approved and satisfactory progress against all requirements of the funding agreement had been demonstrated, including a satisfactory financial acquittal.

The Department continued to meet the target of seven days for paying the National Relay Service provider the National Relay Service levy once levy funds were received from the Australian Communications Authority. This benchmark, established in 2003, has contributed to a more efficient and streamlined process for the payment of the quarterly service levy.

Programs for regional and other underserved areas

Broadband programs

Broadband Connect

Broadband Connect, together with the related Higher Bandwidth Incentive Scheme, was allocated an aggregate $247.1 million for the 2005–06 financial year. This comprised $102.3 million for the period to 31 December 2005 and $144.8 million for the period from 1 January 2006 when the HiBIS program became Broadband Connect. $221.8 million in subsidy expenses were incurred in 2005–06. Following a mid-year review, $20 million of the funds allocated to the Broadband Connect program was rephased to 2006–07.

During the year, the Department assessed 55 applications from Internet service providers wishing to become registered Broadband Connect retail and/or wholesale providers. At 30 June 2006, 19 providers were registered, four were approved but not yet formally registered, 21 were still being processed, seven were unsuccessful, three were being held for further consideration and one application was withdrawn.

There were more than 2600 calls from members of the public to the Broadband Connect 1800 hotline during 2005–06 and approximately 2400 email contacts.

In order to test the feasibility of a more cost effective and efficient approach to enabling sustainable metro-comparable broadband access for the remaining under-served areas and premises, in June 2006 the Department published a request for expressions of interest seeking industry responses to a proposal for an alternative infrastructure-based competitive grants program.

The Broadband Connect team. Front (L–R): Kirstin Dal Santo, Sue Strickland, Robbie Walker. Middle (L–R): Betsy Dickson, Kylie Scaysbrook, Lisa Horvarth. Back (L–R): Peter Hall, Nichole Ischenko, Farrah Martin, David Gibson.

Coordinated Communications Infrastructure Fund

The Coordinated Communications Infrastructure Fund (CCIF) program forms part of the Australian Government's commitment to the implementation of the National Broadband Strategy. The CCIF includes $23.7 million over four years to fund infrastructure projects that improve broadband capability for the delivery of health, education and government services in regional communities.

Funding deeds from the second of two CCIF rounds were finalised with the South Australian Department for Administrative and Information Services, BreastScreen Victoria and Optus— New South Wales TAFE during 2005–06. The remaining three (Kimberley, University of Newcastle and the Local Government Association of the Northern Territory) are being negotiated.

Demand Aggregation Brokers

The Australian Government funded the Demand Aggregation Broker program with $8.4 million over two years ending in June 2006. The program was aimed at building awareness of broadband and its benefits. It coordinated demand for broadband services at regional and sectoral levels to encourage investment in broadband infrastructure and the delivery of services.

Thirty-three projects were administered under the program. More than 60 milestones were met in the reporting period, an increase from 44 for the previous twelve months. Eighteen payments remain outstanding.

Telecommunications programs

Telecommunications Action Plan for Remote Indigenous Communities

The Telecommunications Action Plan for Remote Indigenous Communities (TAPRIC) was allocated $8.3 million over three years from 2002–03, with $3 million rephased to 2005–06 to trial the Community Phones Program (CPP) and the Community Phones Demonstration Program (CPDP). Through the CPP, 187 community phones were installed in remote Indigenous communities in the Northern Territory and Western Australia to provide accessible, prepaid phone access. Telstra has rolled out the community phones under funding deeds with the Department which have been varied to extend the program until the end of December 2006 to enable completion of the balance of the community phones.

The Department is also administering a funding agreement with the Mapoon Aboriginal Council (MAC) in relation to a demonstration pilot of innovative products and systems to improve telephone accessibility for remote Indigenous communities under the CPDP. Owing to delays resulting from cyclone activity, the demonstration pilot which had been scheduled to finish by 30 June 2006 will now be completed during 2006–07.

Of the $3 million allocated for 2005–06, $1.118 million has been rephased to 2006–07 in order to conduct the second phase of the CPP relating to communities requiring higher-cost delivery and to complete the Mapoon Aboriginal Council pilot.

IT Training and Technical Support program

The IT Training and Technical Support program, with funding of $8.79 million over four years from 2003–04, aims to make basic IT training and technical support more accessible in the very remote areas of Australia.

Eight projects in Queensland, South Australia, Western Australia, New South Wales and the Northern Territory commenced in 2004–05 and continued into 2005–06. Four of these projects had their funding increased during the year. A second competitive funding round was held resulting in a further project in the Northern Territory commencing in 2005–06.

There were grants of $2.51 million during the year for activities such as recruitment of trainers, establishing technical support facilities and promotional activities, and the delivery of training services.

National Communications Fund

The National Communications Fund was a $52.2 million program over three years from 2002–03 which supported significant telecommunications projects in the education and health sectors in regional Australia. Eight projects were funded across all states and the Northern Territory. Six of these were completed in 2004–05. The remaining two projects completed their residual activities during 2005–06 with the final payments totalling $6.13 million. Five of the eight projects were acquitted in early 2005–06 with the final three projects expected to be acquitted in the following year.

Satellite Mobile Phone Subsidy Scheme

Under the Satellite Phone Subsidy Scheme, the Department must assess whether applicants meet the relevant eligibility criteria and, if so, calculate the appropriate subsidy and process payments to registered handset providers.

During the year, 4091 applications were approved compared with 3399 in 2004–05. Expenditure of $4.1 million for 2005–06 with $2.1 million of this being sourced from the new Mobile Connect program, was well above that of the previous year ($2.91 million). Despite this very significant increase in the number of applications and payments made under this scheme during the year, program administration was efficient and relevant timeframes were met.

The scheme was originally due to end on 30 June 2007. However, following the mid-term evaluation, the Minister for Communications, Information Technology and the Arts announced on 15 May 2006 a series of changes to the scheme to take effect from 1 July 2006, in conjunction with its extension to 30 June 2009 and increased funding as part of the Mobile Connect program.

Under the revised scheme, administration arrangements are to be tightened to ensure the scheme's integrity. These changes will include introducing more formal funding agreements between the Government and satellite phone dealers and applicants.

Mobile phone infrastructure in regional Australia

The Department administers four contracts with Telstra which fund the enhancement or upgrading of mobile phone infrastructure in regional Australia. In 2005–06, the Department met Telstra each month to assess progress and deal with any issues that had arisen. Payments were made as contractual milestones were achieved.

For the Towns over 500 contract, extended delays in obtaining development approvals hindered completion of the infrastructure roll-out. Originally targeted for 2003–04, completion is now expected in August 2006. For the RTI Extended Terrestrial Mobile Phone coverage contract, program roll-out is not scheduled to be completed until November 2006.

The Mobile Phone Initiatives Section of the Regional Branch. Standing (L–R): Greg Lyons, Damian Kennedy and Sue Butt. Sitting (L–R) Sacha Isaac, Michael Lindfield, Mark Richens and Stella Jones.

Launceston Broadband Project

As outlined on page 124, funding for the Multimedia Development Lab component within the Launceston Broadband Project ended on 30 June 2006. The final report for the Project is due in the first half of 2006–07, with final payment to be made on receipt and acceptance of that report.

The $5 million Business Development Fund component of the project was administered on behalf of the Australian Government by the Tasmanian Electronic Commerce Centre. The Fund's Funding Deed concluded on 31 January 2006 and all funding to the Centre has been finalised.

An evaluation of the Multimedia Development Lab and the Business Development Fund is scheduled for 2006–07.

Access by people with disabilities

The Department administers the National Relay Service contract in consultation with the Australian Communications and Media Authority. The Australian Communication Exchange (ACE) provided the relay service and associated outreach service during 2005–06. ACE was contracted to provide the relay service component of the NRS from 1 July 2006 and WestWood Spice won the contract to provide the NRS Outreach service from 1 July 2006.

Consumer representation

As shown in figure 2.35, 17 applications were received for consumer representation grants in 2005–06. Approval deeds to allocate funding for 12 applicants were signed in 2005–06. Thirteen applications were received for telecommunications research grants and two of those were allocated funding in 2005–06.

Consumer representation grant recipients had to meet certain milestones such as attending meetings of the Australian Communications Industry Forum committees, participating in other relevant forums and publishing journals. The milestones were considered to be met only on receipt of a satisfactory progress report.

Consumer grants and research grants acquitted in 2005–06 related to grants allocated in 2004–05.

Figure 2.35 Section 593 consumer and research grants

Networking the Nation

The Networking the Nation program concluded on 30 June 2004. Over the seven years of operation, the program funded projects that addressed a range of telecommunications needs in regional, rural and remote Australia. Networking the Nation helped establish a base for further development by commercial operators and more targeted Government programs. More recent programs, such as the National Communications Fund, the Coordinated Communications Infrastructure Fund and the Higher Bandwidth Incentive Scheme, have built on that base.

At 30 June 2006, 750 of the 762 projects funded under Networking the Nation had been acquitted.

Back to top

High-quality and timely policy advice and ministerial services

The Department provided the Minister with briefings on a wide range of telecommunications and postal policy issues.

Extensive advice was provided to the Minister on policy and legislative issues relating to the sale of Telstra, enhancement of competition in the telecommunications market and consumer protection (such as the Do Not Call Register and credit management protection). Advice was provided on specific regulatory measures relating to Telstra, including new price controls, development of the operational separation framework, Telstra's local presence plan, Telstra payphones and the network reliability framework.

Policy advice was also provided on improving access to services in regional Australia.

The Minister was briefed on technological and market developments, on their potential impact on the delivery of services to consumers across Australia and on measures to improve access to services in regional and underserved areas. The Department's success in achieving its timelines is demonstrated at figure 2.36 below.

Figure 2.36 Advice provided within agreed timeframes

The Department handled a substantial increase in Ministerial briefings and Question Time briefs during the year. While timeliness in Question Time briefs improved, timeliness fell from the level achieved last year in other advice provided. The relevant areas are implementing improved oversight procedures to ensure that the appropriate standard is met in future.

Effective client satisfaction and consultation

Consistent with good policy development practice, the Department undertook consultation on a range of initiatives throughout 2005–06.

Do Not Call

A discussion paper was issued on initiatives to address unsolicited telemarketing, leading to the establishment of the Do Not Call register.

A departmental discussion paper on a possible Australian model for a Do Not Call register was released on 30 October 2005. Almost 500 submissions were received on the discussion paper. Following analysis of the submissions, a policy proposal was developed by the Department.

Connect Australia

Following the announcement of the Connect Australia package in August 2005, the Department undertook substantial consultation with key regional stakeholders, involving:

• the release of discussion papers on Broadband Connect/Clever Networks, Mobile Connect and Backing Indigenous Ability—all of which sought and elicited stakeholder comment, which the Department fully considered;
• a series of forums in all capital cities and two regional centres;
• Indigenous briefings across five states, including more remote areas;
• consultation through the National Broadband Strategy Implementation Group (NBSIG);
• state, territory and local government representatives via Online and Communications Council working groups; and
• bilateral consultations with many key industry stakeholders.

These consultations led the Government to decide to test an alternative approach to the delivery of the Broadband Connect program at this stage of its roll-out, with the Department releasing a request for expressions of interest to the industry in June 2006.

Backing Indigenous Ability

The Department released a discussion paper on Backing Indigenous Ability (BIA) on 27 March 2006 with a closing date for submissions of 19 May 2006. The paper formed the basis of consultations with Australian and State Government portfolios as well as industry and Indigenous communities. A total of 59 written submissions were received in response to the BIA discussion paper. In addition, a series of presentations were held in selected Indigenous centres and capital cities around Australia.

Clever Networks

A discussion paper was released on 17 November 2005 for public comment. Nation-wide 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.

Client satisfaction survey

The Department's client satisfaction survey reported that 92 per cent of clients of the telecommunications and post areas of the Department were satisfied with the service they received during 2005–06. This figure is down on the 2004–05 figure of 98 per cent, but is consistent with the 2003–04 figure of 91 per cent. The number of respondents has continued to increase, from 54 in 2003–04 and 87 in 2004–05 to 130 in 2005–06. The larger number of survey respondents reflects an increasing breadth and depth of services that are relevant to the Department's client base. A corresponding effort is to be undertaken to ensure the increased expectations of clients are met in future.

Eighty-two per cent of clients expressed satisfaction that the Department was contributing to the objective of competitively priced and reasonably accessible telecommunications services. This figure is broadly consistent with the corresponding figures of 83 per cent in 2004–05 and 85 per cent in 2005–06, noting that the number of respondents to this question has also increased significantly.

Back to top

Compliance with accountability standards

A performance audit conducted by the Australian National Audit Office of selected Telstra Social Bonus 2 and Telecommunications Service Inquiry Response Programs, including the National Communications Fund, was tabled in Parliament on 29 June 2006. The ANAO concluded that the Department's management of the seven programs subject to audit demonstrated a high level of compliance with the better practice principles of grant management.

During early 2006, the Office of Evaluation and Audit conducted an audit of the Community Phones Program part of the Telecommunications Action Plan for Remote Indigenous Communities. A final audit report had not been received by 30 June 2006.

To maintain the accountability of the Broadband Connect program, the Department continued to use audit/ financial and technical consultants.

Enex Test Lab analysed in detail the technical aspects of applications from Internet service providers seeking to register under the scheme. Enex Test Lab also:

• established and hosted a data-speed testing facility;
• advised and assisted in the implementation of a data-speed testing regime to ensure the scheme's providers met minimum requirements under the scheme and to allow customers to test their service speeds; and
• undertook and reported on data-speed testing of Broadband Connect providers.

These activities helped ensure compliance with the scheme's overall objectives.

WalterTurnbull provided expert advice on the financial viability of applicants seeking to register under Broadband Connect as well as undertaking regular scheduled audits and ad hoc audits as necessary. This helped the Department to ensure that the providers registered with Broadband Connect had the financial resources to continue providing services for the program's four-year term, as well as ensuring registered providers' compliance with the Broadband Connect funding deeds and guidelines.

Back to top

Research and analysis activities contribute to corporate objectives

Spatial Data Network

The Department's geographic information system, the Spatial Data Network, provided a valuable tool in the analysis and presentation of data relating to telecommunications and other initiatives in regional, rural and remote areas.

The network collects spatial and other data from departmental line areas, telecommunications carriers, service providers and state and territory governments, as well as acquiring base geographic data commercially. The Spatial Data Network has supported the Broadband Connect program, providing online maps so that people can see whether they are eligible under the scheme and can find Broadband Connect approved broadband service providers in their area.

The network was also used to determine priority areas for funding support under the Telecommunications Action Plan for Remote Indigenous Communities programs for Internet access and community phones.

Communications Technologies

Ovum Pty Ltd provided the Department with a report identifying and describing the effect of communications technologies likely to be developed and available in the Australian market over the next three to five years that would be relevant to Connect Australia programs. The report has been used to inform consideration of technical issues relating to Connect Australia.

Back to top

Effective budget management

As identified in the resources for outcome table on page 94, the overall price of output 3.1 was $30.293 million.

Regular evaluation of the budget outcome is conducted with managers and commentary on variations between budget, expenditure and forecasts are provided to senior management on a monthly basis.

Evaluations

Consumer and Research Grants

The telecommunications consumer representation and research grants are evaluated each year and project final reports are examined annually and analysed against the requirements of their funding deeds. This involves consulting stakeholders as appropriate.

National Communications Fund

A final evaluation of the National Communications Fund was commenced and substantially completed during 2005–06. The evaluation is to be finalised in 2006–07.

Satellite Mobile Phone Subsidy Scheme

A mid-term evaluation of the Satellite Mobile Phone Subsidy Scheme was undertaken by the Department's Research, Statistics and Technology Branch to examine the Scheme's appropriateness, efficiency and effectiveness against its strategic and operational objectives. The Scheme's overall administration and achievement of outcomes was also evaluated. The mid-term evaluation covered the period from August 2002 to May 2005 and included extensive consultations with satellite phone dealers and carriers, and a survey of applicants. The evaluation informed the changes to the scheme announced by the Minister in May 2006.

Community Phones Trial

A preliminary evaluation of the Community Phones Trial was made in early 2006. The evaluation assessed the trial's suitability for Indigenous communities and the procedures that were followed to plan, provide and maintain the services. An expert contractor conducted the review including visits to selected Indigenous communities on the Dampier Peninsular and Central Australia in March 2006. The evaluation reported that the Community Phones Program was successful and having a positive impact on communities, and identified possible enhancements to the program that are being progressively implemented. A final evaluation will be made later in 2006, bringing together results of the two evaluations.