Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Telecommunications Act 1991 - Australian Telecommunications Authority (AUSTEL) - Report - 1993-94


Download PDF Download PDF

1 9 9 4

Australian

Telecommunications

Authority

C om m onw ealth of Australia, 1 9 9 4

This w o rk is copyright. A part from any use as perm itted under the C opyright Act 1 9 68, no part m ay be reproduced by any process w ithout written perm ission from the Director Publishing and M arketing AGPS. Inquiries should be directed to the M anager, AG PS Press, Australian G overnm ent Publishing Service, GPO Box 84, Canberra, ACT 2 6 0 1 .

Designed by ITE W ang Creative C om m unications (0 3 ) 3 2 9 5 7 9 9 Printed by The Graphic Print Centre P/L, South M elbourne, Vic.

Δ AUSTELAUSTRALIAN TELECOMMUNICATIONS AUTHORITY

ANNUAL REPORT 1993-94

Report to the Minister for Communications and the Arts

OCTOBER 1994

A

7 October 1994

The Hon Michael Lee Minister for Communications and the Arts Parliament House CANBERRA ACT 2600

Dear Mr Lee

We have pleasure in presenting AUSTEL’s fifth Annual Report for the year ended 30 June 1994.

The end of the financial year marked the end of an era as we reviewed our first five years of operation, and AUSTEL’s original Chairman, Robin Davey, completed his term, moving on to a position as Regulator General with the Victorian Government.

His comments as retiring Chairman preface the report.

The first five years of AUSTEL’s operation have been groundbreaking ones, but greater tests lie ahead with a number of major issues to be resolved - not least the current Ministerial review which will determine the shape of the Australian telecommunications industry after 1997.

We particularly wish to acknowledge the contribution made by AUSTEL staff in developing and implementing AUSTEL’s programs and functions. The fifth year of operation presented many challenges, particularly as competition has become more intense in the industry, and AUSTEL itself has undergone significant changes in

terms of both organisational structure and key personnel.

This report has been prepared in accordance with the Government’s guidelines and is an accurate account of AUSTEL’s fifth year of operation.

Neil Tuckwell Acting Chairman

Bob Horton Member

ii

ABOUT THIS REPO RT

This is AUSTEL’s fifth Annual Report. The report has been developed with reference to our responsibilities as set out in Part 4 of the

Telecommunications Act 1991 ( the Act’).

AUSTEL’s responsibilities under the Act can be summarised as:

• the promotion of competition • the protection of the public interest and consumers • management of the numbering of

telecommunications services • licensing • technical regulation and technical standards • administration of the universal

service levy.

Each chapter details the achievements that AUSTEL has made in each of these areas over the past year, with relevant financial details provided in the Appendixes. An additional

chapter provides information on AUSTEL, the organisation, and the Report is prefaced by the retiring

Chairman’s summation, which looks at some of the major issues and achievements covered by AUSTEL during its first five years.

Under section 399 of the Act, AUSTEL is also required to report to the Minister on the effectiveness of competitive safeguards within the

telecommunications industry and the efficiency and adequacy of carrier performance. These are the subjects of a separate report entitled

Competitive Safeguards and Cartier Performance - generally known as the ‘399 Report’.

REPORTING GUIDELINES

In preparing this report, regard has been paid to

• Guidelines fo r the Content, Preparation and Presentation of Annual Reports fo r Statutory Authorities, incorporated in the Senate Hansard of 11 November

1982.

• Revised A nnual Report Requ irements fo r Departments provided by the Department of Prime Minister and Cabinet 18 March 1994.

• relevant provisions of AUSTEL’s enabling legislation.

Appendix 1 indicates where information required by the above guidelines is to be found in this report.

iii

CONTACT

The officer responsible for enquiries arising from this report is:

Fiona R ic a rd o P ublic A ffa irs AUSTEL PO B ox 7443, St K ild a R d MELBOURNE VIC 3004

Telephone: (0 3 ) 828 7442

F acsim ile: ( 0 3 ) 8 2 0 3021

iv

CONTENTS

ABOUT THIS REPORT_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ iii

A ________

RETIRING CHAIRMAN’S SUMMATION _ _ _ _ _ _ _ _ _ _ _ x

CHAPTER ONE - PROMOTING _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 2

CO M PETITIO N _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 3

CARRIER A FFA IR S_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 3

Access Agreements _________________________________________________ 3

Mediated/Facilitated Negotiations between Carriers_______________________4

Interconnection Model Study_________________________________________ 5

VICON____________________________________________________________ 6

Preselection and the Ballot___________________________________________ 6

SERVICE PROVIDERS_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 7

Issues Arising______________________________________________________ 7

Service Provider Industry Review _____________________________________ 8

PRICING AND DOMINANCE _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 8

SPAs and Flexiplans ________________________________________________ 8

‘Customer’ Definition __________________________ 8

Resale ____________________________________________________________ 9

Amendments to the Act _____________________________________________ 9

Mobiles Dominance________________________________________________ 10

Decision Making Framework________________________________________ 10

FINANCIAL REGULATORY REGIME _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 11

Accounting Separation _____________________________________________ 11

v

CHAPTER TWO - PROTECTING CONSUMERS _ _ _ _ _ 14

A ________

CONSUMER PRO TEC TIO N _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 15

Investigation of Consumer Complaints_________________________________15

Telecommunications Industry Ombudsman_____________________________15

Consumer Advisory Committee_______________________________________15

Rural and Remote Working Party ____________________________________ 15

PRICE CONTROL OPERATIONS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 16

Telstra’s 1993-94 Price Cap Compliance _______________________________ 16

Outcomes for 1992-93 ______________________________________________ 16

Public Payphone Charges____________________________________________ 16

QUALITY OF SERVICE _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 17

Telstra’s Quality of Service Reporting_________________________________ 17

Optus’s Quality of Service Reporting __________________________________18

Vodafone’s Quality of Service ________________________________________ 18

COT CASES _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 18

PRIVACY ___ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 19

Caller ID _______________ _________________________________________ 20

Privacy Issues in AUSTEL’s Technical Standards________________________ 20

CHAPTER THREE - NUMBERING _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 22

NUMBERING ADMINISTRATION POLICIES _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 23

Policy on Rights of Use of Num bers__________________________________ 23

Policy on Allocation of Numbers_____________________________________ 23

Policy on Charging for Num bers_____________________________________ 23

Policy on Numbering Information Requirements _______________________ 24

NUMBER PORTABILITY _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 24

Portability Study Group _________________________________________ 24

vi

IMPLEMENTATION OF NATIONAL NUMBERING PLAN _ _ _ _ _ _ _ _ _ _ _ _ _ _ 24 Geographic Numbers ______________________________________________ 24

Freephone N um bers_______________________________________________ 24

Policy on Change and Introduction of Numbers_________________________25

Public Information Campaign _______________________________________ 25

CHAPTER FOUR - LICENSING REGIME _ _ _ _ _ _ _ _ _ _ 28

A ________

LICENCES _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 29

FACILITIES _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 29

500 metre Rule____________________________________________________ 29

Double Ended Interconnected Services ________________________________30

Unauthorised Churn _______________________________________________ 30

Procedures for Releasing ESNs ______________________________________ 30

Cabling Licences __________________________________________________ 31

TELECOMMUNICATIONS NATIONAL C O D E _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 31 Draft Code _______________________________________________________ 31

Carrier Com pliance________________________________________________ 32

The Final Code____________________________________________________ 32

Carriers’ Powers to Enter Land_______________________________________ 32

SPECTRUM ALLOCATION FOR PACTS_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 32

Advice to M inister_________________________________________________ 32

CHAPTER FIVE - TECHNICAL STANDARDS AND REGULATION_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 34

STANDARDS DEVELO PM ENT _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 35

Review of Standards _______________________________________________ 35

Standards Advisory Committee ______________________________________ 35

GSM Standards Groups_____________________________________________ 35

M obiles__________________________________________________________ 36

AUSTEL's Wireless PCS Investigation _________________________________ 37

End to End Network Performance Standard ___________________________ 37

Network Boundary Investigation_____________________________________ 37

vii

INDUSTRY DEVELOPMENT ARRANGEM ENTS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 38 Administration of the Arrangements___________________________________ 38

AUSTEL’S TYPE APPROVALS PRO C ESS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 38

Process Review ____________________________________________________ 38

TEST HOUSE ACCREDITATION _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 38

INTERNATIONAL STANDARDS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 39

Australian Telecommunication Standardisation Committee (ATSC) _________ 39 Consumer Role in Standards Setting___________________________________ 39

Information Management System ____________________________________ 39

ITU-T, ETSI and T1 Activities_________________________________________ 40

Study of O pportunities______________________________________________40

APEC_____________________________________________________________40

INSPECTORATE _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 41

CHAPTER SIX - UNIVERSAL SERVICE OBLIGATION _ 4 2

AUSTEL’S R O LE _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 43

1 9 9 2 - 93 USD LEVY CLAIM CYCLE _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 43

1 9 9 3 - 94 USD LEVY CLAIM CYCLE _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 43

USD MODEL R EVIEW _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 44

CO M PLAINTS_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 44

CHAPTER SEVEN - AUSTEL THE ORGANISATION ___46

ESTABLISHMENT, OVERALL RESPONSIBILITIES, FUNCTIONS AND POWERS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 47

CONSULTATIVE ARRANGEMENTS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 47

A ________

viii

M EMBERSHIP _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 47

MANAGEMENT ISSUES _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 48

ADMINISTRATION _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 48

HUMAN RESOURCE MANAGEMENT _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 48

PUBLIC AFFAIRS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 49

ORGANISATIONAL STRUCTURE _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 50

APPENDIXES _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 51

APPENDIX ONE - COMPLIANCE IN D E X _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 52

APPENDIX TWO - COMPLAINTS 1 9 9 3 -9 4 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 54

APPENDIX THREE - DIRECTIONS TO CARRIERS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 60

APPENDIX FOUR - HUMAN RESOURCE MANAGEMENT _ _ _ _ _ _ _ _ _ _ _ _ _ 91

APPENDIX FIVE - FINANCIAL STATEMENTS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 100

APPENDIX SIX - STATE OFFICE CONTACT ADDRESSES _ _ _ _ _ _ _ _ _ _ _ _ 113

APPENDIX SEVEN - M E M B E R S H IP _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 114

APPENDIX EIGHT - LIST OF AUSTEL PUBLICATIONS 1 9 9 3 -9 4 _ _ _ _ _ _ _ 116

APPENDIX NINE - FIXED EQUIPMENT STANDARDS 1 9 9 3 -9 4 _ _ _ _ _ _ _ _ 118

APPENDIX TEN - ADMINISTRATIVE L A W _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 120

INDEX _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 125

A ________

ix

RETIRING CHAIRMAN’S SUMMATION

Over the first five years of its operations, AUSTEL has been called upon to fulfil many roles. AUSTEL's brief - to facilitate competition in the telecommunications industry has encompassed myriad subsets such as developing the frameworks of interconnection, administering the national land access code and developing a new national numbering scheme. AUSTEL’s achievements during my term as its initial Chairman are documented in past Annual Reports and elsewhere in this report. From my perspective, the outputs speak for themselves. It is for others to judge them in terms of success or failure against the objectives AUSTEL was given and the powers it had to achieve those objectives.

Members

I would like to pay tribute to AUSTEL’s members. AUSTEL has attracted members of a very high calibre since its establishment in 1989 and I am fortunate to have been associated with their depth and breadth of experience.

During the year Johanna Plante resigned to resume her career in the mainstream telecommunications industry, but I am confident that the newer members, Dr Bob Horton and Neil Tuckwell, in conjunction with the associate members will continue to advance the reform process.

Staff

Each year it has been my pleasure to report to the effect that AUSTEL’s staff have shown a professional commitment generally well above the norm. This year is no exception. That applies not only to those staff in front line high profile positions but also to those in lower profile but nevertheless essential support positions including those in AUSTEL’s State offices. The support of AUSTEL’s staff and their commitment to achieving the objectives set for AUSTEL has been significant in AUSTEL achieving the standing it has not only in Australia but internationally. I thank them most sincerely for their contribution and support over the past five years.

x

Contribution by others

AUSTEL could not have reached the point that it has, nor can it continue to move forward, without assistance from interested parties that have made such a valuable contribution to AUSTEL’s outcomes, particularly those who have served on AUSTEL’s advisory committees and their related working groups. They are too

numerous to mention by name. Once again, I thank them most sincerely for the contribution that they have made.

Finally, I would like to thank the representatives of the carriers and the other special interest groups who have contributed to AUSTEL’s outputs. They have not always agreed with AUSTEL’s outputs. But that is healthy and demonstrates that AUSTEL’s decisions as an industry specific regulator are not about favouring one player in the industry over another. AUSTEL’s decisions are about ensuring that the end user, the Australian public, reaps the benefits that flow not only from competition but also from the socio-economic and technical drivers embodied in the framework

administered by AUSTEL.

The Way Forward

The Minister’s 31 May 1994 announcement that his review of post-1997 telecommunications policy and regulation will commence in the new financial year underscores the dynamic nature of the telecommunications industry and the need for the structural and regulatory framework to keep pace with the continual change

that characterises the industry.

The Minister’s review will address the issue of whether there is a continuing need for an industry specific regulator or whether the institutional arrangements outlined in the Hilmer Report might, to the extent that regulatory intervention is required, provide a more appropriate platform.

The answer perhaps lies in convergence. In Australia there has been a somewhat piecemeal approach to regulatory reform of the various sectors that are now converging. The terms of reference for the Minister’s review are broad enough to look at the total picture - to look at communications, rather than the various segments of broadcasting, telecommunications and the several subsets of those

including management of the radio spectrum. Australia is at the crossroads and has to think very carefully how it might maximise the benefits to be derived from

xi

convergence. Governments cannot create optimal industry structures but they may impede their evolution. What is required is a clear statement of the socio-economic and technical goals and a plan for achieving those goals. It would be presumptuous for me to foretell those goals. Suffice it for me to say that based on past experience of the telecommunications reform process I am confident that the consultative process envisaged by the Ministerial review will produce the right result.

Robin Davey Chairman 21 June 1989 - 3 June 1994

xii

to ri CHAPTER ONE

PROM OTING COMPETITION

AUSTEL is actively involved in the prom otion of com petition in the Australian telecom m unications industry. Industry behaviour is m onitored to ensure fair and efficient m arket conduct, arrangem ents are in place to assist com panies wishing to enter the market, and carrier accounting system s have been specified to enable AUSTEL to m onitor carrier behaviour.

A U STEL’s com petition objective is to prom ote the developm ent of a com petitive and equitable environm ent so that the benefits of com petition are realised by consum ers.

CARRIER AFFAIRS

A ccess Agreem ents

Access agreements form the contractual bases for carriers to gain access to each other’s networks and services. The Telecommunications Act

1991 (‘the Act’) requires AUSTEL to keep a register of all such access agreements. Each agreement consists of a public part, which is freely available, and a confidential part, which contains commercially sensitive

information.

R eg istra tio n s

In the 1993-94 financial year AUSTEL registered the agreements set out in Table 1.1

The effect of registration of these agreements is to exempt the parties from that part of the Trade Practices Act 1974 which deals with anti­ competitive behaviour.

C onfidentiality

During the reporting period AUSTEL considered various detailed ‘confidentiality submissions’. This resulted in only parts of the agreements noted in Table 1.2 being placed on the public register.

As with previous AUSTEL decisions on confidentiality, references relating to inter-carrier charging arrangements, costing methodologies, carrier liability provisions and information on network security were omitted from the public register.

TABLE 1.1

Date Registered Name o f Agreem ent

• 27 August 19 9 3 Telstra/O ptus Special Services Variation A greem ent

• 1 S eptem ber 19 9 3 Telstra/Vodafone Interim Access A greem ent

• 27 Septem ber 19 9 3 Telstra/Vodafone Access Agreem ent

• 1 D ecem ber 19 9 3 Optus/Vodafone Access A greem ent

• 22 D ecem ber 1993 Telstra/Optus Preselection Variation Agreem ent

• 10 M arch 1 9 9 4 Optus/Vodafone New Services Variation A greem ent

Telstra/Optus M obileSat Services Variation A greem ent 30 June 19 9 4

D ereg istra tio n

During the year AUSTEL deregistered two agreements on its own initiative. (See Table 1.3) Under the legislative provisions of the Act, deregistration of an agreement can be initiated by either of the parties to the agreement or by AUSTEL.

M ediated/Facilitated N egotiations b etw een Carriers

At the request of carriers, AUSTEL participated in the negotiations of carrier arrangements in relation to:

• ‘13’ services

• AMPS international charges

• Telstra/Optus subsequent charges.

13’ S ervices

Optus advised AUSTEL that it was unable to reach agreement with Telstra on the commercial arrangements associated with the interconnection of its proposed ‘13’ service and sought AUSTEL arbitration of the issue.

After consideration of the positions put by both Telstra and Optus, AUSTEL made an interim determination to apply pending the development of a new interconnection model.

AMPS In tern a tio n a l C h arges

In relation to AMPS international services, the carriers sought AUSTEL’s assistance in March 1994 in

TABLE 1.2

Date Registered Nam e o f A greem ent

• 3 August 1993 Telstra/O ptus Main Access Agreem ent

• 3 0 August 19 9 3 Telstra/O ptus G SM Variation Agreem ent

• 24 January 1994 Telstra/O ptus Preselection Variation Agreem ent

• 2 7 June 1994 O ptus/Vodafone Access A greem ent

TABLE 1.3

Date Registered Name o f Agreem ent

• 2 3 February 19 9 4 AO TC/AUSSAT - AUSSAT New Zealand Incom ing Traffic Access A greem ent (Agreem ent was inoperative)

• 5 April 1 9 9 4 Telstra/O ptus S upplem entary Access Agreem ent (Agreem ent rendered superfluous due to legislative changes - see AUSTEL 1 9 9 2 -9 3 Annual Report)

establishing the charges payable by Optus for AMPS international interconnection. AUSTEL’s analysis was presented to both carriers and formed the basis of commercial

negotiation between the carriers which resulted in agreed AMPS international charges.

S u bsequ en t C harges

During the reporting period Telstra and Optus commercially negotiated various interconnection and access charges under the subsequent charges

framework contained in the Tele co m m u n ic at ions (Ihtercon nectio n and Related Charging Principles) Determination No. 1 o f 1991. These (subsequent) charges are to replace the initial charges which were set by government.

The carriers began negotiations in late 1993 and throughout the period to March 1994 sought informal views from AUSTEL on various matters to

assist them. With progress becoming increasingly difficult, the carriers asked AUSTEL to take on the formal role of mediator. Through a sustained period

of activity and with the assistance of a professional mediator AUSTEL was able to establish a framework and process within which the carriers were able to pursue commercial negotiation. While the carriers have advised AUSTEL of a successful outcome to their commercial

negotiations, as at 30 June 1994 AUSTEL had not received formal notice of the outcome in the form of an agreement for registration.

In tercon nection Model Study

AUSTEL initiated an interconnection model study as a consequence of its ‘13’ arbitration. The purpose of the

study is to develop an interconnection model to cater for the more advanced services (of which the ‘13’ service is an example) that are being introduced. A draft model has been

developed following consultation with Professor Gerrand of the Collaborative Information Technology Research Institute, Telstra, Optus and Vodafone, and disseminated to industry participants for comment. AUSTEL will finalise the model following consideration of submissions received.

VICON

In October 1993, AUSTEL conducted an investigation into ‘VICON’, a voice messaging facility developed by Telstra. The investigation was in response to a complaint from Optus in August 1993 that Telstra had failed to provide it with sufficient advance notification of, and technical information relating to, the VICON facility and that Telstra had gained a competitive advantage in the provision of analogue mobile services by virtue of its sole right to install and operate an AMPS network.

AUSTEL found that, while there was some substance to Optus’s allegation, a technical breach had been committed due to inadequate notification procedures, rather than an anti-competitive intent on the part of Telstra. An appropriate framework for notification and information sharing between the carriers has subsequently

been developed in conjunction with AUSTEL’s investigation into mobiles dominance.

The first ballot for consumer preselection of carriers for long­ distance telephone services was conducted in Canberra in July-August

1993, and the process has continued around Australia during the year. At 30 June 1994, ballots had been conducted in Canberra, Sydney, Melbourne, Geelong, the Mornington Peninsula, South East Queensland, Penrith, Perth and Adelaide.

A major element of the preselection process is the Public Education Campaign (PEC), which aims to create

awareness and understanding of preselection and its implications. AUSTEL set objectives of achieving at

least 85 per cent awareness in the adult population that telephone customers were being asked to choose a telephone company for their long­ distance services and at least 80 per cent had comprehension of the ballot process. These objectives have largely been achieved.

P ublic E du cation C am paign

Preselection and the Ballot

C ost

Under the agreement between Optus, Telstra and AUSTEL, the carriers have agreed to share equally the costs of

running the ballot including the PEC. These costs are estimated to be about $30 million over a four-year period.

SERVICE PROVIDERS

Issues Arising

Last year saw continuing growth in the market for resale of telecommunications services.

AUSTEL received numerous enquiries relating to its Service Providers’ Class Licence (for the supply within Australia of telecommunications

services by non-carriers) and the International Service Providers’ Class Licence (for the supply of international telecommunications services by non­ carriers). Most of the enquiries were from either existing resellers or potential market entrants.

N a tio n a l C onnect

In September 1993, following a complaint from an industry participant, AUSTEL instigated a review of service provider connection to the Telstra network. The review focused on the tariff aspects of Telstra’s ISDN-based National Connect

service, a product which was developed for switch-based resellers.

AUSTEL’s underlying concern was whether the National Connect tariff was structured to facilitate competition

in the telecommunications services sector. AUSTEL’s subsequent view was that the tariff structure set up unacceptable barriers to entry including:

• charges for establishment, rental and access and egress;

• charges for unsuccessful calls;

• the requirement that economy rate traffic not exceed 15 per cent of total traffic;

• the requirement that no one site account for more than 50 per cent of a service provider’s total annual access or egress call minutes.

In its preliminary report, AUSTEL found that Telstra should take action to remove the identified shortcomings in the tariff and explore the needs of

the service provider market with a view to providing services which better meet the needs of the market.

0055 In tern a tio n a l S ervices

Tariffing arrangements for international access to 0055 information services were completed in early February 1994. Contractual details in addition to basic tariff terms and conditions remain to be negotiated between Telstra and the

relevant service providers. AUSTEL will continue to monitor these negotiations.

A ccess to In form ation

Previous AUSTEL Annual Reports have flagged industry concerns about carriers’ exclusive access to information which may adversely affect service providers.

A case which emerged during the year was Telstra’s employment of market researchers who were given access to call-charge recording data to conduct surveys relevant to trial services. Given Telstra’s position as network provider and service provider in this market, AUSTEL is giving consideration to the possibility that Telstra is gaining an unfair competitive advantage by virtue of its ability to access information that may not be available to its competitors. This matter is still under consideration.

Service Provider Industry Review

In June 1994, AUSTEL began a comprehensive review of the service provider industry in the context of the Government’s aims of promoting competition in the telecommunications industry. This review was initiated in response to a Ministerial request to monitor service provider competition, and concerns raised by industry about the impediments to developing a competitive service provider industry.

PRICING AND DOMINANCE

SPAs and Flexiplans

During 1993-94, increasing concerns emerged over the legality of certain innovative pricing packages offered by Telstra such as Flexiplans and Strategic Partnership Agreements (SPAs).

Under the original legislation the dominant carrier was prohibited from engaging in discriminatory pricing, the only exception being where such discrimination was cost justified.

Optus questioned whether Telstra’s SPAs and Flexiplans were cost justified and challenged Telstra's offerings in the courts. These legal proceedings were still in progress as at 30 June.

‘Custom er’ D efinition

During the year AUSTEL continued to receive queries from the State and Federal Governments relating to AUSTEL’s ‘customer’ definition and its relationship to carrier ‘whole of government’ arrangements, i.e. single purchasing arrangements providing telecommunications services to government departments and authorities. The issue was raised in the context of Telstra’s compliance with dominant carrier charging provisions under the Act.

Telstra has developed resale agreements for ‘whole of government’

packages and this is consistent with the objects of the Act. We have reaffirmed this view to industry and ‘whole of government’ customers.

Resale

As a result of the many issues raised by industry regarding a range of arrangements being implemented in the marketplace, the importance of having a clear understanding of what constitutes resale became apparent. One of the major aims of the Act is to provide for resale of telecommunications services provided by the carriers. The Act, however, does not define resale.

Telstra’s industry association reseller agreements are an example of where the issue of resale arose. These reseller agreements enable industry associations to buy telecommunications services in bulk and pass on discounts for these volume-related services to their members. Since these resellers appear to be acting primarily for the benefit

of members rather than for commercial profit there is scope for associations to offer the service at a price advantage over other resellers.

Parts of the industry have expressed concern that these arrangements allowed Telstra to charge end-users prices which are below its filed tariff

and to engage in resale on the basis of improper commercial arrangements.

AUSTEL staff considered the issue and reached a preliminary view that Telstra’s resale arrangements with industry associations did not breach the regulatory framework. However, in view of the importance of this issue, AUSTEL is currently seeking legal advice on whether these association reseller agreements fully comply with the Act.

A m endm ents to the Act

While the Act expressly prohibited (with the exceptions noted above) price discrimination between the customers of a dominant carrier, the Government’s policy intention was to allow innovative pricing packages developed by the carriers. Consequently the Government decided to amend the Act to clarify its intentions.

The amending legislation, backdated to 15 March 1994, has seen a widening of the allowable price discrimination rules for the dominant

carrier so that flexible pricing packages may be offered by telecommunications carriers, subject to their meeting specified conditions. The amendments also give AUSTEL power to disallow anti-competitive dominant carrier tariffs.

M obiles D om in an ce

During the reporting period, AUSTEL undertook investigations into whether Telstra was in a position to dominate the market for public mobile telecommunications services (PMTS). This followed a complaint by Optus that Telstra was in breach of the Act by offering discriminatory tariffs while being in a position to dominate the market.

AUSTEL’s initial investigation concluded that Telstra was in a position to dominate the PMTS market. On 14 July 1993 AUSTEL

issued a direction to Telstra, '... in relation to the supply of public mobile telecommunications services ... to comply with the terms of sections 183 and 197 of the Act’. The direction also indicated that AUSTEL would review its decision to determine whether, and under what circumstances, AUSTEL would withdraw its direction.

On 2 March 1994, AUSTEL released a report which reviewed the 1993 direction. The report titled ‘Mobiles Dominance - Review of AUSTEL’s Direction of 14 July 1993’ proposed a number of safeguards designed to ensure that any discretionary power derived by Telstra from ownership of the AMPS network is constrained. The safeguards relate to interconnection, accounting separation, AMPS network developments and customer service and customer information.

Procedures have since been put in place to ensure that Telstra complies with these safeguards. As a result, in the mobiles market, Telstra is no longer bound by those provisions of the Act which relate to dominant carrier charges.

D ecision Making Fram ework

As a result of the recent amendments to the Act, together with an associated Ministerial Direction to AUSTEL, AUSTEL is required to develop a

Decision Making Framework (DMF) to administer the amendments and assist it to form an opinion on whether tariffs offered by the dominant carrier are likely to have an anti-competitive effect.

The aim of the amended legislation and the DMF is to foster an environment whereby the benefits of competition are passed on to all consumers, and the dominant carrier is prohibited from using its market power to hinder the development of commercially sustainable competition.

Contents o f th e DMF

In developing the DMF, AUSTEL is required to take into account factors such as the existence of predatory pricing and the nature of barriers to entry in the market and trigger circumstances such as where services and tariffs are bundled. The Ministerial Direction contains a

complete listing of matters and circumstances to be considered by AUSTEL.

The DMF must also cover a broad range of issues, including market dominance and market definition, commercially sustainable competition,

pricing stmctures and price discrimination, and cost based test standards and methodology.

The P ro c e ss

In developing the DMF, AUSTEL has engaged a number of local and international consultants, with areas of expertise collectively covering

economic theory, pricing theory, trade practices law, administrative law, costing methodologies and telecommunications pricing and technology.

Recognising the importance of wide consultation in the development of the DMF, AUSTEL has consulted industry stakeholders, including carriers,

resellers, large users, consumer representatives and other governmental agencies.

AUSTEL held its first industry consultation workshop on 9 May 1994. A second meeting was then held with industry representatives on 20 June

1994 and further public meetings were scheduled for July and August.

It is envisaged that the DMF will be completed by late 1994.

FINANCIAL REGULATORY REGIME

A ccounting Separation

Accounting separation is one of a number of important regulatory tools available to AUSTEL to assist it in the promotion of competition and fair and

efficient conduct in the supply of telecommunications services.

In addition, AUSTEL’s accounting separation arrangements provide a stable financial information base of the carriers’ activities which is used by AUSTEL in meeting a number of other

regulatory responsibilities.

The primary tool of accounting separation is the Chart of Accounts (COA) and Cost Allocation Manual (CAM). These documents set out the

rules of accounting separation and require the carriers to report to AUSTEL on a quarterly basis.

AUSTEL foreshadowed in last year’s Annual Report that modifications to the COA and CAM would be required. A final decision on changes to the

COA/CAM will be made on completion of a review of accounting separation later in 1994.

In addition to meeting its primary- statutory objectives, the COA/CAM was used during the year on the following matters:

• the establishment of a framework for monitoring the efficiency of Telstra’s payphones business following the increase in payphones charges approved during the year;

• provision of financial data to assist in the mediation of appropriate inter-carrier charges;

• provision of financial data to assist in the consideration of Telstra’s dominance in the PMTS market and ongoing monitoring of that market.

fcJI CHAPTER TWO

PROTECTING CON SUM ERS

One of AU STEL’s prim ary functions is to protect and prom ote the interests of consum ers. This role extends to protecting consum ers from the unfair practices of the carriers and other persons in the

supply of telecom m unications services and equipm ent. AUSTEL is putting in place procedures fo r controlling and m onitoring all aspects of the telecom m unications industry which w ill allow all custom ers to benefit from the com petitive arrangem ents.

O

f c p f l

CONSUMER PROTECTION

Investigation o f Consum er Com plaints

AUSTEL continued to share with the Commonwealth Ombudsman’s office and the Trade Practices Commission the role of protecting consumers by investigating and resolving consumer

complaints.

AUSTEL actioned some 655 consumer protection complaints, 158 of which were referred to other organisations, chiefly Telstra’s Customer Help Centre

and the Telecommunications Industry Ombudsman. The remaining 497 were investigated by AUSTEL. Further details are set out in Appendix 2.

T elecom m unications Industry O m budsm an

On 1 December 1993, the Telecommunications Industry Ombudsman (TIO) commenced operations. In time, the TIO will take

up most of the Commonwealth Ombudsman’s current role in handling telecommunications complaints and disputes as well as many of the

consumer related complaints made to AUSTEL.

Consum er A dvisory Com m ittee

AUSTEL’s Consumer Advisory Committee (CAC), which has been in

operation since March 1990, plays an important role in AUSTEL on the issues and concerns of most interest to consumers. Committee members and observers are drawn from a wide range of government, business and community organisations, bringing a range of viewpoints to discussions.

Major issues canvassed by the CAC during 1993-94 include preselection and the carrier ballot process, quality

of service monitoring, delivery and interpretation of the universal service obligation, and pricing/tariff issues.

The Committee also considered the findings of AUSTEL reports such as the COT Cases Report and Telecommunications Privacy.

Rural and Rem ote W orking Party

Another AUSTEL initiative was the formation of the Rural and Remote Working Party, essentially as a sub­ committee of the CAC. Support for

the establishment of this group strengthened as a result of AUSTEL’s 1992 investigation into The Extent o f Unmet Needs in Rural and Remote Areas o f Australia fo r the Standard

Telephone Service. The working group has provided advice on issues of current and emerging impact on mral and remote consumers.

O

^ p f l

PRICE CONTROL OPERATIONS

Telstra satisfactorily complied with the terms of the price control arrangements and the price cap has operated to ensure that the efficiency gains made by Telstra have been shared by consumers. Detailed analysis is contained in the 399 Report.

Telstra's 1993-94 Price Cap C om pliance

At the conclusion of each price control year, Telstra is obliged to provide AUSTEL with details concerning its compliance with the price control requirements. Final figures are only available following the auditing of Telstra’s accounts. However, according to preliminary data provided to AUSTEL on Telstra’s price movements for the 1993-94 period, Telstra appears to have complied with

the arrangements.

O utcom es for 1992-93

In 1992-93, the relevant CPI outcome for the purposes of the price cap (which uses the previous period’s CPI) was 1.9%, which meant that Telstra was subject to an overall price cap of -3.6%. Accordingly, AUSTEL determined that Telstra complied with its obligations to reduce prices under the price control arrangements during

1992-93.

Public P ayphone Charges

On 20 December 1993, in accordance with the 1992 Ministerial determination on price control arrangements, the then Minister for Transport and Communications sought AUSTEL advice as to whether Telstra’s proposal to raise its public payphone charges from 30 to 40 cents was in the public interest.

AUSTEL advised the Minister on 21 January 1994 that the proposal was in the public interest. This view was based on the rationale that Telstra had

undertaken or was in the process of undertaking all reasonable steps to provide an efficient public payphone service of acceptable quality Australia­ wide. Further, AUSTEL believed that, as public payphone charges had not risen since 1986, sustainability of quality improvements since that time could be compromised if a rate increase was disallowed.

During AUSTEL’s consideration, Telstra provided supplementary proposals to cushion the effect of a rate increase on those perceived to be particularly disadvantaged - mainly low income people without a home phone.

On 12 April 1994, following consideration of AUSTEL’s advice and Telstra’s supplementary affordability proposals, the Minister consented to

O

I p *

the increase in Telstra's public payphone charges from 30 to 40 cents effective from 1 September 1994, providing that Telstra put in place an assistance package to cushion the one-off impact of the rise. The Minister also agreed that, where necessary, Telstra provide additional on-going performance measurement for its public payphones to assist

AUSTEL’s performance monitoring.

QUALITY OF SERVICE

Details of the carriers’ Quality of Service reporting are also contained in the 399 Report.

Telstra’s Quality o f Service Reporting

Telstra currently reports to AUSTEL on a range of quality of service indicators including service connections, fault clearance and complaints. Such reporting enables AUSTEL to monitor changes in quality of service with the ultimate aim of ensuring that as competition develops, service quality is not only maintained, but improves over time.

In 1993-94, AUSTEL initiated a review of Telstra’s quality of service reporting regime. This review will ensure that rapid changes both in the industry and in consumer expectation are being adequately reflected in the data collected. New methodology used to

report performance will also ensure that information flow between Telstra and AUSTEL, and from AUSTEL to the Government and consumer bodies is relevant, succinct and as timely as possible.

A d d itio n a l In d ic a to rs

Proposed changes have been discussed with AUSTEL’s Consumer Advisory Committee and User Groups and are being progressively

implemented. They include indicators for billing and charging accuracy (currently being progressed through a separate working group), a new Emergency Services section, and

additional indicators for payphones.

The new reporting format retains statistical tables of national performance, and combines country/ metropolitan and residential/business

breakdowns with ‘exception’ reporting for regions whose performance is outside an agreed range. Any emerging trends likely to affect the

long-term mean performance of any particular indicator will also be reported through the exception mechanism.

P erform an ce S ta n d a rd s (B enchm arking)

AUSTEL has been analysing longer- term trends in quality of service provided by Telstra as indicated in the

three years of data collected to date and provided to AUSTEL. Consultations with the Australian Bureau of Statistics resulted in the compilation of statistically valid portrayals of Telstra’s past performance that will be the basis of developing indicative performance standards against which to evaluate Telstra’s current levels of quality of service. This will be provided in the 399 Report.

O ptus’s Q uality o f Service R eporting

Progress was made during 1993-94 in the measurement of Optus’s quality of service. The first report received by AUSTEL was for the June quarter 1993 and information has been provided against an expanding range of indicators.

Direct comparability with Telstra’s quality of service is difficult as Optus and Telstra provide a different range of services. With limited exceptions, it is largely Telstra that supplies the standard telephone service which provides a customer’s connection to the local exchange and access to local calls. It is also largely Telstra that provides the technical fault repair service for both customer equipment and network faults.

To date Optus has been providing quality of service information on:

• Customer Service (Wireline) • National Network Operations • International Network Operations • Service Provision(Network

Rollout).

V odafone’s Quality o f Service

Vodafone is licensed to provide public mobile telecommunications services. Telstra, Optus and Vodafone will be required to report on their respective GSM services once their customer bases are established. In the meantime, AUSTEL will be carefully monitoring the rollout of each carrier’s GSM network.

COT CASES

AUSTEL’s initial involvement with the issue of the Casualties of Telecom (COT) was detailed in last year’s Annual Report. Complainants had been negotiating with Telstra over a number of years attempting to have

problems with their telephone services rectified, and in some cases claiming compensation for business losses.

Although AUSTEL attempted to act as a facilitator and an ‘honest broker’ between the parties, it was evident

that an extremely poor relationship had developed between Telstra and the complainants. This made

« Ε *

AUSTEL’s task more difficult and placed additional demands on AUSTEL’s resources.

On 12 August 1993, AUSTEL issued Directions to Telstra under Sections 46 and 400 of the Telecommunications Act 1991 to provide relevant documents, and to institute a specified regime of testing and monitoring appropriate to the services of eleven businesses which had complained of

ongoing service difficulties. AUSTEL also held two public meetings in Brisbane, on 23 August and 13 September 1993, to gauge the nature and extent of problems experienced by telephone customers in the area of the Fortitude Valley Exchange.

AUSTEL also assembled a special project team to investigate the allegations made by the COTs, and to consider technical aspects of the case. It focused investigations on nine complainants whose cases were representative of the range of problems and issues confronted by the COTs. They included metropolitan, metropolitan fringe and country services, different types of exchanges

and a range of difficulties experienced by various complainants.

AUSTEL made 41 recommendations as a result of the COT investigation, all of which were accepted by Telstra.

These were complementary' to a large number of improvements proposed in

separate reports by Coopers & Lybrand and Bell Canada International, commissioned by Telstra. In general terms, AUSTEL’s recommendations covered areas such as Telstra’s acceleration of network modernisation, a range of issues concerning fault recording, testing, escalation, arbitration and customer relations, and particular recommendations on voice monitoring.

AUSTEL submitted its findings and recommendations to the Minister for Communications and the Arts on 13 April 1994 and published them in a

report entitled The COT Cases.

Telstra is required to report quarterly to AUSTEL on progress until all recommendations have been implemented, and AUSTEL will

publish bulletins on that progress.

PRIVACY

Over the past year AUSTEL received a steady stream of complaints and enquiries on a range of privacy related issues including telemarketing, silent

lines, the recording and monitoring of telephone conversations, reverse directories and nuisance calls. Complaints of this type have been referred to the office of Telecommunications Industry

Ombudsman since its establishment in December 1993-

Caller ID

Among the complaints received has been the possible introduction by Telstra of Caller ID. This enables the receiver of a telephone call to identify

the number of the service that is originating the call.

Telstra is currently conducting a three- month trial of Caller ID in the northern New South Wales town of

Wauchope. AUSTEL is monitoring this trial as a member of the National Caller ID Consultative Committee.

Privacy Issues in AUSTEL’s T ech n ical Standards

AUSTEL is currently conducting an investigation into privacy issues affected by AUSTEL's Technical Standard 002, which requires that customer equipment designed for

recording or monitoring telephone communications shall emit pip tones or intrusion tones.

A

IBS· CHAPTER THREE

NUMBERING

The functions of AUSTEL include m anaging the num bering of telecom m unications services in Australia.

|ggl NUMBERING ADMINISTRATION POLICIES

Over the past twelve months, AUSTEL has continued to develop the policies needed to support the implementation

and administration of the National Numbering Plan, as required by the Act. We have relied on extensive advice and assistance from the

Numbering Advisory Committee in developing the policies.

Policy o n Rights o f Use o f Num bers

AUSTEL has become increasingly aware that customers assume that they possess a range of rights over a number once it has been allocated to

them. Some of the terms and conditions of service specified by carriers define the scope of some of these rights, but there has been no clear and uniform statement of what

rights follow from the allocation of a number.

AUSTEL is developing a policy which will define the scope of rights over numbers possessed, on the one hand, by carriers and service providers

which receive an allocation from AUSTEL and, on the other hand, the rights possessed by customers of these carriers and service providers.

The policy on rights of use of numbers is expected to be issued in the second half of 1994.

Policy o n A llocation o f Num bers

Our policy on allocation of numbers was released in April 1993 as part of the National Numbering Plan. This

policy describes the principles and procedures AUSTEL uses in assessing requests from carriers and service providers for allocation of numbers,

together with principles governing the allocation of numbers by carriers and service providers to their customers.

Refinements to the policy are expected to be settled in the second half of 1994 and will form the basis of all allocations of geographic service numbers from that point.

Policy o n Charging for Numbers

Because certain telephone numbers, such as those containing an attractive or memorable sequence of digits may be seen as more desirable than other

numbers, AUSTEL has developed a policy on allocation and charging for such numbers. The policy uses a market-based mechanism for the

allocation of such ‘premium’ numbers by allowing carriers and service providers to charge additional fees to customers seeking these numbers when certain conditions are met.

8E51 P olicy o n N um bering Inform ation R equirem ents

In March 1994, AUSTEL introduced a policy on numbering information requirements. The policy provides for all carriers and service providers which have received an allocation of numbers from AUSTEL to supply details regarding their usage of the numbers on a regular basis. This information will allow us to develop a history of number usage, and provide a context within which particular requests for allocation of numbers can be considered.

NUMBER PORTABILITY

Number portability is the ability for a customer using a particular telecommunications service supplied by one telephone company to transfer to a different telephone company without a change in number. Number portability produces important consumer and competitive outcomes.

Portability Study Group

In January 1994, AUSTEL established a Portability Study Group which comprises representatives from the carriers, service providers, industry bodies and state/territory governments. This group will initially examine the technical and economic feasibility of introducing number portability by reference to freephone

services. The Group will then examine the practical steps required to implement freephone portability, including standards, industry agreement and AUSTEL policies.

Eventually the study group will recommend an overall framework for the introduction of portability for other numbers, and recommend to AUSTEL an appropriate policy on number portability.

IMPLEMENTATION OF NATIONAL NUMBERING PLAN

G eographic Num bers

Commencing in the second half 1994, and continuing through to 1999, Australia’s new Telephone Numbering Plan will be implemented. Under the

Plan, all geographic telephone numbers will eventually become eight digits in length, together with a two­ digit area code.

The first changes occur in July 1994 in the Sydney suburb of Mona Vale. During 1994-95 changes will also occur in Melbourne and the Gold Coast. The changes will involve the addition of an extra one or two digits to the front of existing numbers.

F reep hon e Numbers

The first of several changes to special services numbers designated in the

€ »

lB a$l National Numbering Plan occurred in September 1993 when Telstra introduced the 1800 prefix for its existing freephone service. 1800 will eventually replace 008 as the prefix for freephone services.

Consistent with the provisions for number changes in the National Numbering Plan, customers have been given the option of using either the 008 or 1800 prefix until September

1995 to assist them in the changeover.

Policy o n Change and Introduction o f Num bers

In December 1993, AUSTEL adopted a policy under the National Numbering Plan which requires carriers and

service providers to provide us with advance information about changes to numbers and introduction of new numbers.

These requirements, developed in consultation with the Numbering Advisory Committee, will assist us in administering the National Numbering Plan by providing that a carrier or service provider must give notice of a

proposal to implement a number change which affects customers generally. Similarly, notice must be given of the intention to introduce a

new number in the special services number range.

These requirements will also assist AUSTEL in responding to consumer enquiries when number changes occur

and new numbers are introduced.

Public Inform ation Campaign

With the implementation of the new telephone number plan over the next five years, the carriers and the industry saw a need for a general public

information campaign to raise the level of awareness of all telephone customers of the changes. Extensive business and community consultation

has taken place to ensure that the changes occur as smoothly as possible.

The advertising campaign is funded by the fixed network carriers, Optus and Telstra, and promotes general

awareness of the numbering changes as well as specific customer notification twelve months prior to their number changing.

The general campaign was launched in Sydney in May 1994, and Melbourne and Gold Coast subscribers have been notified of specific changes

set to occur late in the next financial year.

Im pact o f N u m ber C' anges on B usiness System s

With the first change to eight digit numbers occurring in Mona Vale

I f j g f l

New South Wales on 25 July 1994, it was important to ensure that customers with business systems such as PABXs and Commander™ systems were informed that they may need to have their systems reprogrammed to be able to call eight digit numbers.

Planning is advanced on a print media advertising campaign which will inform businesses that they should contact their system supplier, vendor or maintenance company for advice about reprogramming. AUSTEL is also contacting approximately 900 system suppliers, vendors and maintenance companies with information on geographic and special services number changes, and on the number changes which have specific implications for call barring.

CHAPTER FOUR

LICENSING REGIME

AUSTEL has responsibility fo r reporting on carriers’ compliance with their licence conditions, together with issuing class licences and enforcing the conditions of those licences. AUSTEL is also responsible fo r the adm inistration of the National Land Access Code and fo r developing recom m endations on m atters such as the allocation of spectrum fo r Public Access Cordless Telecom m unications Services (PA C TS). This Chapter deals with

recent changes in the approach to adm inistration of such issues. Detailed inform ation on com pliance is contained in the 399 Report.

LICENCES

Under AUSTEL’s class licence system, a person may provide eligible telecommunications services without having to apply for an individual licence. AUSTEL places the onus on individuals to comply with the conditions imposed by the class licences. This provides flexibility and minimises the need for undue

regulation.

To date, three class licences have been developed by AUSTEL, namely the public access cordless telecommunications services (PACTS) class licence, the service providers’ class licence (SPCL), and the

international service providers’ class licence (1SPCL).

FACILITIES

500 m etre Rule

Successful implementation of the 500 metre rule authorisations has continued in 1993-94. Under this mle persons are allowed to install cabling

between two properties that are not more than 500 metres apart upon receipt of an AUSTEL authorisation. During the year there were 28 queries

requesting general information on the 500 metre mle. The conditions relating to the 500 metre mle and its application would appear to be well known in the community and

telecommunications cabling industry because in the same period 112 cabling authorisations were approved by AUSTEL. Typical applicants were tertiary education institutions, hospitals and large private corporations.

500 M etre R ule S u rvey

In September 1993 AUSTEL undertook a survey of persons who were authorised during the year to install

line links under AUSTEL’s 500 metre mle. The primary objective of the survey was to measure the

effectiveness of the 500 metre mle in providing a competitive cabling alternative to a service traditionally provided by Telstra and to determine the extent to which benefits have been derived by consumers.

Overall, the survey found that AUSTEL's 500 metre mle authorisations have resulted in

significant cost savings and have contributed to increased timeliness and flexibility in the installation of cabling. Ninety-eight per cent of

respondents indicated that in the future they would choose the 500 metre mle option again.

AUSTEL is continuing to administer and monitor the successful use of the 500 metre mle.

D ouble Ended In terconnected Services

In September 1993 AUSTEL began an investigation into whether the provision of double ended interconnected services (DEIS) meets the criterion of being in the public interest as required by AUSTEL’s International Service Providers’ Class Licence (ISPCL). A DEIS telecommunications service provided between Australia and a place overseas is one which enters the public network in one country and exits via the public network of the other country.

As a result of the investigation, AUSTEL concluded a misuse of offshore market power or regulatory status may lead to a substantial lessening of competition in Australia where:

• a service provider receives terms and conditions of access to a foreign carrier that are more beneficial than those offered to Australian carriers ;

• Australian carriers do not have an equal opportunity to negotiate such terms and conditions.

While AUSTEL found that the provisions of the ISPCL are adequate to deal with initial concerns, the Guide to the ISPCL has been amended

to clarify under what circumstances AUSTEL would be concerned that the supply of DEIS was not in the public interest.

U nauthorised Churn

An important issue which emerged during the year was that of unauthorised mobile ‘churning’ whereby AMPS customers of one mobile network carrier are switched to the other carrier without authorisation.

Complaints received so far have been resolved by returning the churned customers to their original carrier and arranging reimbursement for costs incurred. AUSTEL is working with the carriers to ensure that adequate safeguards are put in place to prevent such problems recurring.

Procedures for Releasing ESNs

Procedures are also being developed to ensure a smooth transition between carriers in the release of electronic serial numbers (ESNs). Some consumers have experienced difficulties in connecting their phones to the AMPS Network, allegedly because either Telecom MobileNet or Optus has refused to release the handset ESN. Investigations by AUSTEL and the Telecommunications Industry Ombudsman led to the eventual resolution of these complaints and connection to the desired network. However, the

complaints have served to highlight the need to develop procedures for releasing ESNs to ensure that they are not unfair to consumers.

Cabling Licences

In February 1994, an AUSTEL report to the Minister recommended changes to cabling regulation. The new arrangements resulting from the report are proposed to occur in two phases.

In the initial phase there will be four categories of licence i.e. General Premises Licence, Domestic Premises Licence, a Restricted Cabling Licence and an industry specific ‘Lift Mechanics’ Cabling Licence. A

national competency standard with associated approved training modules will be used as the basis for issuing licences together with the outsourcing

of AUSTEL’s examination and skill assessment when these standards become available. AUSTEL will support the Telecommunications Industry Training Advisory' Board in developing these competency standards. In the interim, AUSTEL has established a Qualifications and Training Advisory Committee (QTAC) with representation by AUSTEL, the

carriers, public and private training organisations, the cabling industry and unions, to evaluate and advise AUSTEL on cabling licensing and

training issues. External training providers will be assessed by the

QTAC and recommendations made to AUSTEL on those found suitable to assess the knowledge and experience of cablers.

From 1 July 1994, new and renewed cabling licences will be valid for five years. A plastic, wallet-sized licence will be issued in addition to the

traditional ‘certificate’ licence from 1 July 1994.

The second phase will require amendments to the Telecommunications Act 1991 to provide AUSTEL with the power to issue class licences specifying the kinds of cabling work that persons would be permitted to perform. All current personal licences will carry over into this regime.

TELECOMMUNICATIONS NATIONAL CODE

Draft Code

AUSTEL has been administering the draft Telecommunications National Code (‘the Draft Code’) since September 1992. The objective of the Draft Code was to enable carriers to roll out networks quickly while remaining sensitive to environmental, cultural, planning and development standards.

O

Carrier C om pliance

During the reporting period, AUSTEL received 40 written complaints from residents and councils about the erection of mobile towers. Some complaints were in the form of petitions, including one with some 700 signatures from the residents of Mount Eliza. This objection related to a proposed Optus mobile tower site. Optus referred the issue to the Commonwealth Environment Protection Agency but no decision had been made by the Agency at the time of this Report. AUSTEL found no breach of the Draft Code in the reporting period.

The Final Code

On 30 June 1994 the Telecommunications National Code was tabled in Parliament in its final form as a disallowable instrument and published in the Commonwealth

Gazette.

The major features of the revised Code are:

• carriers will be subject to more stringent environmental requirements;

• there is far greater requirement for consultation;

• where a carrier and a Council cannot resolve questions on environmental impact, the issue must be referred to the Department of Environment, Sport and Tourism;

• carriers will be required to co-locate tower facilities where this is technically feasible, compatible with network configuration, and would minimise adverse effects on the environment.

Carriers’ Pow ers to Enter Land

As reported previously, under the Act carriers have the right to access private property for the purposes of installing telecommunications infrastructure. While AUSTEL does not have a role in resolving disputes

arising in this area, AUSTEL has continued to be responsible for ensuring that the carriers meet their licence requirement of giving reasonable written notice of their intention to exercise their powers in relation to any land access.

SPECTRUM ALLOCATION FOR PACTS

Advice to Minister

Owing to insufficient spectrum availability in the 900 MHz band in Sydney and Melbourne for supporting all the new services being developed,

O

the Minister decided, in February 1992, that the uptake of the sole primary allocation of radio frequency spectrum for Cordless Telecommunications Services (CTS

(which includes Public Access Cordless Telecommunications Services (PACTS)) be subject to an annual audit by AUSTEL. In January 1994, AUSTEL reported to the Minister on the uptake

of frequencies for PACTS. The report endorsed AUSTEL’s previous recommendation that the primary allocation of the 861-865 MHz band to CTS should continue.

&

CHAPTER FIVE

TECHNICAL STANDARDS AND REGULATION

AUSTEL is the technical regulator of Australia’s telecom m unications industry. This role includes setting and m aintaining national telecom m unications technical standards and managing A ustralia’s input to the setting of international technical standards.

id· STANDARDS DEVELOPMENT

Review o f Standards

During the year major progress was made on reviewing existing standards. Details are provided in Appendix 9-

Standards Advisory Com m ittee

AUSTEL's Standards Advisory Committee is comprised of peak industry representatives and provides advice for the development of

mandatory regulatory standards. It met four times during the year and its members provided the resources for AUSTEL's standards activities. The Standards Advisory Committee also assists in identifying standards work which is more appropriately progressed as voluntary standards through Standards Australia.

In addition to consideration and recommendation of a large number of revisions and amendments to standards, the Standards Advisory

Committee considered a number of other ongoing issues, including Intellectual Property Rights, End to End Network Performance Standards,

Subscription TV and Caller Identification.

GSM Standards Groups

AUSTEL continues to participate in both the Global Standard for Mobiles (GSM) Memorandum of Understanding Group and the Asia Pacific GSM

Cooperative Group activity. Through these groups AUSTEL has access to the experiences of other GSM operators and regulators and is able to

influence future development of the GSM service. As part of this activity AUSTEL is working toward the development of international roaming

across the region and establishment of a regional bill clearance and settlement house.

N ew S ta n d a rd s

During the year work progressed on developing important new standards, including :

• A technical standard for Line Isolation of Devices for the Civil Aviation Authority. The purpose of the standard is to enable the CAA

to gain exemption from the need to comply with the full range of AUSTEL Technical Standards. It applies to facilities which are used

principally for ensuring the safety of air navigation (including navigation aids and air traffic control systems).

O

| B l • A broadcaster Interface Standard for the purpose of exempting broadcaster equipment and cabling

from technical regulation.

• The development of a standard which will define a Conformance Testing Specification for quantifying the performance distortion of lower data rate voice encoding schemes. This distortion is measured in Quantising Distortion Units, generated by the conversion of speech from analogue to digital formats and then back again between currently used digital processes.

• The development of a technical standard for customer equipment to access ‘broadband’ services through Synchronous Digital Hierarchical interfaces offered by a carrier at the bit rates of 155 and 622 Mbit/s.

M obiles

E lectrom agn etic C om p a tib ility b etw een AMPS a n d GSM term in als

AUSTEL’s interest continues in the study of electromagnetic compatibility (EMC) and electromagnetic interference between

telecommunications devices. Ongoing activities cover Analogue Cellular Telephone Immunity, Immunity standards development, and operator

based approaches to EMC and GSM / EMC issues.

R esolu tion o f GSM / H ea rin g A id EMC Issu e s

AUSTEL continues to study the unintended interaction of GSM equipment with other electronic devices, under the leadership of the Spectrum Management Agency. Of the various interactions, those with hearing aids were the most prominent.

Transition Issu e s o f AMPS to GSM

As the analogue mobile telephone service is to close down by the year 2000, AUSTEL is working towards a

smooth transition to the digital mobile service (GSM). Included in this is technical interpretation and advice to the public concerning issues such as rollout/coverage, transmission security, transmission quality, distinction between terminal and subscriber identities, mechanisms for international roaming and electromagnetic compatibility. A public information campaign has been operating since April 1994 to increase public awareness of these issues.

S ta n d a rd isa tio n o f M obile P hone In stallation P ra ctice

On the recommendation of industry, AUSTEL initiated drafts of an installation standard for cellular

« 9

|D l phones in vehicles. The proposed voluntary standard was passed to Standards Australia, and AUSTEL is

now participating in the Standards Australia committee which is progressing the development of the draft.

AUSTEL’s W ireless PCS Investigation

Following completion of studies in June 1993, AUSTEL conducted public presentations concerning its findings

on future Wireless Personal Communication Services as presented in its draft report. The final report,

incorporating further views and feedback received, was subsequently prepared and, with the Minister’s approval, publicly distributed.

AUSTEL is now working with the Spectrum Management Agency’s RCC Working Group on Radiocommunications Provisions fo r

New Telecommunication Services which is formulating a view on the spectrum recommendations of AUSTEL’s final report.

End to End N etwork Perform ance Standard

The Minister has directed AUSTEL to establish standards for the quality of performance of an end to end

telecommunications service. To this end AUSTEL has established a working group which met nine times during the year. The working group is addressing public network to public network interconnection as well as customer network to carrier network connections.

Network Boundary Investigation

AUSTEL has undertaken an investigation into the definition of the network termination point/network boundary. The purpose of the

investigation was to report to the Minister on the implications of changing the network termination

point to the property boundary.

At the end of July 1993, AUSTEL issued its draft report and invited public comment on its recommendations and findings. To

further explain the report and to help interested parties prepare submissions, AUSTEL convened two public seminars in Melbourne and Sydney in

August 1993- A final report recommending the network boundary be located at or near the building boundary was provided to the Minister in September 1993.

O

|Dfl INDUSTRY DEVELOPMENT ARRANGEMENTS

The Industry Development Arrangements (the Arrangements) for customer equipment, underwent a major change at the beginning of this year. Companies which entered into

either a ‘Partnerships for Development’ program or a ‘Fixed Term Agreement’ with the Department of Industry, Science and Technology are now able to seek an exemption from the Arrangements.

A dm inistration o f the Arrangem ents

Twenty-seven suppliers entered the fifth year of the Arrangements. During the year ten suppliers sought and were granted endorsement, one supplier chose to exit the scheme, and eighteen suppliers sought and were granted an exemption from the Arrangements. Hence at the end of the year, eighteen suppliers remained endorsed under the Arrangements.

AUSTEL’S TYPE APPROVALS PROCESS

Under the Act, AUSTEL has responsibility for the issue of permits. During the year, we assessed 1219 applications, issued 502 permits and 570 variations of permits. Fifteen applications were refused and nine were cancelled for various reasons.

Process review

In May 1994, AUSTEL commenced a review of its type approvals process to ensure that the administration remained relevant not only to AUSTEL’s requirements, but also to

those of agencies around the world.

Commencing the review we conducted a conference in June 1994 entitled, AUSTEL’ s Type Approvals Process - The Way Ahead. The conference attracted 140 representatives from overseas regulatory bodies, test houses, industry and government, as well as AUSTEL participation.

TEST HOUSE ACCREDITATION

With the increasing demand for international agreements and a common approach to approvals processes in various parts of the world, AUSTEL is seeking to apply a more international approach to the accreditation of test houses which test customer equipment against the requirements of AUSTEL’s technical standards.

In November 1992, a Memorandum of Understanding was signed with the National Association of Testing Authorities (ΝΑΤΑ) whereby ΝΑΤΑ would accept the prime responsibilities of assessment and registration of test houses against its

O

|D l requirements and the AUSTEL technical standards. Since then AUSTEL and ΝΑΤΑ have been

working in concert to develop an operational procedure. The first trial assessments under the new approach have been made and introduction of the new procedures is now planned to take place in the third quarter of 1994.

Overseas test houses will also be required to comply with the new procedures, except that foreign assessment bodies having operational

agreements with ΝΑΤΑ will be requested to carry out the assessments necessary to complete the registration of those applicants.

INTERNATIONAL STANDARDS

Australian T elecom m unication Standardization Com m ittee (ATSC)

AUSTEL has the responsibility for managing Australia’s input to international technical standards in telecommunications. The ATSC assists AUSTEL with this management.

AUSTEL chairs the ATSC and it is through the ATSC and its National Study Groups that the Australian telecommunications industry remains

aware of, and participates in, the activities of international and regional telecommunications standards bodies. As a consequence Australian industry

has the opportunity to access

standards which form the basis of global telecommunications markets.

The ATSC met three times during the year. Some of the main matters considered were:

• The Intellectual Property Rights Policy and Undertaking developed by the European T elecommunications

Standardisation Institute.

• The progression of Recognised Operating Agency status in the ITU for Telstra and Optus.

• Broadening of Australian industry participation in National Study Group activities.

• User/consumer participation in standards setting.

Consum er Role in Standards Setting

AUSTEL continued its sponsorship of a study conducted by the Consumers’ Telecommunications Network of suitable mechanisms for ensuring

effective and representative consumer participation in the standards-setting process.

Inform ation M anagem ent System

The ATSC saw the implementation of an electronic Bulletin Board Service as

O

Id· a means of improving industry and community access to telecommunication standards work. AUSTEL’s Bulletin Board Service was put into public operation in December

1993. In the first six months of operation, over 1000 users accessed the system and over 3000 calls were received.

The Bulletin Board contains information on ATSC and National Study Group activities, available standards, AUSTEL permits, Certified Component Listings and Technical Approvals Guides.

ITU-T, ETSI AND T1 ACTIVITIES

Under policy direction of the Department of Communications and the Arts AUSTEL has managed Australia’s input to the ITU Telecommunication Standardization Sector (ITU-T) since January 1991. During the year, 50 Australian contributions were submitted to the ITU-T and Australian delegations attended 14 Study Group meetings and two Telecommunication Standardization Advisory Group meetings, chaired by Dr Bob Horton, an AUSTEL member.

We also continued our association with two key regional standards organisations - the European Telecommunications Standards Institute (ETSI) and the United States

Committee T1 (Telecommunications).

We continued our contribution towards collaboration and harmonisation of regional and international standards through the Global Standards Collaboration (GSC) group. AUSTEL hosted the first GSC meeting in Melbourne in March 1994. Representatives of the ITU, ETSI, T1 and national standards bodies of Canada, Japan, Korea and Australia attended the meeting. Representatives from New Zealand and the Asia Pacific Telecommunity attended as observers.

Study o f O pportunities

As part of a syndicated consultancy, AUSTEL supported a research project on technical standards. The project aimed to identify the appropriate action for establishing a strategic framework for Australian and New Zealand participation in international standards setting, with particular emphasis on the Asia-Pacific region. The final report for the project was completed in June 1994.

APEC

In May 1992, the Asia-Pacific Economic Cooperation (APEC) Telecommunications Working Group identified the need for greater consultation and cooperative involvement of the APEC economies

ID1 in telecommunication standards activities within the region as an integral part of the international standards-making environment.

AUSTEL is currently assisting the Department of Communications and the Arts with a proposal for a Telecommunications Information

Sharing Project. The objective of the project is to promote members’ independent participation in the ITU standards process, as well as general information sharing.

INSPECTORATE

The Inspectorate completed 99 investigations into alleged offences against the technical regulation requirements of the Act.

These matters were broken down as follows:

• Sale/supply of non-permitted customer equipment TOTAL = 30

• Connection of non-permitted customer equipment TOTAL = 7 4 unproven, 3 disconnections

ordered

• Unlicensed cabling TOTAL = 48 15 unproven, 2 referrred to the Director of Public

Prosecutions, 31 warnings issued

• Performance of cabling by an unlicensed person TOTAL = 6 2 unproven, 4 warnings issued and work rectified

• Contravention of permit TOTAL = 8 3 unproven, 5 proven product rectification occurred

In addition the Inspectorate undertook 105 inspections of retailers/suppliers for compliance purposes. Of these 14 were found to be below standard, and warnings were issued accordingly.

Λ

CHAPTER SIX

UNIVERSAL SERVICE OBLIGATION

AUSTEL is responsible fo r adm inistering the Universal Service Obligation (U S O ) of the carriers. In particular, AUSTEL is responsible fo r assessing the contribution carriers m ust make to ensuring that standard telephone services, and payphones, are reasonably accessible to all people in Australia.

AUSTEL’S ROLE

AUSTEL’s role in the USO levy process is to assess the level of the Net Universal Service Cost (NUSC) and the proportions of this cost that should be borne by the participating carriers.

During 1992-93 and 1993-94, Telstra was the sole universal service carrier for Australia. Other participating

carriers are required to assist in the provision of the USO by contributing to the USO levy trust fund, set up for

the purposes of delivering a levy contribution from non-USO carriers to the USO carriers. The 1992-93 financial year was the first year for which Optus was required to

contribute.

1 9 9 2 -9 3 USO LEVY CLAIM CYCLE

The process of assessing the 1992-93 USO claim levy cycle began in August 1992, when Telstra filed a list of proposed loss-making service areas for

the 1992-93 financial year. After some deliberation, final Net Cost Areas (NCAs) for the 1992-93 financial year were declared by AUSTEL on 9 July

1993,

Telstra lodged a claim for a levy credit with AUSTEL in July 1993. Subsequently, Telstra and Optus provided their assessments of timed

traffic (which provides the basis for assessing USO liability). On 3 June 1994, AUSTEL assessed the Universal Service levy liabilities and entitlements

for the 1992-93 financial year. The participating carriers were notified and a notice of assessment also appeared in the Commonwealth Gazette on 15 June 1994. Subsequent to this

notification, Optus has made a payment into the USO levy trust fund and Telstra has received a payment from the trust fund.

In this first year of operation of the USO levy, a large number of issues had to be reviewed prior to AUSTEL performing its assessment. These

included the definition of timed traffic for USO share purposes, the USO model methodology for estimating the

NUSC, and auditing and verification requirements. During this period AUSTEL had to extend its period of consideration three times in order to

perform a satisfactory assessment of the USO liabilities and entitlements.

1 9 9 3 -9 4 USO LEVY CLAIM CYCLE

In August 1993 Telstra filed a list of its proposed loss-making areas with AUSTEL for the 1993-94 financial year. The model presented by Telstra for use by AUSTEL in consideration of its

declaration of NCAs incorporated a number of changes to the model of the previous year.

After discussions with Telstra, AUSTEL declared NCAs for the 1993-94 financial year in October 1993.

USO MODEL REVIEW the complaints have come from

consumers in outer urban and rural areas of Australia. Once Telstra delivered its claim for a levy credit, on 28 July 1993, AUSTEL delivered information to

Optus on the USO model and methodology used by Telstra to meet the avoidability principles required by the Act.

reference to AUSTEL’s Views o f Telstra's Universal Service Obligation, and have generally been brought to a satisfactory conclusion. Details of complaints are

Investigations have taken place with

included in Appendix 2.

By April 1994, detailed discussions between Optus, Telstra, Vodafone and AUSTEL had confirmed that all parties believed that a review of the USO model and methodology was required to:

• develop a less resource intensive model;

• provide an agreed framework with which the legislative principles could be effectively applied into the future; and,

• agree to a dispute resolution process which would limit the cost of administering the USO levy regime. AUSTEL anticipates that the review will commence in late 1994.

Throughout the year, AUSTEL has continued to receive complaints from consumers alleging a failure on Telstra’s part to adequately fulfil its universal service obligation. Most of

COMPLAINTS

A

&

A

|π 1 CHAPTER SEVEN

AUSTEL THE ORGANISATION

A U S TE L’s m ission s tatem en t reflects its role of prom oting com petition, protecting consum ers and facilitating technical excellence under the Telecommunications Act 1991.

As the independent industry-specific regulator, w e will guide the telecom m unications industry through current regulatory changes to w orld- class perform ance th a t best m eets the interests of users and Australia’s social and econom ic goals.

ESTABLISHMENT, OVERALL RESPONSIBILITIES, FUNCTIONS AND POWERS

AUSTEL was established by the Telecommunications Act 1989 and commenced operation on 21 June 1989. The Telecommunications Act

1991 replaced the 1989 Act from 1 July 1991 and continues AUSTEL’s existence as a statutory authority with overall responsibility for:

• economic and technical regulation of the Australian telecommunications industry including, in particular, the promotion of fair and efficient market conduct within the industry and the implementation of the Commonwealth Government industry policies relating to telecommunications.

• giving advice and assistance to the Australian telecommunications industry.

• giving reports and advice to the Minister in relation to the industry.

During 1993-94, the Ministers with responsibility for legislation from which AUSTEL derives its functions

and powers were:

• Senator the Hon. Bob Collins, Minister for Transport and Communications

• The Hon. Michael Lee, Minister for Communications and the Arts, Minister for Tourism (appointed 30 January 1994).

CONSULTATIVE ARRANGEMENTS

As part of its consultative arrangements, AUSTEL has established a number of Advisory Committees.

These committees currently include standards, numbering, consumer issues, law enforcement and compliance. AUSTEL also chairs the Australian Telecommunications

Standardization Committee (formerly the Australian CCITT Committee) which assists us in managing Australia’s contribution to the setting of international technical standards for telecommunications.

MEMBERSHIP

AUSTEL consists of a Chairman and two members. The Minister may also appoint such Associate Members as he or she thinks fit.

The legislation provides that a person appointed to AUSTEL shall have knowledge of, or experience in, one or more of the following fields: industry, commerce, technology, consumer affairs, economics, law and public administration.

w m

Notes on the background of the Chairman, Members and Associate Members are provided in Appendix 7.

ORGANISATIONAL STRUCTURE

AUSTEL’s organisational structure (current as at 30 June 1994) is set out in the chart on page 50.

MANAGEMENT ISSUES

AUSTEL is committed to achieving its mission through the continuous improvement of management practices and policies. In 1993-94, we have reviewed a number of areas with a view to improving our overall management effectiveness.

First, we have concentrated on clarifying the roles and responsibilities of and interfaces between staff in key functional areas, leading to a reorganisation of work, accountability and responsibility. We have also made continuing efforts to match resources more effectively to priorities across AUSTEL. We have reviewed our Industrial Democracy and Occupational Health and Safety framework with a view to improving their effectiveness, and some changes will be implemented in 1994-95. We continue to foster and support Equal Employment Opportunities, and have implemented a Workplace Bargaining strategy designed to maximise the likelihood of a successful Enterprise

Agreement. Further information on these matters is in Appendix 4.

ADMINISTRATION

Over the past financial year, AUSTEL has been exploring ways to maximise the efficiency with which the organisation is run, and to put in place safeguards to ensure the proper use of resources.

To these ends, the past financial year has seen a major review of State and Head Office accommodation to seek increased efficiency, resulting in a renegotiation of our leases. A fraud control plan, developed specifically for AUSTEL’s purposes, has also been put in place.

HUMAN RESOURCE MANAGEMENT

Our Corporate Plan specifically recognises the contribution of our staff. This focus on people as the means by which AUSTEL can achieve its objectives is a tenet of AUSTEL’s culture. Our goal of allowing all staff members to maximise their contribution to AUSTEL, while achieving their personal goals, emphasises the parallel development of person and organisation.

|Π ΐ In particular, AUSTEL has initiated and encouraged:

• staff development. The focus is on enhancing skills and increasing efficiency within AUSTEL’s functions and work.

• performance management programs. Performance appraisal, performance agreements and performance pay arrangements are

in place for Senior Officers and the Senior Executive Service. A Pilot Program for ASOl-6 staff was successfully trialled and should be fully implemented in 1994-95.

• workplace bargaining. Staff have actively participated in providing suggestions for inclusion in AUSTEL's Workplace Bargaining

arrangements and management proposes to consult with staff associations to begin negotiations in the near future.

PUBLIC AFFAIRS

AUSTEL has continued its efforts to raise the level of awareness within the community of issues in the telecommunications industry, and AUSTEL’s role in those issues. An

important factor in this education process is the production of publications and reports to the Minister such as the Competitive

Safeguards and Carrier Performance Report as well as The CO T Cases Report and occasional papers. Two new brochures were also produced -

one to inform the public about the phase-out of the analogue mobile network, and the other as part of a broader campaign to inform Australians travelling overseas about

certain telecommunications products, such as cordless telephones, purchased in other countries.

Media contact has increased significantly over the past year with issues such as the COT cases, privacy, telephone number changes and preselection generating considerable interest. A total of 36 media releases were issued during the year

announcing various AUSTEL decisions and reports.

€©[ίί1[;>©(ϋ)ΜΤΕ 8ΤΓΚΙϋΙ©¥Î¡Î™Î¯Ï‹(§

ASSOC MEMBER

ASSOC MEMBER

CHIEF

DPERATING OFFICER ECONOMIC ADVISER

PROJE CTS DIRECTOR

SPECIALIST ADVISER, NETWORKS EXECUTIVE

S U P P O R T

TECHNICAL STANDARDS BRANCH

CORPO RATE R E SO U R C E S BRANCH

TECHNICAL REGULATION BRANCH

INDUSTRY AFFAIRS BRANCH

CONSUMER AFFAIRS BRANCH

Education C am paign

Numbering Education C am paign

Obligation·

Admlnietretion

Human R e e o u r c e M ana gem ent

Pricing A Quality of

Carrlet Allaire

Equipm ent S ta n d ard ·

Equipm ent S ta n d ard ·

Numbering

State Office·

Public Affaire

J im · 1

A

APPENDIXES

APPENDIX 1 ........................................................ COMPLIANCE INDEX

APPRNDIX 2 .....................................................COMPLAINTS 1993 -1 9 9 4

APPENDIX 3 .................................................... DIRECTIONS TO CARRIERS

APPENDIX 4 ....................................... HUMAN RESOURCE MANAGEMENT

APPENDIX 5 ................................................... FINANCIAL STATEMENTS

APPENDIX 6 .................................... STATE OFFICE CONTACT ADDRESSES

APPENDIX 7 ...................................................................... MEMBERSHIP

APPENDIX 8 .......................... LIST OF AUSTEL PUBLICATIONS 1993 -1 9 9 4

APPENDIX 9 .......................... FIXED EQUIPMENT STANDARDS 1993 -1 9 9 4

APPENDIX 10 ...................................................... ADMINISTRATIVE LAW

APPENDIX 1

INDEX OF REPORT’S COMPLIANCE WITH REPORTING GUIDELINES

Specific guidelines for the preparation of Annual Reports for Statutory Authorities were last issued in 1982. However, this document, entitled Guidelines fo r the Content, Preparation a n d Presentation o f A nnual Reports by Statutory Authorities, as incorporated in the Senate Hansard of 11 November 1982 (p. 266), does not reflect more recent developments in public sector administration. In view of the lack of currency of these Guidelines, we decided to base the report on the March 1994 advice from the Department of Prime Minister and Cabinet - Revised A nnual Report Requirements fo r Departments.

In addition, the Telecommunications Act 1991 has specific reporting requirements which must be met in the Annual Reoort.

Checklists showing compliance with the outdated Guidelines for Statutory Authorities and the current Guidelines for Departments of State, as well as meeting our requirements under the Act, are set out below.

A. G uidelines for th e C ontent, Preparation and Presentation o f Annual Reports b y Statutory A uthorities

G uidelines

Enabling Legislation

Responsible Minister

Powers, Functions and Objects

Directorship and Staff

Financial Statements

Activities and Reports

Operational Problems

Subsidiaries

Coverage

Chapter 7

Chapter 7

Chapter 7

Chapter 7, Appendix 7

Appendix 5

Chapters 1 - 7 , Appendix 8

Chapters 1 - 7

Nil

B. Revised A nnual Report R equirem ents for Departm ents (issu ed by Departm ent o f Prime M inister and Cabinet, 18 March 1994)

G uidelines Coverage

Secretary's (Board's) letter of Transmission to the Minister p.ii

Table of contents p.V -ix

Introduction p. iii

Portfolio overview not applicable

Corporate overview Chapter 7

Program performance reporting Chapters 1 - 7

Compliance Index Appendix 1

Staffing overview Appendix 4

Financial statements Appendix 5

Summary tables and reconciliation tables of appropriations and program elements not applicable

Contact officer details p. iv

Alphabetical index p. 125

C. Specific requirem ents o f enabling legislation

G uidelines Coverage

s. 343 (2)(a), (b) and (c) - AUSTEL to include copies of directions to carriers under s. 46 of the Act Appendix 3

s. 343 (2)(d) - AUSTEL to provide a report on the number and types of complaints made, and investigations conducted under Part 15

O

Chapters 1 - 4 , Appendix 2

APPENDIX 2

COMPLAINT PARTICULARS 1 9 9 3 -9 4

GENERAL COMPLAINTS

The following categorised complaints were received by AUSTEL’s Consumer Protection Section in 1993-94 :

Number of complaints referred to:

• Commonwealth Ombudsman 23

• Written enquiries forwarded to Telecommunications Industry Ombudsman (As of December 1993) 42

• Trade Practices Commission 14

• Telstra’s Customer Help Centre 6

• Office of Fair Trading 1

• DOCA (Dept of Communications and the Arts) 3

• ADMA (Australian Direct Marketing Association) 6

TOTAL 158

• Dealt with by AUSTEL 497

TOTAL NUMBER OF COMPLAINTS RECEIVED 655

o

A

Item isation o f T elep h one Calls — 20

Most of these complaints were from customers who considered it unfair that they could not get itemised billing for their STD and IDD calls until such time as their exchanges were upgraded. This also precluded them from access to Optus and various Telstra Flexiplans.

C onnection Fees — 36

Six of these complaints were referred to Telstra’s Customer Help Centre.

The remainder were handled by AUSTEL - nearly all of these were customers wishing to voice their dissatisfaction at the $50 connection fee, particularly where it only required an administration change in Telstra’s records.

O vercharging/B illing D isputes — 70

In future, the majority of billing and charging disputes will be forwarded to the Telecommunications Industry Ombudsman (ΤΊΟ). Eighteen complaints were forwarded after 1 December 1993.

Poor Service Q uality — 30

These complaints ranged from unreliable service to delays in the installation of new telephone lines, as well as quite a few from mobile customers expressing their dissatisfaction with congestion of the mobile network and ‘drop-outs’ during conversations.

D irectory P roblem s — 35

The majority of these complaints were in relation to Yellow Pages - a problem which does not come within AUSTEL’s jurisdiction. Most of the calls concerning White Pages related to wrong entries or omissions.

Public T elep h on es/P ayp h on es — 5

Complaints included the percentage use, location and cost of payphones. One complaint was referred to Telstra’s Customer Help Centre, the remaining four were dealt with by AUSTEL.

Θ

D elays in Fault Service Rectification - 4

Three complaints were referred to Telstra’s Customer Help Centre. The remaining complaint was referred to the TIO.

Unwarranted D isco n n ectio n —13

All of these complaints were resolved after referral to Telstra’s Customer Help Centre or the TIO.

Fax & Junk Fax C om plaints - 20

Most of these complaints were in relation to unwanted faxes and requests to be included on AUSTEL’s Junk Fax Register. The remainder were customers ringing a telephone number and finding they were connected to a fax line but still being charged for the call.

Unfair Telstra Practices — 68

Many complainants believed that it was unfair that not all customers have access to Telstra’s different Flexiplans and Saver Schemes, even when advertised outside the city areas.

Telstra Charging & Z onin g — 30

Complaints regarding Telstra’s charging zone policies.

Com plaints Regarding OPTUS - 70

Complaints generally related to billing disputes or difficulties with Preselection/ Balloting.

Com plaints Regarding VODAFONE - 3

One complaint regarding advertising was referred to the Trade Practices Commission. The others concerned Vodafone/Vodac’s price tariff.

O

Telstra/Optus Advertising — 23

The majority of these complaints concerned misleading advertising and were referred to the Trade Practices Commission. Six were regarding unwanted advertising or telemarketing calls to their home numbers and these were referred to the Australian Direct Marketing Association.

N um bering — 6

Mainly included complaints about wrong numbers and numbering allocation. All numbering enquiries and complaints were dealt with by AUSTEL.

Short D uration Calls — 45

Complaints regarding charges for short duration connections. For example, some consumers believed that they had been charged for connection to an engaged or unanswered line.

Post-Ballot Preselection Problem s — 80

These complaints are ongoing problems as each ballot has taken place. However, the percentage of post-ballot problems is small compared with the successful preselection figures overall.

Illegal/Fraudulent Practices - 1 5

These complaints included customers who alleged that their phones were being tapped or tampered with in some illegal way.

Privacy Issues — 23

Most of these were complaints about nuisance calls, and customers’ unlisted numbers being disclosed.

G eneral Enquiries - 59

These covered a wide range of issues and usually only required general advice or assistance from AUSTEL.

O

USO RELATED COMPLAINTS

A total of 36 complaints were received regarding the universal service obligation (USO). Of these, 16 involved payphones and 19 involved the standard telephone service and one involved access to mobile services.

Payphones

R em o va l o f p u b lic p a y p h o n e s b y T elstra - 6

All the complaints regarding unwanted removal of public payphones by Telstra remain under investigation. However, enquiries to date indicate that the significant losses incurred by these payphones exceeded the levels considered reasonable for provision of the universal service obligation in AUSTEL’s current view.

R e q u e st f o r re m o v a l o fp u b lic p a y p h o n e - 1

This was referred to the TIO as the issue involved the nuisance caused by the siting of the payphone.

R e q u e st f o r in stallation o fp u b lic p a y p h o n e —8

Three of these complainants were advised that losses incurred would exceed the levels considered reasonable for provision of the service under universal service obligation guidelines. One complaint lapsed due to failure to provide information requested by AUSTEL and in one instance negotiation has resulted in provision of a public payphone in a national park. Three requests for installation of a public payphone remain under investigation at this stage. However, it is unlikely that under the current USO guidelines the losses incurred would warrant installation.

Q u ality o f se rv ic e o f p u b lic p a y p h o n e — 1

Representations by AUSTEL resulted in a solar powered payphone in an Aboriginal community being connected to mains power ahead of schedule.

O

Standard T elep h one Service

D elay in in stallation o f s ta n d a r d telep h o n e se rv ic e —10

Three of these complainants were advised that connection would be provided ahead of scheduled timeframes and one complainant was successful in having the internal wiring installed by Telstra to the outside of internal walls (as result of delays) replaced. Six remain under investigation.

In a d eq u a te q u a lity o f s ta n d a r d telep h o n e se rv ic e — 6

Complainants advised in two of these cases that following exchange upgrade their service improved and one complainant was advised of scheduled exchange upgrade in 1995. Three remain under investigation.

R e q u e st f o r u p g ra d e to Calling Line Iden tification ( CLI) f a c ilitie s on s ta n d a r d telep h o n e se rv ic e —3

Following investigation two complainants were advised of proposed dates between 1994 and 1997 for upgrading of exchanges to enable CLI facilities and one complainant was connected to an upgraded exchange in December 1993.

A ccess to m obile se rv ic e s — 1

One complainant was advised that Telstra had met its obligation to provide access to the standard telephone service in the area and was advised of the roll-out of mobile services in the area by Telstra, Optus and Vodafone.

O

APPENDIX 3

DIRECTIONS TO CARRIERS UNDER SECTION 46 OF THE TELECOMMUNICATIONS ACT 1991

Under section 393 of the Telecommunications Act 1991, AUSTEL’s Annual Report must include a copy of each direction given to carriers under section 46 of the Act that does not disclose confidential information. Copies of these appear on the following pages.

Λ

AUSTEL

AUSTRALIAN TELECOMMUNICATIONS AUTHORITY

93/144

14 July 1993

Mr Jim Holmes Corporate Secretary Telstra Corporation Limited 41/242 Exhibition Street

MELBOURNE VIC 3000

Dear Mr Holmes

PUBLIC MOBILE TELECOMMUNICATIONS SERVICES DIRECTION

AUSTEL's investigation

Further to my letter of 11 June 1993, AUSTEL has completed its investigation of the issue whether Telstra is in a position to dominate the market in Australia for public mobile telecommunications services (which constitute a basic carriage service as defined in section 174 of the T elecom m unications A ct 1991) and it has concluded that Telstra is in a position to dominate that market. Its

reasons for this conclusion are set out in its enclosed report: Market D om inance: M obiles.

2. Accordingly, whilst Telstra is in that position, Telstra must in relation to the supply of public mobile telecommunications services comply with the terms of sections 183 and 197 of the Act.

Direction

3. AUSTEL, pursuant to section 46 of the Act, directs Telstra that in relation to the supply of public mobile telecommunications services Telstra must comply with sections 183 and 197 of the Act, that is to say -(a) Telstra must not discriminate between persons who acquire public

mobile telecommunications services in Australia in the market for those services in Australia in relation to -(i) the charges for those services;

(ii) the terms and conditions on which those services are provided;

5 QUEENS ROAD. MELBOURNE. VICTORIA POSTAL: P.O. BOX 744.1. ST KILDA RD. MELBOURNE. VICTORIA. 3004 TELEPHONE: (031 828 7300 FACSIMILE: (03.820 3021

o

2

(b) Telstra must not demand or receive payment of a charge for the supply of those services to persons unless so much of the charge as is attributable to the period in which the services are provided is worked out in accordance with the tariff as in force in the same form throughout that period.

4. This direction shall remain in operation and effect until revoked by AUSTEL and it shall be revoked by AUSTEL if it becomes satisfied that, in the events which have occurred, Telstra is no longer in a position to dominate the market in Australia for public mobile telecommunications services.

Further direction

5. Insofar as Telstra has received a payment of a charge for public mobile telecommunications services provided in Australia worked out otherwise than in accordance with a tariff given to AUSTEL by Telstra under section 190 of the Act, AUSTEL further directs Telstra that it shall forthwith -

(a) make arrangements for restitution to those customers who were charged and made a payment for the supply of those services, which payment Telstra was not entitled to charge or receive;

(b) inform AUSTEL of those arrangements.

Basis for the direction

6. AUSTEL's direction is given to Telstra pursuant to section 46 of the Act. Section 46 provides, amongst other things, that AUSTEL may give written directions to a carrier in connection with performing any of AUSTEL's functions under specified sections of the Act, including -

(a) section 37, (promotion of competition);

(b) section 38 (protection of consumers); and

(c) section 41 (licensing) and in particular enforcing conditions of licences issued under the Act - it being a condition of Telstra's licence as a mobile carrier that it comply with the Act (see section 62(a) of the Act).

Reason for direction

7. On the information available to it, AUSTEL has concluded that Telstra is in a position to dominate the market in Australia for public mobile telecommunications services. Its reasons for this conclusion are set out in its enclosed report - M arket D om inance: M obiles.

Supplementary

8. In reaching its conclusion that Telstra is in a position to dominate the market in Australia for public mobile telecommunications services, AUSTEL

Θ

3

recognises that the market is a dynamic market and that changes hereafter in the following factors identified in its M arket D om inance: M obiles report -(a) Telstra's ability to act without significant constraint in that market;

(b) the extent of the barriers to entry in that market;

(c) the degree of market concentration and market share;

(d) the nature of corporate relationships in the market; and

(e) the ability of market participants to differentiate their services,

may lead AUSTEL to a different conclusion.

9. On the information presently available to it, AUSTEL is of the view that a change in those factors to such an extent as to lead AUSTEL to a different conclusion is unlikely to occur within the immediate future. However, AUSTEL will be monitoring the market in Australia for public mobile telecommunications services and reviewing Telstra's position in that market quarterly.

10. In reviewing Telstra's position in the market AUSTEL may have regard to any or all of the following matters either individually or in appropriate groups and to other matters which an interested party such as Telstra may put to it as relevant to its consideration whether Telstra remains in a position to dominate the market in Australia for public mobile telecommunications services -

(a) the impact of Vodafone's entry into the market;

(b) a significant change in the current price differential between AMPS and GSM handsets;

(c) the emergence of a significant price differential between AMPS and GSM services;

(d) the takeup of GSM and its impact on AMPS;

(e) the outcome of the renegotiation of the current AMPS resale agreement between Telstra and Optus;

(f) the outcome of the renegotiation of the current GSM interconnection arrangements between Telstra on the one hand and Optus and Vodafone, respectively, on the other;

(g) the outcome of current litigation between Optus and Telstra relating to Telstra's Strategic Partnership Agreements and Flexiplan offerings;

(h) the outcome of AUSTEL's review of its discretionary charging option principles (currently due to be completed by 15 August 1993);

< ! >

4

(i) a significant change in market share (measured by revenue, minutes of use, services in operations and number of accounts) or a significant change in the pattern of competition in the market;

(j) a significant change in the shares of new customers between Telstra, Optus and Vodafone;

(k) a significant change in the customer chum rates between Telstra, Optus and Vodafone;

(l ) a significant change in the overall growth rate of the market;

(m) the outcome of AUSTEL's investigation of Telstra's and Optus' respective dealership arrangements in the public mobile telecommunications services market;

(n) the outcome of AUSTEL's investigation of Optus' complaint to the effect that Telstra is discriminating against Optus' customers in the time Telstra takes to connect customers to Telstra's AMPS network; and

(o) the changes, if any, in the relationship between Telstra's AMPS wholesale operation and its AMPS retail operation that Telstra may implement having regard to views expressed by AUSTEL in its enclosed M arket D om inance: M obiles report.

In monitoring the public mobile telecommunications services market and in conducting its review of Telstra's position in that market, AUSTEL will liaise closely with Telstra. AUSTEL's contact for that purpose is Mr Chris Zull, Manager, Business Economics (03 828 7417). Would you please nominate a Telstra contact for that purpose.

Yours sincerely

Robin C Davey Chairman

ATTACHMENT

Section 183 of the T e le c o m m u n ic a tio n s A c t 1991

(1) A carrier that is in a position to dominate a market for a particular kind of telecommunications service must not discriminate, between persons who acquire in that market telecommunications services of that kind, in relation to:

(a) the charges for the services; or

(b) the terms and conditions on which the services are supplied.

(2) Subsection (1) does not apply in relation to prescribed telecommunications services.

Section 197 of the T e le c o m m u n ic a tio n s A c t 1991

(1) This section applies where:

(a) a carrier is in a position to dominate a market for a particular kind of basic carriage service; and

(b) a BCS tariff of the carrier was in force in the same form throughout a period during which the carrier supplied a basic carriage service of that kind, in that market, to a person; and

(c) that kind of basic carriage service was included in that tariff as in force in that form.

(2) The carrier must not demand or receive payment of a charge for the supply of that service to the person unless so much (if any) of the charge as is attributable to that period is worked out in accordance with the tariff as in force in that form.

AUSTEL

AUSTRALIAN TELECOMMUNICATIONS AUTHORITY

TS/5081/02

5 August 1993

Mr J R Holmes Corporate Secretary Telstra Corporation Limited 41/242 Exhibition Street

MELBOURNE VIC 3000

Dear Mr Holmes

TELECOMMUNICATIONS ACT 1991: SECTION 46 LAW ENFORCEMENT CONSULTATION DIRECTION

On 15 July 1992 the Minister for Transport and Communications gave to AUSTEL a direction under section 50 of the T elecom m un ication s A ct 1991 relating to the law enforcement consultation principles in carrier licence conditions. A copy of the Minister’s Direction forms Attachment A to this letter.

Since receiving the direction, AUSTEL has -• maintained a Law Enforcement Advisory Committee with membership and functions in terms of paragraphs 1 ,2 and 3 of the Minister’s Direction

• establish and maintained a New Technology Sub Committee subordinate to and reporting to the Committee in terms of paragraph 5 of the Minister's Direction

• sought the views of law enforcement agencies in each jurisdiction on which Commonwealth, State and Territory officers and agencies may require help from the licensees under clause 3.5 of the T elecom m un ication s (G eneral T elecom m un ication s L icen ces)

D eclaration (No 2 ) o f 1991 as required by paragraph 6 of the Minister's Direction.

As discussed and agreed in the Committee AUSTEL shall from time to time and having regard to the circumstances of the particular case to comply with paragraph 7 of the Minister's Direction determine principles to a ssess what help is reasonably necessary under clause 3.5 of the Declaration and establish appropriate procedures for resolving disagreements between a licensee, on the one hand, and the Commonwealth, State or Territory agencies, on the other, and on the charge for the help provided by the licensee having regard to the circumstances of the particular case .

5 QUEENS ROAD. MELBOURNE. VICTORIA POSTAL: P.O. BOX 7443. ST K1LDA RD. MELBOURNE. VICTORIA. 3004 TELEPHONE: (03) 828 7300 FACSIMILE: (03) 820 3021

Paragraph 4 of the Minister's Direction requires AUSTEL to give to Telstra and Optus a direction in terms of the following, a draft of which your company has had the opportunity to comment on.

Direction

Pursuant to paragraph 4 of the Minister's Direction and to section 46 of the T elecom m unications A c t 1991 which, amongst other things, empowers AUSTEL to give written directions to carriers in connection with the performance of AUSTEL's licensing functions, AUSTEL directs Optus

Communications Limited to -• consult with Commonwealth, State and Territory law enforcement agencies about its proposals to develop the new technologies in its telecommunications activities through the vehicle of the New

Technology Sub Committee of AUSTEL's Law Enforcement Advisory Committee

• give to the agencies specified in Attachment B to this letter such help as in reasonably necessary for any of the following purposes -- enforcing the criminal law and laws imposing pecuniary penalties

- protecting the public revenues

- safeguarding the national security

• comply with principles to be established by AUSTEL from time to time for assessing what help is reasonably necessary in terms of clause 3.5 of the T elecom m unications (G eneral T elecom m un ication s L icence) D eclaration (No 2) o f 1991 and any

procedures established by AUSTEL from time to time for resolving disagreement between Optus, on the one hand, and the Commonwealth, State or Territory on the other, for the help to be provided by Optus.

Yours sincerely

Robin C Davey Chairman

a t t a c h m e n t a

CCXMCNXEALTH CE AUSTRALIA

TELECOMMUNICATIONS ACT IS91

DIRECTION UNDER SECTION 50

I, BOB COLLINS, Minister of State for Transport anc Communications, pursuant to section 50(1) of the Telecommunications Act 1951. hereby give to the Australian Telecommunications Authority (AUSTEL) the following direction relating to the law enforcement consultation principles in telecommunications carrier licence conditions.

1. AUSTEL shall maintain a Law Enforcement Advisory Committee (LEAC).

2. Membership of the committee shall include representatives as nominated by the following agencies:

(i) AUSTEL

(ii) Attorney-General's Department

(iii) Australian PecerAl Police

(iv) Australian Police .Ministers ' Council

(v) Australian Security Intelligence Organization

(Vi) Defence Signals Directorate

(vii) Department of Transport and Communications

(viii) National Crime Authority

(ix) Licensed telecommunications ca-— · e-s .

3. The functions of the Committee are to include:

(a) to advise AUSTEL on law enforcement and security issues;

(b) to provide a forum for the exchange of views on telecommunications related law enforcement and security issues;

(c) to provide a forum for advice to government on law enforcement and security issues relating to telecommunications; and

(d) to facilitate coordination of law enforcement and security aspects of developments in the telecommunications network.

4. In acccrdar.cs with sub-clause 3.3 of one Telecommunications (General Telecommunications Licences) Declaration (Me. 2) of 1991, AUSTEL shall direct the licensees to consult with Commonwealth, State and Territory

law enforcement agencies about licensees' proposals to develop and use new technology in their telecommunications activities. In its direction to licensees, AUSTZl must

take proper account of the licensees' commercial interests curing the consultative process, and must require that only agencies with an interest in interception need to be

consulted.

5. In accordance with sub-clause 3.4 of the general telecommunications licence, A.USTZL shall maintain a working group, which will be subordinate to and report to the 1EAC, for the purpose of consulting with the Commonwealth, State

and Territory law enforcement agencies about licensees' proposals to develop or introduce new technology in their telecommunications activities.

5. AUSTEL shall seek the views of law enforcement agencies of each jurisdiction to specify which Commonwealth, State ar.c Territory officers and agencies may require help from the licensees under sub-clause 3.5 of the general telecommunications licence.-

7. AUSTEL shall establish appropriate principles to assess what help is reasonably necessary under sub-clause 3.5 of the general telecommunications licence and shall also

establish appropriate procedures for resolving disagreement between the licensee and the Commonwealth, State or Territory on the charge for the help provided by the licensee .

8. The calculation of charges must ensure that the licensee neither profits from nor bears the costs of helping to enforce the criminal law ar.c laws imposing pecuniary penalties, protecting the public revenue or

safeguarding national security.

9. A.USTEL shall seek my views as Minister for Transport and Communications and, through the Department of Transport ar.d Communications, the views of the Attorney-General in any matters with significant law enforcement or national

security policy implications.

Transport and Communications

ATTACHMENTB

LIST OF SPECIFIED OFFICERS AND AUTHORITIES

State and Territory police forces

Australia Security and Intelligence Organisation

National Crime Authority

Australian Federal Police

New South Wales Crime Commission

Queensland Criminal Justice Commissioner

New South Wales Independent Commission against Corruption

Australian Taxation Office

Australian Customs Service

Australian Securities Commission

Commonwealth departments and authorities with significant criminal law enforcement or revenue protection responsibilities

Australian Reports and Analysis Centre

State and Territory revenue authorities

« »

AUSTEL

AUSTRALIAN TELECOMMUNICATIONS AUTHORITY

TS/5081/02

5 August 1993

Mr I Boatman Chief Operations Officer Optus Communications Limited 54 Carrington Street

SYDNEY NSW 2000

Dear Mr Boatman

TELECOMMUNICATIONS ACT 1991: SECTION 46 LAW ENFORCEMENT CONSULTATION DIRECTION

On 15 July 1992 the Minister for Transport and Communications gave to AUSTEL a direction under section 50 of the T elecom m unications A ct 1991 relating to the law enforcement consultation principles in carrier licence conditions. A copy of the Minister's Direction forms Attachment A to this letter.

Since receiving the direction, AUSTEL has -• maintained a Law Enforcement Advisory Committee with membership and functions in terms of paragraphs 1, 2 and 3 of the Minister's Direction

• establish and maintained a New Technology Sub Committee subordinate to and reporting to the Committee in terms of paragraph 5 of the Minister's Direction

• sought the views of law enforcement agencies in each jurisdiction on which Commonwealth, State and Territory officers and agencies may require help from the licensees under clause 3.5 of the T elecom m unications (G en eral T elecom m unications L icen ces)

D eclaration (No 2 o f 1991 as required by paragraph 6 of the Minister's Direction.

As discussed and agreed in the Committee AUSTEL shall from time to time and having regard to the circumstances of the particular case to comply with paragraph 7 of the Minister's Direction determine principles to a ssess what help is reasonably necessary under clause 3.5 of the Declaration and establish appropriate procedures for resolving disagreements between a licensee, on the one hand, and the Commonwealth, State or Territory agencies, on the other, and on the charge for the help provided by the licensee having regard to the circumstances of the particular case.

S QUEENS ROAD. MELBOURNE. VICTORIA POSTAL: P.O. BOX 7443. ST KILDA RD. MELBOURNE. VICTORIA. 3004 TELEPHONE: (03) 828 7300 FACSIMILE: 103) 820 3021

Paragraph 4 of the Minister's Direction requires AUSTEL to give to Telstra and Optus a direction in terms of the following, a draft of which your company has had the opportunity to comment on.

Direction

Pursuant to paragraph 4 of the Minister's Direction and to section 46 of the T elecom m un ication s A c t 1991 which, amongst other things, empowers AUSTEL to give written directions to carriers in connection with the performance of AUSTEL's licensing functions, AUSTEL directs Telstra Corporation Limited to -

• consult with Commonwealth, State and Territory law enforcement agencies about its proposals to develop the new technologies in its telecommunications activities through the vehicle of the New Technology Sub Committee of AUSTEL's Law Enforcement Advisory Committee

• give to the agencies specified in Attachment B to this letter such help as in reasonably necessary for any of the following purposes -- enforcing the criminal law and laws imposing pecuniary penalties

- protecting the public revenues

- safeguarding the national security

• comply with principles to be established by AUSTEL from time to time for assessing what help is reasonably necessary in terms of clause 3.5 of the T elecom m un ication s (G eneral T elecom m un ication s L icen ce) D eclaration (No 2 ) o f 1991 and any procedures established by AUSTEL from time to time for resolving disagreement between Telstra on the one hand and the Commonwealth, State or Territory on the other, for the help to be provided by Telstra.

Yours sincerely

Robin C Davey Chairman

commcnnealth of Australia ATTACHMENT A

telec o:z _ y . un icacions act is si

DIRECTION UNDER SECDICN 50

I, BCE COLLINS, 2iinister of Stare for Transport and Communications, pursuant to section 50(1) of the Telecommunications Act 1991. hereby give to the Australian Telecommunications Authority (AUSTEL) the following direction relating to the law enforcement consultation principles in telecommunications carrier licence conditions.

1. AUSTEL shall maintain a Law Enforcement Advisory Committee (LEA.C) .

2. Membership of the committee shall include representatives as nominated by the following agencies:

(i) AUSTEL

(ii) Attorney-General's Department

(ill) Australian Federal Police

(iv) Australian Police Ministers' Council

(v) Australian Security Intelligence Organization

(vi) Defence Signals Directorate

(vii) Department of Transport and Communications

(viii) National Crime Authority

(ix) Licensed telecommunications carriers.

3. The functions of the Committee are to include:

(a) to advise AUSTEL on law enforcement and security issues;

(b) to provide a forum for the exchange of views on telecommunications related lav enforcement and security issues;

(c) to provide a forum for advice to government on law enforcement and security issues relating to telecommunications; and

(d) to facilitate coordination of law enforcement and security aspects of developments in the telecommunications network.

4. In accordance with sub-clause 3.3 of rhe Telecommunications (General Telecommunications licences) Ceclararicn (No. 2) of 1991, Au'STEL shall direct rhe licensees ro consult with Ccnmcr.wea 1 rh, Stare and Territory

law er.f crcanent agencies about licensees ’ proposals ro develop and use new technology in their telecommunications activities. In its direction ro licensees, AUSTEL oust raxe proper account of the licensees ■ centr.ercial interests curing the consultative process, and rust require that only

agencies with an interest in interception need to be consulted.

5. In accordance with sub-clause 3.4 of the general telecommunications licence, AUSTEL shall maintain a working group, which will be subordinate to and report ro the LEA.C, for the purpose of consulting with the Commonwealth, State and Territory law enforcement agencies about licensees 1 proposals ro develop or introduce new technology in their

telecommunications activities.

5. AUSTEL shall seek the views of law enforcement agencies of each jurisdiction ro specify which Commonwealth, Stare and Territory officers and agencies may require help from the licensees under sub-clause 3.5 of the general telecommunications licence.-

7. ACSTEL shall establish appropriate principles to assess what help is reasonably necessary under sub-clause 3.5 of the general telecommunications licence and shall also establish appropriate procedures for resolving disagreement between the licensee and the Commonwealth, State or Territory on the charge for the help provided by the

licensee.

8. The calculation of charges must ensure that the licensee neither profits from nor bears the costs of helping to enforce rhe criminal law and laws imposing pecuniary penalties, protecting the public revenue or

safeguarding national security.

9. AUSTEL shall seek my views as Minister for Transport and Communications and, through the Department of Transport and Communications, the views of the Attorney-General in any matters with significant law enforcement or national security policy implications.

’ ransport and Communications

/

ATTACHMENTB

LIST OF SPECIFIED OFFICERS AND AUTHORITIES

State and Territory police forces

Australia Security and Intelligence Organisation

National Crime Authority

Australian Federal Police

New South Wales Crime Commission

Queensland Criminal Justice Commissioner

New South Wales Independent Commission against Corruption

Australian Taxation Office

Australian Customs Service

Australian Securities Commission

Commonwealth departments and authorities with significant criminal law enforcement or revenue protection responsibilities

Australian Reports and Analysis Centre

State and Territory revenue authorities

Λ

AUSTEL

AUSTRALIAN TELECOMMUNICATIONS AUTHORITY

92/596(6)

12 August 1993

Mr J R Holmes Corporate Secretary Telstra Corporation Limited

Fax 632 3215

Dear Mr Holmes

COT CASES

DIRECTIONS UNDER SECTIONS 46 AND 400

Reason for directions

Since August 1992 AUSTEL has been acting as an "honest broker" in an endeavour to facilitate settlement of claims by a number of Telecom's customers who describe themselves as the “C O T Cases", an acronym for the “C a su a lties o f T elecom " and it is for ease of reference that in this letter I refer to Telstra Corporation Limited as "Telecom".

2. The original C O T C a s e s were -• Mr Graham Schorer, Golden Messenger, North Melbourne, Victoria (spokesperson)

• Mrs Ann Garms, Tivoli Restaurant, Fortitude Valley, Queensland

• Mrs Maureen Gillan, Japanese Spare Parts, Enoggera, Queensland

• Mr Alan Smith, Cape Bridgewater Holiday Camp, Cape Bridgewater, Victoria

• Ms Shelagh Hawkins, Society Restaurant, Melbourne, Victoria.

3. The main complaints were to the effect that -• their phones did not ring when their customers were attempting to call them

5 QUEENS ROAD. MELBOURNE. VICTORIA POSTAL: P.O. BOX 744.1. ST KILDA RD. MELBOURNE. VICTORIA. 3004 TELEPHONE: (03] S28 7300 FACSIMILE: (03)820 3021

2

• their customers received a "busy" tone or engaged signal when their phones were not engaged

• calls placed to their businesses would "drop out"

• callers to their businesses would receive recorded voice m essages to the effect that their services had been disconnected when they had not been disconnected.

4. The C O T C a s e s also complained about -• Telecom's reluctance to admit that there was a problem with its network

• Telecom admitting there might be a problem with its network but that it was unique to the individual complainant when it was not

• Telecom representing that what it knew to be a network problem might be fixed by the complainant upgrading his or her customer equipment.

5. Notwithstanding that Telecom has effected settlements with each of the C O T C a s e s , Mr Schorer, Mrs Garms and Mr Smith continue to raise with AUSTEL complaints about the quality of the service they are receiving from Telecom.

6. More recently, a number of other persons have come forward with complaints similar to those raised by the C O T C a ses. Those persons include -• Mr Gary Dawson, Dawson's Pest & Weed Control, Rockbank and Maribyrnong, Victoria

• Mr Brian Love, Lovey's Restaurant, Dixons Creek, Victoria

• Mr Ross Plowman, Bentinck Private Hotel, Woodend, Victoria

• Mr Michael Wiegmann, Michael Wiegmann Drafting Service, Jindabyne, New South Wales

• Mr John Mayne, Glen Waters Fish Farm, Glenburn, Victoria

• Mr Peter Davis, Nelson Bay Cranes, Nelson Bay, New South Wales (he is, however, a Telecom MobileNet customer and AUSTEL will be pursuing his complaints separately).

7. AUSTEL also has the names of some 25 persons in the Fortitude Valley area of Brisbane, who claim to have suffered like experiences to those of the C O T C a s e s . Details of those persons have been supplied to Telecom.

3

8. While AUSTEL was acting as an "honest broker" in facilitating settlements between Telecom and the C O T C a s e s , it took the view that the information which it had was sufficient for it to be satisfied that the C O T C a s e s had received from Telecom an inadequate telephone service but it was not essential for AUSTEL's facilitating role to actually quantify in detail the extent of the inadequacies.

9. The position now is, however, different. Notwithstanding the settlements with the C O T C a s e s , problems are alleged to continue. Also, a number of other complainants have emerged and in order for AUSTEL to advance its consideration of the matters it is essential that it gets "hard information" on the extent of the problems experienced not only by the C O T C a s e s , but also the other complainants.

10. To that end, by letter dated 30 June 1993, AUSTEL's General Manager, Consumer Affairs, sought from Telecom certain information and its co-operation in monitoring the services supplied to a number of the complainants.

11. While Telecom has provided some information and undertaken some monitoring, there appears to be reluctance on the part of all involved on Telecom's side to provide full and frank co-operation with AUSTEL's staff in resolving these long standing complaints - complaints that are perceived by at least some of the complainants as but the "tip o f the iceberg" pointing to fundamental problems in Telecom's network.

12. Having regard to the complainants' perception , the continuing problems experienced by the eight persons referred to in Attachment A and to the 25 complainants in the Brisbane area, AUSTEL is concerned to get to the bottom of the problem. While it would prefer to do that in co-operation with Telecom, the necessary co-operation does not appear to be forthcoming.

13. Accordingly, AUSTEL has decided to issue the following directions to Telecom.

Direction pursuant to section 400

14. AUSTEL has reason to believe that Telecom has information and documents of the kind described below that are relevant to the exercise of AUSTEL's function of investigating, pursuant to section 38 of the T elecom m un ication s A ct 1 9 9 1, the C O T C a s e s and other like complaints.

15. Accordingly, pursuant to section 400 of the T elecom m un ication s A c t 1991 AUSTEL directs Telecom to give to AUSTEL the following information and to produce to AUSTEL the following documents relevant to its investigation -(a) details of the performance standards applied by Telecom to each

of the exchanges to which each of the eight persons listed in Attachment A is connected. AUSTEL is particularly interested in obtaining details of standards relating to the power supply for each exchange

O

4

(b) details of the performance over the past 12 months of those exchanges against the standards referred to in sub-paragraph (a) above. Again, AUSTEL is particularly interested in obtaining details of how the power supply to those exchanges matched the standards during peak periods of demand

(c) details of the maintenance practices and procedures that Telecom has established in respect of each of the exchanges together with any records showing whether or not such practices and procedures were observed in those exchanges over the past

12 months

(d) in respect of each of the eight persons named in Attachment A, details of all faults recorded in relation to the service provided to that person. Please provide the details in a chronological format and include all complaints of faults made over the past 12

months, including complaints recorded in Telecom's LEOPARD system, complaints made directly to Telecom's staff, including those nominated by Telecom as a direct contact for the complainant, or any other record of complaints which have been

made to Telecom about those services

(e) in respect of each of the eight persons named in Attachment A, details of the type of exchange to which they are connected and, in particular, whether any of the persons were or are connected to SL switching equipment and, if so, whether any had or have a

PBX multi-line group at the SL stage

(f) in respect of each of the eight persons referred to in Attachment A, details of all faults recorded by Telecom over the past 12 months in respect of the 50 numbers preceding the number or numbers allocated to the person and the 50 numbers subsequent to the number or numbers allocated to the person

(g) all files, correspondence, memoranda, minutes or notes in Telecom's possession relating to any of the eight persons referred to in Attachment A. Without limiting the documents to be produced in that regard AUSTEL requires the production of all

network investigation files relating to the services provided to the persons, relevant exchange files and any files relating to complaints made by those persons to Telecom.

O

5

Direction pursuant to section 46

16. Pursuant to section 46 of the T elecom m un ication s A c t 1991 (which, amongst other things, empowers AUSTEL to give written direction to Telecom in connection with the performance of AUSTEL's function under section 38 of the Act of protecting consumers) AUSTEL directs Telecom to -

(a) implement a business hours program of test calls, generated by Artificial Traffic Equipment at locations remote from the exchanges to which each of the eight persons referred to in Attachment A are connected, to test the numbers in the Ί 0 0 range" of each person's customer line. In the case of the multi-line group serving Golden Messenger, this should include test calls to the “100

range" in which each line resides and, where appropriate, the same procedure should be followed in respect of any other person referred to in Attachment A. No "ghost" lines, ie - unterminated numbers, are to be searched in these customers' groups

(b) provide to AUSTEL a summary of the results of the tests referred to in (a) above together with the material upon which the summary is based

(c) implement in respect of each of the eight persons referred to in Attachment A a month long program of service monitoring at the terminating exchange and provide to AUSTEL a time print out of call traffic to and from the person's service over the period

(d) over the same period install at the premises of each of the eight persons referred to in Attachment A equipment to monitor that person's telephone service, to record details of all incoming and outgoing calls and a time print out of such calls over the period (please note that AUSTEL has each person's agreement to this being done)

(e) provide to AUSTEL reports at the end of each week on the findings of the monitoring programs referred to in sub-paragraphs (c) and (d) together with copies of call traffic print outs

(f) at the completion of the monitoring program provide to AUSTEL a comprehensive report on the results of the monitoring with particular reference to instances of faults of the kind referred to in paragraph 3 above together with the material upon which the report is based.

6

17. Should you require any clarification of what is required of Telecom by the above directions, please contact John MacMahon, General Manager, Consumer Affairs, AUSTEL, on 828 7342. He has been authorised by AUSTEL to negotiate an appropriate time for compliance with the direction. His

instructions are to conclude compliance with the directions as soon as is possible and in any event no later than the end of September 1993. If it would help your compliance with the directions, AUSTEL is prepared to accept delivery of the information and documents it seeks on a progressive basis. If necessary, AUSTEL would be prepared to vary the direction so that there is no misunderstanding by all within Telecom of what is required of it. As I indicated above, AUSTEL's preference is to proceed by way of co-operation but it feels it is necessary to issue the directions to bring home to all in Telecom how seriously it regards these complaints and the need for a speedy resolution of them.

Yours sincerely

Robin C Davey Chairman

cc Mr G Ward Director - Strategy Telstra Corporation Limited

Fax 632 4271

Λ AUSTELAUSTRALIAN TELECOMMUNICATIONS AUTHORITYTS/508124 September 1993Mr John F Rohan Managing Director Vodafone Rty Limited Level 11, Tower A Citadel Building 799 Pacific Highway CHATSWOOD NSW 2067Dear Mr RohanTELECOMMUNICATIONS ACT 1991: SECTION 46 LAW ENFORCEMENT CONSULTATION DIRECTIONOn 15 July 1992 the Minister for Transport and Communications gave to AUSTEL a direction under section 50 of the T elecom m unications A c t 1991 (the Act) relating to the law enforcement consultation principles in carrier licence conditions. A copy of the Minister's Direction forms Attachment A to this letter.Since receiving the direction, AUSTEL has -• maintained a Law Enforcement Advisory Committee with membership and functions in terms of paragraphs 1 ,2 and 3 of the Minister's Direction• established and maintained a New Technology Sub Committee subordinate to and reporting to the Committee in terms of paragraph 5 of the Minister's Direction• sought the views of law enforcement agencies in each jurisdiction on which Commonwealth, State and Territory offices and agencies may require help from the licensees under clause 3.5 of the T elecom m un ication s (G eneral T elecom m unications L icen ces) D eclaration (No 2 ) o f 1991 as required by paragraph 6 of the Minister's Direction.As discussed and agreed in the Committee, AUSTEL shall from time to time and having regard to the circumstances of the particular case to comply with paragraph 7 of the Minister's Direction, determine principles to a ssess what help is reasonably necessary under clause 3.5 of the Declaration and establish appropriate procedures for solving disagreements between a licensee, on the one hand, and the Commonwealth, State or Territory agencies, on the other, and on the charge of the help provided by the licensee having regard to the circumstances of the particular case.On 5 August 1993, AUSTEL, pursuant to the Minister's Direction to AUSTEL, issued a direction to both Optus and Telecom, requiring them to consult with5 QUEENS ROAD. MELBOURNE. VICTORIA POSTAL: P.O. BOX 7441. ST KILDA RD. MELBOURNE. VICTORIA. 1004 TELEPHONE: (03) 828 7300 FACSIMILE: (0.3) 820 3021

2

and give help to the agencies, and comply with principles to be established by AUSTEL from time to time for assessing what help is reasonably necessary. (Your company had the opportunity to comment on the direction through LEAC membership access.)

The Minister intends that a similar direction be given to your company. AUSTEL is able to determine this direction under the provisions of the Act, having regard to the requirement of the T elecom m unications (Public Mobile L icen ces) D eclaration (No 2 ) o f th e 1991.

Direction

Pursuant to section 46 of the T elecom m un ication s A c t 1991 which, amongst other things, empowers AUSTEL to give written directions to carriers in connection with the performance of AUSTEL's licensing functions, and having regard for the requirements of clauses 8.3 to 8.5 of the T elecom m unications

(Public Mobile L icen ses) D eclaration (No 2 ) o f 1991, AUSTEL directs Vodafone Pty Limited to -• consult with Commonwealth, State and Territory law enforcement agencies about its proposals to develop the new technologies in

its telecommunications activities through the vehicle of the New Technology Sub Committee of AUSTEL's Law Enforcement Advisory Committee

• give to the agencies specified in Attachment B to this letter such help as is reasonably necessary for any of the following purposes -- enforcing the criminal law and laws imposing pecuniary penalties

- protection of the public revenues

- safeguarding the national security

• comply with principles to be established by AUSTEL from time to time for assessing what help is reasonably necessary, and any procedures established by AUSTEL from time to time for resolving disagreements between Vodafone, on the one hand, and the

Commonwealth, State or Territory on the other, for the help to be provided by Vodafone.

Yours sincerely

Robin C Davey Chairman

O

ATTACHMENT A

COMMONWEALTH C T AUSTRALIA

TELECOMMUNICATIONS ACT 1991

DIRECTION UNDER SECTION 50

I, 505 COLLINS, Minister of State for Transport ar.d Communications, pursuant to section 50(1) of the Telecommunications Act 1991. hereby give to the Australian Telecommunications Authority (AUSTEL) the following direction relating to the law enforcement consultation principles in telecommunications carrier licence conditions.

1. AUSTEL shall maintain a Law Enforcement Advisory Committee (LEA.C) .

2. Membership of the committee shall* include representatives as nominated by the following agencies:

(i) AUSTEL

(ii) Attorney-General's Department

(iii) Australian PecerSl Police

(iv) Australian Police Ministers 1 Council

(v) Australian Security Intelligence Organization

(Vi) Defence Signals Directorate

(vii) Department of Transport and Communications

(▼iii) National Crime Authority

(ix) Licensed telecommunications carriers.

3. The functions of the Committee are to include:

(a) to advise AUSTEL on law enforcement and security issues;

(b) to provide a forum for the exchange of views on telecommunications related law enforcement and security issues;

(c) to provide a forum for advice to government on law enforcement and security issues relating to telecommunications; and

(d) to facilitate coordination of law enforcement and security aspects of developments in the telecommunications network".

4. In accordance with sub-clause 3.3 of rhe Telecommunications (General Telecommunications Licences) Declaration (Mo. 2) of 1591, AUSTZL shall direct the licensees to consult with Commonwealth, State and Territory

law enforcement agencies about licensees' proposals to cevelco and use new technology in their telecom-tunic at ions activities. In its direction to licensees, AUSTZL rust take proper account of the licensees' ccraercial interests curing the consultative process, and rust require that only

agencies with an interest in interception need to be consulted.

5. In accordance with sub-clause 3.4 or the general telecommunications licence, AUSTZL shall maintain a working group, which will be subordinate to and report to the LZAC, for the purpose of consulting with the Commonwealth, State

and Territory law enforcement agencies about licensees' proposals to develop- or introduce new technology in their telecommunications activities.

5. .AUSTZL shall seek the views of law enforcement agencies of each jurisdiction to specify which Commonwealth, State and Territory officers and agencies may require help from the licensees under sub-clause 3.5 of the general telecommunications licence.

7. AUSTZL shall establish appropriate principles to assess what help is reasonably necessary under sub-clause 3.5 of the general telecommunications licence and shall also

establish appropriate procedures for resolving disagreement between the licensee and the Commonwealth, State or Territory on the charge for the help provided by the licensee.

8. The calculation of charges must ensure that the licensee neither profits from nor bears the costs of helping to enforce the criminal law and laws imposing pecf-i-ary penalties, protecting the public revenue or

safeguarding national security.

9. AUSTZL shall seek my views as Minister for Transport and Communications and, through the Department of Transport and Communications, the views of the Attorney-General in any matters with significant law enforcement or national

security policy implications.

Minister oi^Stste for Transport and Communications

O

ATTACHMENTB

LIST OF SPECIFIED OFFICERS AND AUTHORITIES

State and Territory police forces

Australia Security and Intelligence Organisation

National Crime Authority

Australian Federal Police

New South Wales Crime Commission

Oueensland Criminal Justice Commissioner

New South Wales Independent Commission against Corruption

Australian Taxation Office

Australian Customs Service

Australian Securities Commission

Commonwealth departments and authorities with significant criminal law enforcement or revenue protection responsibilities

Australian Reports and Analysis Centre

State and Territory revenue authorities

Λ

AUSTEL

AUSTRALIAN TELECOMMUNICATIONS AUTHORITY

93/261

24 September 1993

Mr J R Holmes Corporate Secretary Telstra Corporation Limited 41/242 Exhibition Street

MELBOURNE VIC 3000

Dear Mr Holmes

VICON

DIRECTION UNDER SECTION 46

AUSTEL has decided to conduct a formal investigation of Optus' complaint, the subject of earlier correspondence with your Mr Hambleton, alleging that Telecom is in breach of clause 2.4 of the T elecom m unications (Public Mobile L icen ces) D eclaration (No 1) o f 1992. Which provides that -

"A lic e n se e that installs a n d o p e r a te s an A M P S n etw ork m u st n o t u se its installation, or o p era te it, in a w a y that cou ld unfairly red u ce the s c o p e for com petition b e tw e e n public m obile carriers. “

Optus alleges, in effect, that Telstra as the licensee which operates the AMPS network introduced VICON as a new voice mail service on the network in a manner which has unfairly reduced the scope for Optus to compete with Telstra because Telstra failed to give to Optus sufficient notice of, or technical information relating to, the VICON service.

As you would be aware AUSTEL has sought from Telstra written comment on Optus' allegations. AUSTEL staff have also attended a demonstration of the VICON service. The information provided by Telstra to date has not, however, enabled AUSTEL to form an opinion whether it should take any, and if so what, action pursuant to Optus' complaint.

Accordingly, as indicated above AUSTEL has decided to conduct a formal investigation pursuant to section 335 of the T elecom m unications A ct 1991.

Having regard to the nature of Optus' complaint, AUSTEL is of the opinion that it would be inappropriate for Telstra to market or promote its VICON service pending AUSTEL's completion of its investigation. Nor should any additional customers be connected to the service until such time as AUSTEL has completed its investigation. Accordingly, pursuant to section 46 of the

T elecom m unications A ct 1991 (which amongst other things, empowers

5 QUEENS ROAD. MELBOURNE. VICTORIA POSTAL: P.O. BOX 7443. ST HILDA RD. MELBOURNE. VICTORIA. 3004 TELEPHONE: (03) 828 7300 FACSIMILE: (03) 820 3021

o

2

AUSTEL to give written directions to Telstra in connection with the performance of AUSTEL's function to promote competition and of its function of enforcing conditions of licences) AUSTEL directs Telstra to cease -

until such time as AUSTEL has completed its investigation.

AUSTEL for its part will do all that it can to complete its investigation as soon as possible and in any event aims to do that within one month from the date of this letter. Of course, whether it can achieve that target will depend very much on Telstra's cooperation with AUSTEL in its investigation. AUSTEL's contact for the purposes of its investigation is Mr Ian Slattery, General Manager, Competition Branch (phone (02) 828 7355 - fax (03) 828 7450).

Yours sincerely

actively marketing or promoting its VICON service;

cease connecting new customers to its VICON service;

Robin C Davey Chairman

cc: Mr Graeme B Ward Director - Strategy, Telstra

AUSTEL

AUSTRALIAN TELECOMMUNICATIONS AUTHORITY

93/503

29 April 1994

Mr Frank Blount Chief Executive Officer Telstra Corporation Limited

Fax 02 264 2044

Dear Mr Blount

MOBILES

REVOCATION OF DIRECTION AND FURTHER DIRECTION

On 14 July 1993 AUSTEL issued a direction requiring Telstra to comply with sections 183 and 197 of the T elecom m un ication s A c t 1991 (the Act) on the basis that it was "in a position to dom inate" the public mobile telecommunications market.

On 2 March 1994 AUSTEL published the final findings of its review of the 14 July 1993 direction (the Review). There were four attachments to the Review which identified certain safeguards (the Safeguards). In the Review AUSTEL concluded that if Telstra were to comply with the Safeguards AUSTEL would

revoke its direction of 14 July 1993.

As foreshadowed in the Review, AUSTEL has developed and adopted the attached Compliance Manual for the purpose of establishing a procedure by which it will monitor Telstra's ongoing compliance with the Safeguards. Also as foreshadowed in the Review, AUSTEL will establish a procedure by which it will

monitor the level of competition in the public mobile telecommunications market and the extent of any market power held by Telstra.

The Compliance Manual sets out those matters about which AUSTEL has determined it needed to be satisfied before it would revoke its direction of 14 July 1993, together with the requirement which AUSTEL has determined should be satisfied on a continuing basis.

In Attachment 3 to the Review, AUSTEL identified as part of the AMPS Services Development Safeguard, its requirements in relation to the Vicon issues. It is satisfied that the approach to the Vicon issue outlined in sub­

paragraph (a) of Attachment 3 to the Compliance Manual will provide a resolution of this issue in a manner which will not render the safeguard ineffective. In these circumstances and having regard to the other matters

5 QUEENS ROAD. MELBOURNE. VICTORIA POSTAL: P.O. BOX 7443. ST KILDA RD. MELBOURNE. VICTORIA. 3004 TELEPHONE: (03) 828 7300 FACSIMILE: (03) 820 3021

2

identified in the attachments to the Compliance Manual, AUSTEL is now satisfied that Telstra has complied with the Safeguards.

Revocation of a Direction

AUSTEL hereby revokes its direction of 14 July 1993.

Further Direction

Pursuant to section 46 of the Act, AUSTEL directs that Telstra complies with each of the "on-going requirements" in Attachments 1 to 4 of the attached Compliance Manual.

This direction shall remain in operation and effect until revoked or varied by AUSTEL as foreshadowed in the Compliance Manual.

AUSTEL will continue to monitor Telstra's adherence to the Safeguards and the Compliance Manual and proposes to deal with any alleged breach of the requirements of the Compliance Manual as foreshadowed in paragraph 5 of the Compliance Manual.

Yours sincerely

Robin C Davey Chairman

APPENDIX 4

HUMAN RESOURCE MANAGEMENT SUMMARY

An ongoing review of AUSTEL’s organisation has resulted in a revised structure. This, combined with a relatively high staff turnover, has resulted in extensive recruitment activities being undertaken throughout the year.

In 1993-94 AUSTEL recmited and employed forty-six Public Service Act staff and the Minister appointed Dr Bob Horton as a Member on 25 September 1993 and Mr Neil Tuckwell as a Member on 8 November 1993. Mr Tuckwell was appointed as acting Chairman from 6 June 1994.

Staff levels, profiles and methods of commencement and cessation are shown in the following tables. Profiles include four positions which are funded by the Carriers to support Public Education Campaigns.

TABLE A4-1

STAFF PROFILE CHART 1 9 9 3 - 9 4

CLASSIFICATION AS AT 3 0 /6 /9 3

Chairman 1

Members 1

Senior Executive Service Band 3 1

Senior Executive Service Band 2 1

Senior Executive Service Band 1 10

Senior Professional Officer Grade A (E) Senior Officer Grade A 1

Senior Professional Officer Grade B 3

Senior Officer Grade B 14

Senior Information Technology Officer Grade B 1 Senior Professional Officer Grade C 1

Senior Officer Grade C 20

Senior Information Technology Officer Grade C 2 Public Affairs Officer Grade 3 1

Technical Officer Level 4 7

AS AT 30/6/94

1

1 1 0 7 6 1 4 14

1 1

22 2 1 6

O

A Administrative Service Officer Class 6 8 14

Administrative Service Officer Class 6 (part-time) 0 1

Administrative Service Officer Class 5 8 8

Administrative Service Officer Class 4 14 11

Professional Officer Class 1 1 1

Administrative Service Officer Class 3 11 14

Administrative Service Officer Class 2 15 11

Administrative Service Officer Class 2 (part-time) 0 3

Administrative Service Officer Class 1 2 1

TOTAL OPERATIVE STAFF 130 132

Paid In operative Staff Senior Officer Grade B 1 0

Administrative Service Officer Class 3 2 0

Administrative Service Officer Class 2 1 1

Unpaid In operative Staff Senior Executive Service Band 2 1 1

Senior Officer Grade B 0 1

Administrative Service Officer Class 6 2 0

Administrative Service Officer Class 4 0 1

Administrative Service Officer Class 3 0 1

Term Contract P osition s C easing 3 0 /6 /9 3 Senior Professional Officer Grade B 1 0

Senior Officer Grade C 1 0 Ί

Administrative Service Officer Class 2 2 0

Administrative Service Officer Class 1 1 0

Associate Members 3 3

TOTAL STAFFING PROFILE 145 140

TABLE A4-2

METHOD OF COMMENCEMENT 1 9 9 3 - 94

HOLDERS OF PUBLIC OFFICE

Dr. Bob Horton was appointed as a Member of AUSTEL on 25 September 1993· Mr Neil Tuckwell was appointed as a Member of AUSTEL on 8 November 1993-

PUBLIC SERVICE ACT STAFF

Actual Appointment Promotion T ransfer Temporary Temporary TOTAL Classification Transfer Employment

M F M P M F M F M F M F

SO and equivalent 1 1 2 3 6 1

ASO and equivalent 1 3 1 1

5

28 8 31

TOTAL 2 4 0 0 1 0 3 0 8 28 14 32

TABLE A4-3

METHOD OF CESSATION 1 9 9 3 - 9 4

HOLDERS OF PUBLIC OFFICE

Mr Robin Davey effectively completed his appointment as Chairman of AUSTEL on 3 June 1994. Ms Johanna Plante resigned as a Member of AUSTEL on 24 September 1993.

PUBLIC SERVICE ACT STAFF

Actual A ppointm ent Prom otion T ransfer T em porary T em porary TOTAL

Classification T ransfer E m ploym ent lllllllllll

M F M F M F M F M F M F

SES 1 1 1 2 1

SO and equivalent 1 5 1 2 1 7 3

ASO and equivalant 1 2 1 11 1 1 1 3 17 6 32

2 18 15 36 TOTAL 2 3 0 1 5

P e rfo rm a n c e A p p r a is a l a n d P erfo rm a n ce B a se d P a y

The Public Service Commission has formally endorsed AUSTEL’s Performance Appraisal Program and all SES and SOs are participating in the program.

Performance Appraisal ratings and Performance Based Pay information is as follows.

TABLE A 4.4

TOTAL NUMBER OF STAFF ELIGIBLE AND AGGREGATE AM OUNT PAID FOR EACH CLASSIFICATION SES S e n io r O ffic e r & E q u iv a le n t

A B C TOTAL

M F M F M F M F M F

No. of staff eligible 9 2 8 0 16 3 18 6 51 11

Total amount paid $56,860 $30,850 $74,844 $32,434 $194,988

TABLE A4.5

AM OUNT OF PERFORMANCE BASED PAY DETERMINED FOR EACH ELIGIBLE RATING

1 & 2 3 4 5

Senior Executive Service Band 3 0 $7500 $7500 $7500

Senior Executive Service Bands 0 $6250 $6250 $6250

Senior Executive Service Band 1 0 $4710 $5710 $5710

Senior Officer Grades A & B 0 $3430 $4570 $5710

Senior Officer Grace C 0 $1210 $1610 $2015

TABLE A4.6

NUMBER OF STAFF AT EACH RATING LEVEL

1 & 2 3 4

Senior Executive Service 10

Senior Officer Grade A & Equivalent 8

Senior Officer Grade B & Equivalent 12 7

Senior Officer Grade C & Equivalent 13 11

5

In accordance with prescribed reporting arrangements, where there are less than three eligible individuals in any of the above categories the corresponding information has been aggregated with the next category.

SENIOR EXECUTIVE SERVICE

No. o f 10 γ

in d iv id u a ls 8 --

r e c e iv in g 6 --

p e r f o r m a n c e 4 --

p a y m e n t in 2 --

r a n g e 0 --

0-20% 21­

40%

41- 61- 81­

60% 80% 100%

P e r f o r m a n c e Pay re c e iv e d a s p e r c e n t a g e o f m axim um

p e r m is s ib le p e r f o r m a n c e p ay

O

SENIOR OFFICER SERVICE

No. of 50 j

individuals 40 receiving 30

performance 20 payment in 10 range 0

0 - 20 % 21­

40%

41­ 60%

61­ 80%

81­ 100%

Performance Pay received as percentage of maximum permissible performance pay

P o st-S e p a ra tio n E m ploym en t

A number of post-separation employment cases were processed under the Guidelines on Official Conduct relating to the acceptance of business appointments on retirement or resignation for the year ended 30 June 1994.

S ta ff D evelo p m en t

We encourage staff to maximise their potential and their contribution to operational goals by fostering an environment where staff have access to training and development opportunities to enable them to develop and increase their skill levels.

During the year we actively promoted awareness of the strategic linkage between human resource development and organisation performance. Two key areas of focus were Policy Formulation and Advice and Written Communication Skills.

We have been assisted in identifying and having access to appropriate training courses through membership of the Victorian EEO and Staff Development Secretariat. The services offered by this Secretariat enabled AUSTEL to have ready access to Australian Public Service training and development areas at a moderate cost.

The net eligible expenditure on staff training and development was $119 784.97.

Twenty-one staff were granted approval to undertake courses of study under

Studybank. One staff member was seconded to industry for personal and technical skill development.

During the year, 60 staff attended 255 equivalent days of formal training.

C on su ltative P ro c e sse s

The AUSTEL Consultative Council, comprising representatives from AUSTEL and the Public Sector Union (PSU), has been established to achieve agreement on matters of Industrial Democracy, Occupational Health and Safety (OH&S) and Equal Employment Opportunity (EEO).

During the year, the arrangements for subcommittees for these matters were reviewed. Streamlined arrangements for addressing issues arising in these areas will be introduced in 1994-95.

In d u stria l D em ocracy

In consultation with the PSU, and in line with Commonwealth legislation, AUSTEL has an Industrial Democracy Agreement which clearly outlines our commitment to the following key principles of industrial democracy:

• a consultative process providing a fomm to discuss and resolve issues of mutual interest to management and staff through their unions

• to pursue actively a participative decision-making process on issues of mutual interest.

Objectives of our Industrial Democracy Agreement are to:

• promote the principles and practices of industrial democracy

• provide a forum for consultation and open discussion of issues important to management and unions, and to aim to resolve differences on those matters in a mutually acceptable manner

• foster mutual understanding of management, staff and union issues

• facilitate the timely two-way flow of information between management, staff and

O

unions

• provide a safe and stimulating working environment and improved arrangements for staff development

• promote good relations with unions.

E q u a l E m ploym en t O p p o rtu n ity

We are committed to equal opportunity and fair treatment for all staff and for those seeking employment within AUSTEL. Table A4-7 sets out EEO groupings in salary categories, as required by the Guidelines for reporting on EEO Programs within Departmental Annual Reports.

TABLE A4-7

EEO SALARY G RO UPING S FULL-TIM E STAFF AS AT 30 JUNE 1994

SALARY MALES CEMALES TOTAL

Below $23 748 ......... a ... 1 1

$23 749 to $26 907 1 15 Γ6

$26 968 to $29 894 2 13 15

$29 895 to $33 519 3 8 11

$33 520 to $36 511 4 5 9

$36 512 to $42 719 12 9 21

$42 720 to $47 814 21 4 25

$47 815 to $56 063 18 3 21

$56 064 to $59 183 7 0 7

Above $59 183 io 1 11

TOTAL 78 59 137

i n u i c : m e a u o v e n g u re s g o not in c lu d e the th re e Associate M em bers.

Recruitment, staff selection, staff development and training activities are conducted

in accordance with EEO principles.

M em bers o f D e sig n a te d G rou ps

A total of 103 staff have provided AUSTEL with EEO data. This data was provided on a voluntary basis and is summarised below:

• women - 45

• staff who have identified themselves as having non-English-speaking background - 16

• people with disabilities - 4.

O ccu p a tio n a l H ealth a n d Safety

We have maintained our commitment to promoting and maintaining the health, safety and well-being of all staff. All furniture and fittings and desktop computing equipment comply with accepted industry ergonomic design principles.

The AUSTEL OH&S Subcommittee undertakes investigation and develops plans to ensure that a healthy and safe working environment is promoted and maintained.

AUSTEL subscribes to the Employee Assistance Program (EAP), which is available to all staff. The EAP aims to address any personal problems which may affect the work performance, health and safety of staff. All counselling conducted under EAP is confidential and free to staff.

No accidents or dangerous occurrences were notified under Section 68 of the Occupational Health and Safety (Commonwealth Employment) Act 1991.

APPENDIX 5

FINANCIAL STATEMENTS

CONTENTS

In d ep en d en t audit report

Statem ent b y A cting Chairm an and full-tim e Member

O perating statem en t

Statem ent o f fin an cial p o sitio n as at 30 June 1994

Statem ent o f cash flo w s for year en d ed 30 Ju ne 1994

N otes to and form in g part o f Financial Statem ents

AUSTRALIAN NATIONAL AUDIT OFFICE

303 Collins St

Melbourne Vic 3000

Our ref:

AUSTRALIAN TELECOMMUNICATIONS AUTHORITY (AUSTEL) INDEPENDENT AUDIT REPORT

To the Minister for Communications and the Arts

Scope

I have audited the financial statements of Australian Telecommunications Authority for the year ended 30 June 1994. The financial statements comprise of:

. Statement of Financial Position . Operating Statement . Statement of Cash Flow . Statement by Members, and . Notes to and Forming Part of the Financial Statements.

The members of the governing body are responsible for the preparation and presentation of the financial statements and the information contained therein. I have conducted an independent audit of the financial statements in order to express an opinion on them to the Minister for Communications and the Arts, and Minister for Tourism.

The audit has been conducted in accordance with Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards, to provide reasonable assurance as to whether the financial statements are free of material misstatement. Audit procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial statements, and the evaluation of accounting policies and significant accounting estimates. These procedures have been undertaken to form an opinion whether, in all material respects, the financial statements are presented fairly in accordance with Australian accounting concepts and standards and statutory requirements so as to present a view which is consistent with my understanding of the company’s financial position, the results of its operations and its cash flows.

The audit opinion expressed in this report has been formed on the above basis.

Box 1715P Melbourne Victoria 3001 Telephone (03) 617 4444 Facsimile (03) 629 1424

Audit Opinion

In accordance with sub-section 63M(2) of the Audit Act 1901, I know report that the statements are in agreement with the accounts and records of the Authority and in my opinion:

(i)

(ii)

(iii)

(iv)

the statements are based on proper accounts and records

the statements show fairly in accordance with Statements of Accounting Concepts and applicable Accounting Standards the financial transactions and cash flows for the year ended 30 June 1994 and the state of affairs of the Authority at that date

the receipt, expenditure and investment of moneys, and the acquisition and disposal of assets, by the Authority during the year have been in accordance with the Audit Act 1901, and

the statements are in accordance with the Guidelines for Financial Statements of Public Authorities and Commercial Activities.

T J Loughnan Executive Director MELBOURNE

4 October 1994

AUSTRALIAN TELECOMMUNICATIONS AUTHORITY

FINANCIAL STATEMENTS FOR YEAR ENDED 30 JUNE 1994

STATEMENT

In our opinion, the accompanying financial statements of the Australian Telecommunications Authority (AUSTEL) for the year ended 30 June 1994, consisting of:

Operating Statement; Statement of Financial Position; Statement of Cash Rows; Notes to and forming part of Financial Statements;

have been properly drawn up so as to show fairly the operations of AUSTEL for the year ended 30 June 1994 and the state of its affairs as at that date.

These statements have been prepared according to the Guidelines for Financial Statements of Public Authorities and Commercial Activities.

Neil Tuckwell Acting Chairman 3 October 1994

Bob Horton Member 3 October 1994

AUSTRALIAN TELECOMMUNICATIONS AUTHORITY

OPERATING STATEMENT FOR YEAR ENDED 30 JUNE 1994

1994 1993

N o te S S S S

COST OF SERVICES

O p eratin g e x p e n s e s

Salaries and related expenses 2 7,034,736 7,770,509

Administrative expenses 3 3,171,435 3,743,985

Properly operating expenses 4 1,665,623 1,694,499

Depreciation of property, plant 5 886,289 908,956

and equipment

T otal o p e r a tin g e x p e n s e s

O p era tin g r e v e n u e s from

In d ep en d en t s o u r c e s

Interest on bank deposits Sales and fees Other revenue

Total o p e r a tin g r e v e n u e s from

In d ep en d en t s o u r c e s

12,758,083 14,117,949

39,255 58,265

14,769 11,331

19,064

73,088

13,433

83,029

N et c o s t o f s e r v i c e s b e fo r e 1 2 ,6 8 4 ,9 9 5 14,034,920

A bn orm al Hem

Abnormal Item 6

N et c o s t o f s e r v ic e s

REVENUE FROM GOVERNMENT

Parliamentary appropriations received

T otal r e v e n u e from g o v e r n m e n t

C h a n g e In n et a s s e t s resu H In g from

o p e r a tio n s a n d a b n o r m a l H em s

OUTSIDE INTERESTS AND TRANSFERS

Change in net assets resulting from operations and abnormal items

Accumulated results of operations at beginning of financial year

Total a v a ila b le for ap p r o p r ia tio n

A ccu m u la ted r e su lts o f o p e r a tio n s at

e n d of fin an cial y ea r

269,109

12,415,886

12.994.000

12.994.000

578.114

578.114

482,201

1.060.315

1.060.315

25,519

14,009,401

12,226,000

12,226,000

(1.783.401)

(1.783.401)

2,265,602

482.201

482.201

AUSTRALIAN TELECOMMUNICATIONS AUTHORITY

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 1994

1994 1993

N o te f S S S

CURRENT A SSETS

Cash 7 1,078,473 145,188

Receivables 89,605 9,207

Other 8 181,910 163,178

Total current a s s e t s 1,349,988 317,573

NON-CURRENT A S S E T S

Property, plant and equipment 9 1,782,987 2,542,986

Total non-current a s s e t s 1,782,987 2,542.986

Total a s s e ts 3,132,975 2,860,559

CURRENT LIABILITIES

Creditors 10 134,212 393,907

Provisions 11 860,515 904,417

Total current liab ilities 994,727 1,298,324

NON-CURRENT LIABILITIES

Provisions 11 1,077,933 1.080,034

Total non-current lia b ilitie s 1,077,933 1,080,034

Total liabilities 2,072,660 2,378,358

Net a s s e t s 1,060,315 482,201

EQUITY

Accumulated results of operations 1,060,315 482,201

Total eq u ity 1,060,315 482,201

AUSTRALIAN TELECOMM UNICATIONS AUTHORITY

STATEM ENT OF C A SH FLOW S FOR YEAR ENDED 30 JU NE 1 9 9 4

" 1994 1993

Note $ S S S

AUSTRALIAN TELECOMMUNICATIONS AUTHORITY

STATEMENT OF CASH FLOWS FOR YEAR ENDED 30 JUNE 1994

1994 1993

Note $ S t f

C A SH FLO W S FROM OPERATING

ACTIVITIES

Inflows:

Interest received Sales and fees Other revenue Refund of Previous Year Expenditure

Outflows:

Salaries and related payments Administrative expenses Property operating expenses

N et c a s h u s e d b y o p e r a tin g a c tiv itie s

C ASH FLO W S FROM INVESTING

ACTIVITIES

Outflows:

Purchase of property, plant and equipment

N et c a s h u s e d b y I n v e stin g a c tiv itie s

C ASH FLOW S FROM GOVERNM ENT

Inflows:

Recurrent appropriation

N et c a s h p r o v id e d b y g o v e r n m e n t

N et in c r e a s e /(d e c r e a s e ) In c a s h h eld

C a sh at b e g in n in g of rep ortin g p e r io d

C a sh at e n d o f rep ortin g p eriod

37,301 65,395

18,014 5,181

22,554 13,433

6 269,109 _____________

346,978 84,009

12

7,386,655 3,229,619 1,664,966

12,281,240

7.232,849 3,458,965 1,641,218

12,333,032

11,934,262 12,249,023

126.453

126.453

12.994.000

12.994.000

933,285

145,188

1,078,473

162.359

162.359

12,226,000

12,226,000

( 185,382)

330,570

145,188

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Statement of Accounting Policies

(a) The financial statements have been prepared in accordance with the Guidelines for Financial Statements of Public Authorities and Commercial Activities approved by the Minister for Finance, and on an historical cost basis.

(b) The accounts have been prepared in accordance with the concept of accrual accounting. AUSTEL is funded through an annual appropriation and strict cash limits apply to expenditure.

(c) Non-current assets are valued at historic cost and the current asset threshold is $2,000. Deprecation is charged (on a straight line basis) at rates which provide for the assets to be written down from cost to their estimated residual values over the anticipated period of their economic useful life. The cost of improvements to leasehold premises are amortised on a straight line basis over the unexpired period of the lease or the estimated useful life of the improvements, whichever is the shorter. Depreciation is commenced from the date of acquisition of a depreciated asset.

(d) Comparative figures are included.

(e) Bad debts are written off against revenue as they become due. Actual bad debts written off in the 1993/94 financial year were $350 (1992/93 - $216)

Salaries and Related Expenses

(a) This item comprises:

1994 1993

$ $

Salaries and allowances 6,201,591 6,342,784

Employer superannuation contribution 724,984 794,708

Productivity superannuation contribution 154,164 151,341

Employee benefits-Annual leave/leave loading (43,668) 170,140

Employee benefits-Long service leave (2,335) 311,536

7,034,736 7,770,509

(b) AUSTEL is an approved authority for the purposes of the Superannuation Acts This entitles members and staff of the Authority to contribute for, and receive, superannuation benefits in accordance with the Commonwealth Superannuation Scheme as embodied in the Superannuation Acts 1922, 1976 and 1990.

The employer share of all pensions and other benefits payable under the Superannuation Acts is met by the Commonwealth. AUSTEL is required to reimburse the Commonwealth for the cost of the employer's share of any benefit that becomes payable under the Acts to, or in respect of, its members and employees. AUSTEL discharges the liability by periodic payments to the Commonwealth, calculated in 1993/94, at 10.7% and 18.7% of the salaries for superannuation purposes of eligible members and employees respectively for the PSS and CSS, as advised by the Commonwealth. The rate applied to the PSS and CSS in 1992/93 were 11.2% and 20% respectively.

(c) AUSTEL also contributes to members and employees 3% productivity superannuation benefit under the Superannuation Acts.

(d) Employee benefits are based on the decrease in the provisions for leave benefits at 30 June 1994.

Administrative Expenses

This item consists of:

1994 1993

$ $

Travel costs 531,496 915,241

Office supplies and services 316,682 284,081

Library services 60,570 94,802

Computing services 364,906 456,351

Postage and telephone services 367,673 392,521

Promotion 204,531 511,221

Consultants and legal costs 773,341 266,651

Staff related expenses 202,950 458,256

Staff development 116,825 196,925

Operational expenses Loss on disposal or write-off of property, plant and 232,298 165,655 equipment 163 2281

3,171,435 3,743,985

4 .

5.

AUSTEL's Fringe Benefit Tax liability for the year ended 31 March 1994 of $72,072 (1993 - $73,323). No other taxation was paid by AUSTEL.

Property Operating Expenses

This item includes the payment of rent for AUSTEL premises, associated cleaning costs, parking fees, other outgoings, electricity and minor maintenance costs. Expenditure on operating lease rental totalled $1,043,798 (1993 -$1,043,611).

Depreciation of property, plant and equipment

Non-current assets, consisting of office equipment, computer equipment, furniture and fittings and improvements to leasehold premises are reported at cost less depreciation. During the 1993/94 financial year, AUSTEL received $2100 for proceeds from the disposal of non current assets.

The annual rates of depreciation in use are generally:

Office Equipment 20%

Computer Equipment 25%

Furniture and Fittings 10%

Depreciation for the year consisted of:

Office equipment Computer equipment Furniture and fittings

Improvements to leasehold premises

1994 1993

$ $

59,483 57,885

488,301 499,187 37,579 37,530

300,926 314,354 886,289 908,956

6 . Abnormal Item

During the financial year, AUSTEL received a refund of expenditure from the 1991/92 financial year of $269,109. This was for an econometric modelling package subsequently found to be unsuitable for AUSTEL requirements. An amount of $25,519 was written back as an Abnormal item in the 1992/93 financial year for assets relocated during that years

stocktake.

7. Cash

1994 1993

$ $

Cash at bank 1,057,473 127,188

Cash on hand 21,000 18,000

1,078,473 145,188

Other Current Assets

1994 1993

$ $

Prepaid expenses 178,633 161,855

Accrued Interest 3,277 1,323

181,910 163,178

Property, Plant and Equipment

Details comprising the net reported cost at 30 June 1994 are as follows:

1994 1993

$ $

Office Equipment

Cost 335,307 298,574

Accumulated Depreciation 197,763 139,402

Written Down Value 137,544 159,172

Computer Equipment

Cost 2,117,462 2,040,549

Accumulated Depreciation 1.567,603 1,090.824

Written Down Value 549,859 949,725

Furniture and Fittings

Cost 375,792 375,792

Accumulated Depreciation 140,038 102,459

Written Down Value 235,754 273,333

Improvements to Leasehold Premises

Cost 1,932,469 1,932,469

Accumulated Depreciation 1,072,639 771,713

Written Down Value 859,830 1,160,756

Totals Cost 4,761,030 4,647,384

Accumulated Depreciation 2,978,043 2,104.398

Written Down Value 1,782,987 2,542,986

10. Creditors

Creditors at 30 June 1994 were:

1994 1993

$ $

Salaries and related expenses 25,132 303,850

Administrative expenses 104,068 85,788

Property operating expenses 5,012 4,269

134,212 393,907

11 Provisions

Provisions at 30 June 1994 comprise:

1994 1993

$ $

Annual leave and leave loading 740,745 784,413

Long service leave - current 119,770 120,004

860,515 904,417

Long service leave - non-current 1,077,933 1,080,034

Annual Leave

The provision is calculated on the basis of actual entitlements as at 30 June 1994,

Long Service Leave

This provision is AUSTEL’s estimated liability at 30 June 1994 for the long service leave entitlements of its members and employees. The estimate is based on a qualifying period of ten years eligible service, including previous eligible public sector service, and is accrued from the commencement of the sixth year of such eligible service. 10% (1993 - 10%) is estimated to be current.

12. Reconciliation of change In net assets resulting from operations and abnormal Items with net cash flows from operating activities

1994 19$

$ $ $ $

C h a n g e in n e t a s s e ts re s u ltin g fro m o p e ra tio n s a n d a b n o rm a l ite m s 578,114 (1,783,

Depreciation of non-current assets Amortisation of leasehold 585,364 594,602

improvements 300,926 314,354

lncrease/(decrease) provision for annual leave lncreased/(decrease) provision for

(43,668) 170,140

long service leave (2,335) 311,536

DecreaseZ(increase) in debtors (80,399) (6,150)

Government revenues (12,994,000) (12,226,000)

Decrease/(increase) in prepaid (16,778) 345,827

expenses Decrease^increase) in interest due (1,954) 7,130

Loss on disposal or write-off of property, plant and equipment 163 2,281

Write Back of Assets IncreaseZ(decrease) in accrued

0 (25,519)

expenses (259.695) 46.177

N e t c a s h flo w s fro m o p e ra tin g a c tiv itie s (11,934,262) (12,249^1

13 Lease Commitments

Commitments for lease payments exist under a current operating lease agreement in respect of AUSTEL’s premises: 1994 1993

$ $

Not later than 1 year 1,471,032 1,435,723

Later than 1 year and not later than 2 years 1,396,746 1,323,744

Later than 2 years and not later than 5 years 1,336,459 2,569,008

Later than 5 years - .

4,204,237 5,328,475

14. Segment Accounting

AUSTEL is a Government regulatory authority operating predominantly in the telecommunications industry within Australia.

15. Contingent Liabilities

During the 1993/94 financial year, two significant claims were lodged against AUSTEL, and it received $958,000 in additional funding from Department of Finance to cover legal and associated costs. At the time of preparation of the financial statements it is expected that AUSTEL will return any unused balance of this additional funding to Department of

Finance. There were no other known contingent liabilities at 30 June 1994.

16. Insurance

Consistent with Commonwealth Government policy AUSTEL acts as its own insurer. Losses are expensed as incurred.

17 Applications Fees

The Telecommunications (Application Fees) Act 1991 prescribes that fees payable with various applications lodged with AUSTEL under the Telecommunications Act 1991 are payable to the Commonwealth. These fees are collected by AUSTEL and remitted to the Department of Communications and Arts, representing the Commonwealth, on a periodic

basis and are not reflected in the financial statements. A statement of fees collected during the year is as follows: 1994 1993

$ $ $ $

F e e s h e ld b y A U S T E L a t

b e g in n in g o f y e a r 33,879 121,395

R e ce ip ts Fees 2,090,380 1,695,880

Interest on deposits 4,457

2,094,837

3,689

1,699.569

2,128,716 1,820,964

E x p e n d itu re Payments to the Commonwealth 2,082,847 1,785,911

Bank fees and refunds 1.900

2,084,747

1,174

1,787,085

F e e s h e ld b y A U S T E L a t e n d o f y e a r 43,969 33,879

« Π >

18 Related Parties

The names of persons who were Members or Associate Members of AUSTEL at any time during the financial year are as follows:

Mr R Davey Mr R Brown

Mr N Tuckwell Prof A Pels

Ms J Plante Mr D Round

Mr R Horton

During the 1993/94 Financial Year Mr R Davey finished his appointment on 20/6/94 and Ms J Plante resigned on 24/9/93. Mr R Horton commenced on 25/9/93 and Mr N Tuckwell commenced on 8/11/93.

There were no related transactions between AUSTEL and related parties during the 1993/94 financial year.

19 Remuneration of Members

Remunerations paid to Members and Associate Members in the year ended 30 June 1994 are as follows:

1993/94 1992/93

Number of Members Number of Members

$0 - $9,999 2 3

$10,000 - $19,999 1

$20,000 - $29,999 1

$60,000 - $69,999 1

$70,000 - $79,999' 1 1

$90,000 - $90,999 1

$120,000 - $129,999 1

$130,000 - $139,999 1

20 Auditor's Remuneration

The estimated fee payable to the Australian National Audit Office (ANAO) for the 1993/94 audit of financial statements is $33,000 and for carrier licence fees is $2,000 (1992/93-$31,960).

APPENDIX 6

AUSTEL’S STATE OFFICE ADDRESSES

N ew South Wales

6th Floor 169 Macquarie Street PARRAMATTA NSW 2150

Contact: Allan Jones Tel: (02) 893 9182 Fax: (02 893 9489

Victoria/T as m ania

5 Queens Road MELBOURNE VIC 3004

Contact: Kevin Kirkpatrick Tel: (03) 828 7401 Fax: (03) 828 7309

Q ueensland

Unit 12A Lang Business Centre 97 Castlemaine Street MILTON QLD 4064

Contact: Gary Ryan Tel: (07) 369 5511 Fax: (07) 368 3296

N orthern Territory/ South Australia

Suite 4, 148 Green Hill Road PARKSIDE SA 5063

Contact: Mark Burgess Tel: (08) 373 4311 Tax: (08) 373 4145

W estern Australia

Second Floor 5-11 Ord Street WEST PERTH WA 6005

Contact: Colin Jones Tel: (09) 324 1344 Fax: (09) 321 2510

APPENDIX 7

MEMBERSHIP

Chairman: R obin D avey (21 June 1989 - 3 June 1994)

Robin Davey worked for many years in trade practices and consumer protection, both as a lawyer and as a senior administrator. He was involved in policy work on the formulation and implementation of Australian freedom of information laws. He became Chairman of AUSTEL in June 1989. He was also an Associate Member of the Trade Practices Commission, a member of the Council and Executive Board of the Standards Association of Australia and the Chairman of the Advisory Board to the Melbourne University Law School’s Graduate Diploma in Media Communications and Information Technology Law.

Member: Joh an n a Plante (30 O ctober 1989 - 24 Septem ber 1993)

Johanna Plante has been involved in the telecommunications industry throughout her career. She holds a Bachelor of Electrical Engineering (First Class Honours) degree and has worked in the areas of engineering, marketing, strategic planning and business development. She has held a series of management positions in Telstra and has worked in the private sector as a management consultant. She also

held a four-year appointment as an Associate Member of the Trade Practices Commission from 16 November 1990.

Member: N eil T uckw ell (Member 8 November 1993 - 8 November 1998; Acting Chairman from 6 June 1994 pending appointment of a permanent Chairman)

Neil Tuckwell has a strong background in telecommunications having spent 10 years working for various telecommunications companies, such as Bell Canada, OTC and Business Telecommunications Services. He has also been involved in establishing a number of businesses including BTS, a radio-paging and telephone answering organisation, INPHO, a telephone-based information service on Telstra’s 0055 network as well as CLEAR Communications. He holds a Master of Economics and Diploma of Financial Management.

Member: Dr Bob H orton (25 September 1993 - 25 September 1998)

Doctor Bob Horton has been with AUSTEL for five years. Before being appointed as a member of AUSTEL, he held positions as Executive General Manager, Technical Standards Division, and Specialist Technical Adviser. He is currently Chairman of the Australian Telecommunication Standardization Committee and in March 1993 was elected as Chairman of the Telecommunication Standardisation Advisory Group within the ITU. He has a First Class Honours degree in Electronic Engineering and

a Ph.D in microwave communications.

A ssociate Member: Professor Allan Pels (30 October 1989 - 30 October 1994)

Allan Pels is the Chairman of the Trade Practices Commission. He is an economist and qualified lawyer and has extensive academic and government experience. He was Chairman of the Prices Surveillance Authority from 1989 until 1992.

A ssociate Member: David Round (30 October 1989 - 30 October 1994)

David Round is an Associate Professor of Economics at the University of Adelaide. He previously taught at Macquarie University and held visiting posts at a number of universities in the United States of America. He has wide experience in assessing market behaviour of Australian and New Zealand companies including an appointment as an Associate Member of the Trade Practices Commission.

A ssociate Member: Robin Brown (26 August 1991 - 26 August 1996)

Robin Brown has been involved in public policy and administration, particularly in the areas of science and technology and consumer affairs, throughout his career. He has held the positions of Chair and then Director of the Australian Federation of Consumer Organisations and has served on a range of government advisory and regulatory bodies. He is currently a Member of the Life Insurance Complaints Board, the Pharmaceutical Benefits Pricing Authority and the Banking Industry Ombudsman Council. He also undertakes consultancy in consumer affairs.

APPENDIX 8

LIS TO FA U S TE L PUBLICATIONS

Reports

Market Dominance: Mobiles. Report on AUSTEL’s Investigation whether Telstra is in a Position to Dominate the Market for Public Mobile Telecommunications Services, July 1993.

Wireless Personal Communication Services. Report to the Minister for Communications, August 1993.

Competitive Safeguards and Carrier Performance 1992-1993: Report to the Minister for Communications under section 399 of the Telecommunications Act 1991, December 1993.

Annual Report, September 1993. 1

Mobiles dominance: Review of AUSTEL’s Direction of 14 July 1993 : Final Findings, March 1994.

AUSTEL’s Investigation into International Resale, April 1994.

The Cot Cases: AUSTEL’s findings and recommendations, April 1994.

Draft Reports

Network Termination Point/Network Boundary: Draft report to the Minister for Communications, July 1993.

Report on AUSTEL’s National Connect Review: Preliminary view, April 1994.

O ccasional Papers

Price Control Arrangements for the Australian Telecommunications Industry Occasional Paper Economics, June 1994.

A A greem ents

Telstra/Optus Agreement: Public Register, August 1993.

Optus/Vodafone Main Access Agreement: Public Register, August 1993·

T echnical Guides

Guide for Cabling Licence Applicants, June 1994.

Industry D evelopm en t A rrangem ents

Industry Development Arrangements for Customer Equipment, Year 5 Half year Report, May 1994.

APPENDIX 9

FIXED EQUIPMENT STANDARDS

During the year the following standards were either issued as new standards or revised and reissued:

• TS001 Safety Requirements for Customer Equipment, Issue 3 in conjunction with Amendment 1.

• TS003 Customer Switching Systems Connected to the Public Switched Telephone Network, Issue 3-

• TS021.3 General Requirement for Customer Equipment Connected to a Fast Packet Switched Network, Volume 3, 2048 kbit/s Packet Interface.

The following standard was examined by the relevant AUSTEL Working Group and a draft amendment was issued for public comment:

• TS003 Customer Switching Systems Connected to the Public Switched Telephone Network, Issue 3.

The following standards were examined by the relevant AUSTEL Working Groups and published as draft Technical Standards for public comment:

• TS002 Analogue Interworking and Non-interference requirements for Customer Equipment Connected to the Public Switched Telephone Network, February 1992, Issue 2.

• TS004 Voice Frequency Performance Requirements for Customer Equipment, February 1992, Issue 2.

• TS006 General Requirements for Customer Equipment Connected to the Non- switched Telephone Network, February 1992, Issue 2.

• TS013.1 General Requirements for Customer Equipment Connected to ISDN Basic Rate Access, Volume 1, Customer Equipment Access Interface Specification, July 1990, Issue 1.

TS013.2

TS014.1

TS014.2

TSOI 6

General Requirements for Customer Equipment Connected to ISDN Basic Rate Access, Volume 2, Conformance Testing Specifications, December 1990, Issue 1.

General Requirements for Customer Equipment Connected to ISDN Primary Rate Access, Volume 1, Customer Equipment Access Interface Specification, July 1990, Issue 1.

General Requirements for Customer Equipment Connected to ISDN Primary Rate Access, Volume 2, Conformance Testing Specifications, December 1990, Issue 1.

General Requirements for Customer Equipment Connected to a 2048 kbit/s Telecommunications Service, July 1990, Issue 1.

TS021.3 General Requirement for Customer Equipment Connected to a Fast Packet Switched Network, Volume 3, 2048 kbit/s Packet Interface, Draft Issue.

APPENDIX 10

ADM INISTRATIVE LAW

This Appendix contains details of certain matters of administrative law including: comments by the Ombudsman, decisions of courts, decisions by administrative tribunals, FOI procedures, consultancies, advertising campaigns and market research.

COMMENTS BY THE COMMONWEALTH OMBUDSMAN

No public comments regarding this Authority were made by the Commonwealth Ombudsman during the financial year.

DECISIONS BY COURTS AND TRIBUNALS

Only two cases involving AUSTEL were subject to decisions by tribunals or courts. Two other cases involving mobiles dominance (action by Telstra against AUSTEL) and AMPS and timed traffic (action by Optus against AUSTEL) did not proceed.

In its ID As fo r Customer Equipment Year Four Report, AUSTEL recorded that the endorsements of two suppliers were pending further investigation. Since that report, both companies’ endorsements were revoked and their permits subject to the Arrangements cancelled. One of the companies, ‘Sun Moon Star Australia Pty. Ltd.’, subsequently had its permit reinstated, following an appeal to the Administrative Appeals Tribunal.

An appeal lodged with the Merit Protection and Review Agency (MPRA) challenged a Notice to Retire an AUSTEL staff member under Section 76W of the Public Service Act. The MPRA subsequently confirmed the Notice by majority decision of the Committee.

FREEDOM OF INFORMATION - SECTION 8 STATEMENT

O rganisation, and Functions

Information outlining the organisation and functions of the Authority is covered in Chapters 1— 7 of this Report.

Pow ers

AUSTEL has an FOI Co-ordinator w ho has the authority to give or deny access to documents under the FOI Act. Where a decision is made to deny access to a document, that decision may be subject to internal review by the Chairman, who is the Principal Officer under the FOI Act.

Arrangem ents for Outside Participation

AUSTEL consults with government, commercial, industry, consumer, standards and other relevant bodies and organisations. As part of its consultative arrangements, AUSTEL has established a num ber of Advisory Committees. These committees currently deal with standards, numbering, consumer issues, law enforcement and compliance. AUSTEL also chairs the Australian Telecommunication Standardization Committee (formerly the Australian CCITT Committee) which assists us in managing Australia’s contribution to the setting of international technical standards for telecommunications. More details of these activities are covered in the main body

of this report.

In addition, AUSTEL staff at all levels have day-to-day contact with a wide range of individuals from outside agencies and the general public.

Under our enabling legislation, AUSTEL is also able to hold public inquiries. Details of inquiries such as the date and subject matter must be published. While the legislation generally leaves it to AUSTEL w hether to hold a public inquiry, certain provisions in the Act enable the Minister to direct AUSTEL to hold inquiries, and other provisions require AUSTEL to hold inquiries.

Categories o f D ocum ents

Available to the public free of charge on request are brochures on various regulatory telecommunications issues, fact sheets, newsletters, regular quality of service reports, IDA updates, com ponents lists, media releases, copies of notes for addresses, occasional papers, interim reports and reports of AUSTEL’s investigations

into various issues. AUSTEL also maintains registers of eligible services under class licences, a register of permits issued by AUSTEL for connection of customer equipm ent or type of customer equipm ent to a carrier’s network, a register of cabling licences issued by AUSTEL, a register of persons w ho do not want to receive

unsolicited facsimiles, public and confidential registers of access arrangements, a public register of AUSTEL’s opinions about what constitutes a basic carriage service, a public roll of eligible services that may be supplied only if the supplier is enrolled and a public register of AUSTEL’s investigations.

Documents available for purchase include interim reports and reports of AUSTEL’s investigations into various issues, and the public portion of access agreements negotiated between the carriers. Each year, AUSTEL’s Annual Report includes details of major publications for the year under review (see Appendix 8).

Other categories of documents that are kept by AUSTEL include: submissions and complaints to AUSTEL; correspondence, minutes and file notes relating to matters considered, or under consideration, by AUSTEL or its staff; instructions to, and advice from, AUSTEL’s legal advisers; minutes of AUSTEL’s meetings; minutes of meetings of AUSTEL’s advisory committees and their working groups; documents relating to AUSTEL’s administration of the IDAs; documents relating to the day to day internal administration of the Authority.

A ccess to D ocum ents

Documents may be inspected at, and where appropriate purchased from, AUSTEL at Jetset House, 5 Queens Rd, Melbourne, Victoria. Arrangements should be made with AUSTEL’s Freedom of Information Contact Officer who may be contacted on (03) 828 7381. Hours of business are Monday to Friday, 8:30 a.m. to 5:30 p.m.

Access to documents may be limited on the grounds of protecting material which was obtained by AUSTEL in confidence, or where disclosure of the material would involve the unreasonable disclosure of information relating to the personal affairs of a person. In those circumstances, AUSTEL will, where possible, make a copy of the document with deletions such that the copy would not disclose such information and would not, by reason of the deletion, be misleading.

CONSULTANTS AND LEGAL ADVISERS - PAYMENTS MADE 1993-94

Consultant

Consultant

TASK

Mediation services - Interconnection charges for carriers

COST $

22,043-73

Accord Group (Aust) P/L General Legal advice 161,681.33

Attorney-General's Department

Litigation - Mobiles Dominance case 299,558.83

Australia Hearing Services - NSW Evaluation of immunity of hearing aids against GSM mobile phone

transmissions

14,360.00

Aymever P/L AUSTEL's contribution to a jointly

sponsored project to examine the relevance of technical standards setting

3,400.00

Consumers' Telecommunications Network

Report on consumer participation in telecommunications standards setting. 20,000.00

Cornell and Morris Decision Making Framework project 45,323.57

Figura Consulting Decision Making Frameworks project 12,950.00

Dr Stephen P King Decision Making Frameworks project 28,125.00

Research International Australia P/L A customer satisfaction survey in support of the inquiry into the extend

of unmet needs in rural and remote areas for the standard telephone service

8,100.00

RFI Industries P/L Evaluation of immunity characteristics of AMPS cellular phone handsets and GSM mobile phone handsets

4,065.00

©

A C onsultant

Royal Melbourne Institute of Technology

Mr David Shavin, QC

University of Melbourne - Prof Peter Gerrand

University of Melbourne - Prof Peter Gerrand

TASK COST $

Project 'Standards Information Data 2,200.00 Retrieval'

Decision Making Framework project 32,190.00

Interconnection model study 60,000.00

Decision Making Framework project 8,000.00

INDEX

TO THE A U ST E L ANNUAL R E P O R T 1 9 9 3 -9 4

INDEX

TO TH E A U S T E L ANNUAL R E P O R T 1 9 9 3 -9 4

A Access and interconnection, 3-6

agreements, 3-5

Accounting separation, 11-12 Administrative law, 120-2 Allocation of numbers, 23 AMPS (analogue mobile phone system), 4-5, 36 Anti-competitive practices, 9

APEC (Asia-Pacific Economic Co-operation) Telecommunications Working Group, 40-1 AUSTEL membership, 47, 114— 15 organisation, 46-9, 91-9

payments to consultants and advisers, 123-4 publications, 116-17

Australian Telecommunication Standardization Committee, 39,47

B Ballot: see Preselection Ballot Bell Canada, 19 Brown, Robin, 115 Bulletin Board Service, 39— 40

c Cabling, licensing and regulation, 31 Caller identification, 20, 35 Carriers, negotiations between, 4

Chairman’s summation, x-xii Chart of Accounts, 11-12 ‘Chum’ (transfer of customers), 30 Civil Aviation Authority, 35 Collins, Senator the Honourable Bob, Minister for Transport and Communications, 47 Committees

ATSC (Australian Telecommunication Standardization Committee), 39 AUSTEL representation on external committees, 40 Global Standards Collaboration (GSC) group, 40 National Caller ID Consultative Committee, 20 Numbering Advisory Committee, 23, 25 Qualifications and training Advisory Committee, 31 Standards Advisory Committee, 35

Telecommunication Standardization Advisory Group, 40 United States Committee Tl, 40 Competition, 2 Complaints, 1993-94, 10, 44, 54— 9

‘COT Cases’ (‘Casualties of Telecom’), 15, 18-19 Compliance of Annual Report with reporting guidelines, 52-3 Consultants and advisers, payments, 123-4 Consumer groups

Consumer Advisory Committee, 15 Consumers’ Telecommunications Network, 39 Consumer protection, 14— 20 Coopers & Lybrand, 19 Cost Allocation Manual, 11-12 ‘COT Cases’ (‘Casualties of Telecom’), 15, 18-19 ‘Customer’, AUSTEL definition, 8-9

D Davey, Robin, 93, 114 Decision-making framework, 10-11 DEIS (double-ended interconnected services), 30 Directions to carriers, 60— 90

E Eight-digit numbers, 24— 6 Environment Protection Agency, 32 ESNs (electronic serial numbers), 30 European Telecommunications Standardisation Institute, 39, 40

F Eels, Professor Allan, 115 Financial regulatory regime, 11-12 Financial statements, 100-12

500-metre rule, 29 Flexiplans, 8 Fortitude Valley, Queensland, 19 Freedom of information statement, 120-2 Freephone numbers, change from 008 to 1800, 24— 5

G GSM (Global System for Mobile Communications), standards, 35-7

H Hearing aids, interference, 36 Hilmer Report, xi Horton, Dr Bob, x, 40,91,93, 115 Human resource management, 91-9

Industry consultation workshop, May 1994, 11 Industry Development Arrangements, 38 Inspectorate, investigations, 41 Intellectual Property Rights, 35 Interconnection, 5-6 International 0055 services, 7 ISPCL (international service providers class licence), 29 ITU (International Telecommunication Union), 39, 40

L Lee, Honourable Michael, Minister for Communications and the Arts, 47 Licensing, 28-32

M Ministers and ministerial powers, 47 Mission statement, 46 Mobile telecommunications services

electromagnetic compatibility (EMC), 36 installation practice, 36-7 international roaming, 36 market dominance, 10, 116 Optus, 10 see also AMPS; GSM; Hearing aids; PACTS; Vodafone

Mona Vale, NSW, 24, 25 Mount Eliza, Victoria, 32

I

N National Association of Testing Authorities, 38 National Land Access Code, 28 National Numbering Plan, 24-6 Net Universal Service Cost (NUSC), 43 New Zealand, 5 Numbering, 22-6 Number portaibility, 24

0 Ombudsman, Commonwealth, 15 Ombudsman, Telecommunications Industry, 15, 19, 30 Optus

mobile services, 10 quality of service reporting, 18 ‘13’ service, 4, 5

p

PACTS (public access cordless telecommunications services), 28 class licence, 29 Plante, Johanna, x, 93, 114 Preselection Ballot, 6— 7

cost, 7 public education campaign, 6 Price control, 16-17 Pricing, 8-11 Privacy, 15, 19-20 Publications 1993-4, 116-17 Public telephones (payphones), 16

Q Quality of service, 17-18 QTAC: see Committees

R ‘Resale’, not defined by Act, 9 Round, Associate Professor David, 115 Rural and remote areas

RRWP (Rural and Remote Working Party), 15 telecommunications needs, inquiry, 15

s Service providers, 7-8 industry review, 8 SPAs (Strategic Partnership Agreements), 8 SPCL (service providers class licence), 29 Spectrum Management Agency, 37 Staff, 91-9 Standards

Advisory Committee, 35 fixed equipment, 118-19 mobile equipment, 36-7 network, 35, 37 review, 35 State offices, 113 Subscription TV, 35 Synchronous digital hierarchical interfaces, 36

τ Technical standards and regulation, 34— 41 Telecom (Telstra Corporation) ‘COT Cases’ (‘Casualties of Telecom’), 15, 18-19

Customer Help Centre, 15 freephone numbers, 24-5 international 0055 services, 7 market dominance, 8-11 market researchers given access to call-charge data, 8 National Connect service, 7 price cap compliance, 16 quality of service reporting, 17-18

‘whole of government’ resale agreements, 8-9 T elecommunications Industry Ombudsman, 15, 19, 30 Industry Training Advisory Board, 31

National Code, 31-2 Telecommunications A ct 1991

agreements deregistered, 4, 5 amendments, 9, 31 directions to carriers, 60-90 register of carrier access agreements, 3 Telstra Corporation: see> Telecom Test house accreditation, 38-9 Trade Practices A ct 1974, 3

Trade Practices Commission, 15 Tuckwell, Neil, x, 91, 93, 114

u Universal service obligation, 42— 4 levy claim cycle, 43 model review, 44

V VICON, 6 Vodafone, quality of service, 18

w Wauchope, NSW, caller ID trial, 20 Wireless personal communications services, report of inquiry, 37

ADDENDUM

PARTICULARS OF NOTIFICATIONS UNDER SECTION 49 OF THE ACT

There was one Notification of policies of the Commonwealth Government relating to the development of an internationally competitive customer equipment industry in 1993-94. This was issued by the then Minister for Communications, David Beddall on 7 July 1993, and notified AUSTEL of the policies of the Commonwealth Government relating to the development of an internationally competi­ tive customer equipment industry that are to apply to the issue, variation or cancellation of permits for customer equipment under Division 6 of Part 12 of the Act.

ERRATA

In Chapter 7 on page 47, the list of Ministers with responsibility for legislation from which AUSTEL derived its functions and powers during 1993-94 should also include the Hon. David Beddall, Minister for Communications.

In Appendix 1, part C, the guidelines relating to specific requirements of enabling legislation should read s. 393, not s. 343.