Mr Tanner asked the Minister representing the Minister for Communications, Information Technology and the Arts, upon notice, on 4 February 2003:

(1) What revenue does Telstra derive annually from 190 numbers.

(2) What revenue does Telstra derive annually from all international premium rate billing services.

(3) Can Telstra provide a breakdown on the annual revenue derived from different categories of 190 numbers, including chat, friendship, sex, psychic and information numbers.

(4) Does Telstra check 190 number service providers to ensure they are not providing services that are illegal; if so, what checks are made; if not, why not.

(5) What checks does Telstra make on other premium rate billing services, including internet service providers, to ensure that the content such services are providing is not illegal.

(6) Has Telstra considered terminating service agreements with 190 number providers, including Mediatel Services and Sound Advertising, who have had a large number of breaches against the Telephone Information Services Standards Council code of practice; if not, why not.

(7) What steps does Telstra have in place to ensure that customers do not receive unexpectedly huge bills as a result of using 190 numbers and other premium rate billing services.

Mr McGauran (Minister for Science) —The Minister for Communications, Information Technology and the Arts has provided the following answer to the honourable member's question:

(1) Telstra has advised that revenue information for 190 services is of a commercially confidential nature.

(2) Telstra has advised that it does not provide any international premium rate billing services, and therefore does not derive any revenue from them.

(3) No. See answer to part (1).

(4) Telstra is required by Part 9A of Telecommunications (Consumer Protection and Service Standards) Act 1999 to ensure that telephone sex services operate on the 1901 number range. Telstra must also ensure that consumers use a personal identification number (PIN), or other restricted access system to access the 1901 number range.

Telstra has advised that it requires service providers issued with 190 numbers to comply with applicable legislation and the Telephone Information Services Standards Council (TISSC) Code of Practice in relation to telephone sex services.

Telstra has advised that, in order to ensure that it complies with its legislative obligations in relation to the 1901 number range, it routinely checks the advertising of 190 services in the mass media to ensure no providers of telephone sex services are operating outside the 1901 number range.

To date other premium rate services on the 190 number range are largely self-regulated, and Telstra advises that it refers questionable numbers to the relevant industry body, the Telecommunications Information Services Standards Council (TISSC).

This industry body has a code of practice that deals with the supply and advertising of premium rate and Internet dialler services using 190 numbers. The TISSC Arbitrator, who investigates complaints about 190 services, has the power to direct a content service provider to refund a consumer's payment, and even suspend or terminate a content service, where it finds that the provider has breached the code of practice. The Arbitrator may also refer complaints to Government agencies where it finds that there has been a breach of legislation that applies to premium rate services.

(5) All domestic premium rate services are provided on the 190 number range. Telstra has advised it does not currently provide other premium rate billing services. Details on checks made by Telstra on its premium rate services on the 190 number range are provided in the answer to part 4.

Telstra has advised that it has issued termination notices for existing Internet dialler services, effective on 25 August 2003. However, Telstra will consider limiting the scope of those notices to non-business content Internet diallers. This means that Telstra will consider new applications for business content Internet diallers and that business content Internet diallers may continue to be used.

(6) Telstra has advised that it has previously disconnected a number of 190 services considered to be in breach of the TISSC code. Telstra has further advised that any information relating to specific contractual arrangement with individual service providers is a commercial in confidence matter.

(7) Telstra has advised that it has controls in place to provide high usage warning reports that are used to alert customers to unusual 190 usage patterns in some circumstances.

Telstra has advised that it has a number of phone management tools available to its customers. These include permanent barring of particular call types (eg 190, International, national long distance), which is free for Telstra customers, as well as a call control tool that can be switched on or off with a PIN for a monthly charge. Telstra Call Control is free for eligible pensioners.

Telstra has also advised that, when customers take up a new Telstra service connection, they are advised of these safeguards and that they can avail themselves of these safeguards by calling Telstra.

Customers wishing to access 1901 telephone sex services require a PIN to make all such calls; and can apply for a PIN to these services by calling Telstra. Additionally, for people calling premium services with charges of more than $4 per minute, calls are automatically disconnected after 30 minutes to reduce prolonged use of a 190 service. During each call, a tone is played every five minutes to alert customers to the passing time.

The Government is introducing a range of regulatory measures, announced on 8 November 2002, to address consumer concerns about unexpected high bills for premium rate services (including 190 and international calls).

Regulations, which came into effect on 4 December 2002, give the Australian Communications Authority (ACA) a broad range of flexible powers to regulate the supply of premium rate services. The Minister has now directed the ACA to:

require carriers to bar access to premium rate services provided through 190 numbers where the total premium rate bill exceeds a specified monthly amount;

ensure that telephone companies inform their customers about the risks associated with premium rate services, and the pre-emptive action they can take to protect themselves from unexpected high bills; and

investigate as a matter of priority, and report back to the Minister by 31 July 2003 on the desirability of other measures that could be implemented, including:

the barring of access to international numbers or number ranges; and

specific requirements to be imposed in relation to Internet diallers; and the registration with the ACA of an industry code similar to thatcurrently operated by TISSC.