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BROADBAND TO WHERE?. KEY CONCEPTS Holly Raiche. Government Policies on Broadband. Narrowband to all 1975 - Aust. Telecommunications Commission 1989 - Community Service Obligations 1991 - Universal Service Obligation - to include prescribed carriage services - a possibility?

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broadband to where

BROADBAND TO WHERE?

KEY CONCEPTS

Holly Raiche

government policies on broadband

Government Policies on Broadband

Narrowband to all

1975 - Aust. Telecommunications Commission

1989 - Community Service Obligations

1991 - Universal Service Obligation - to include prescribed carriage services - a possibility?

Broadband to all (?)

1991 - Digital Data Service Obligation - ISDN

BSEG, HiBIS, ISG, etc etc

2007 - Broadband Guarantee

2007 - ALP Election - $4.7 billion, 12 Mb/s, FTTN, to 98% of the population - over 5 yrs

April 2009 - wholesale access only FTTP fibre with speeds to 100Mb/s up to 93% of Pop. investing $43bil with private sector

what is broadband

What Is Broadband

Dial Up Modem - 56 Kb/s

ISDN - 64 Kb/s

ADSL - 512/128 Kb/s

ADSL 2, ADSL2+

VDSL - 100 Mb/s - symmetric speeds

OECD (2006) Download speed 256 Kb/s

FCC (2009) - 768 Kb/s

ITU-T 1.5 - 2Mb/s

(MPEG2 video uses 6 Mb/s)

Data on Internet take up was monitored by the ACCC but is now surveyed bi-annually by the ABS

telecommunications regulation

TELECOMMUNICATIONS: REGULATION

LEGISLATION

Telecommunications Act 1997

Radiocommunications Act 1992

Trade Practices Act 1974 (particularly Parts XIB &XIC)

REGULATORS

Australian Communications and Media Authority (ACMA)

Australian Competition and Consumer Commission (ACCC)

telecommunications key concepts

TELECOMMUNICATIONS: KEY CONCEPTS

Carriage - the use of electromagnetic energy to deliver communications at a distance

Regulation of carriage:

Telecommunications Act

S. 12 - The Act has effect subject to the Radiocommunications Act 1992 (but the fact that a person is authorised to do something under the RA does not mean they are authorised under TA)

Radiocommunications Act 1992 - Part 3.1 - essentially a prohibition on the operation of an unlicensed radiocommunications device except in exceptional circumstances.

telelcommunications key concepts

TELELCOMMUNICATIONS: KEY CONCEPTS

Carriers - What are they

owner(s) of network units used to supply carriage servicesto thepublic must obtain a carrier licence (s. 42)

network Units - link links connecting distinct places over a statutory distance (50 kms)

carriage services - Service for carrying communications by means of guided and/or unguided electromagnetic energy

supply to the public - if unit used for carriage of communications between two end users where at least one end user is outside immediate circle of owner of network unit

telelcommunications key concepts1

TELELCOMMUNICATIONS: KEY CONCEPTS

SERVICE PROVIDERS (S. 86)

Includes Carriage and Content Service Providers

Carriage Service Providers (s. 87)

If person supplies a listed carriage service to the public using network units.

Listed carriage service (s. 16)

Carriage service between point in Aust and another point in Aust or point outside Aust

Supply to the public (s. 88 - as before)

Content Service Providers (s. 97(2)

If person uses/proposes to use listed carriage service to supply a content service to the public - is a listed content provider.

Content service (s. 15) is B’casting service, on-line information or entertainment service, any other on-line service by Min. Determination

telelcommunications key concepts2

TELELCOMMUNICATIONS: KEY CONCEPTS

Competition in Carriage

In Telecommunications - competition almost always involves access to a competitor’s infrastructure/ services. So necessarily is about cooperation in a competitive environment.

TA

Schedule 1 - Access to Facilities

TPA - Part XIB/XIC

Part XIB - Anti-competitive conduct

Part XIC - The Access Regime

telelcommunications competition rules

TELELCOMMUNICATIONS: Competition Rules

PART XIB

Competition Rule - Must not engage in anti-competitive conduct

Competition Notices

Record Keeping Rules

part xic the access regime

Part XIC: The Access Regime

Definitions

Access - to listed carriage services

Access Seekers - requested access to a declared listed carriage service

Access Providers

Carriage services

Declared services/active declared services

Declaration of Service

Deemed to be declared

On the recommendation of the TAF

After a public inquiry - initiated by the ACCC or an individual

part xic the access regime cont d

Part XIC: The Access Regime (cont’d)

Objects of Part XIC

Promotion of LTIE

Promotion of competition in markets

Achieving any-to-any connectivity

Encouraging economically efficient use and investment in infrastructure

Standard Access Obligations

Must supply service

Must provide interconnection

Must supply service on equivalent terms and conditions to what provided to self - technical, operational quality, fault detection, handling & rectification

Provision of billing, including timing and content

Access to conditional access customer equipment

existing interconnection arrangments

PSTN

EXISTING INTERCONNECTION ARRANGMENTS

DECLARED SERVICES - ULLS OR LSS

Telstra

DSLAMs

Competitors

home

LEX

pillar

Customer Access Network (CAN) - broadband service delivered through the digital subscriber line access multiplexors (DSLAMs) in the LEX. The CAN - the ‘twisted cooper pair’ - LEX to home - owned (almost totally) by Telstra as the ‘bottleneck’ facility

the access regime

The ACCESS REGIME

Terms and Conditions of Supply:

Ordinary Undertakings

Model Terms and Conditions

Special Access Undertakings

Telstra v The Commonwealth [2008] HCA7

Was declaring a service beyond power of the ACCC because it was an acquisition of property – must be on just terms.

A ‘synthetic argument’ and ‘unreal’

Rights acquired when Telstra was privatised were always subject to a competition regime.

telecomunications bill

TELECOMUNICATIONS BILL

Proposed changes to competition regime:

Changes to Part XIC

End of Undertakings

Access determinations and binding rules of conduct

Fixed principles

Separation of Telstra:

Functional or structural

telecommunications bill

Telecommunications Bill

Separation Regimes: A Chronicle of Failure

Concept of removing incentive from integrated provider from favouring self over competitors.

Hilmer Report

COAG Principles

Record Keeping Rules

Special Telstra RKR

Regulatory Accounting Framework

Parliamentary Inquiry into Telstra Structure

ACCC Report

Accounting Separation

Operational Separation

telecommunications bill1

Telecommunications Bill

Functional Separation

Principles

Equivalence

Retail/wholesale business units at arms length

Ministerial Determination of Functional Separation Requirements (90 days after Act comes into effect)

Telstra’s draft functional separation to Minister (90 days later)

Comply with principles

Establish Oversight and Equivalence Board

Released for Public Comment

ACCC annual monitor and report on undertaking

telecommunications bill2

Telecommunications Bill

Structural Separation: The Carrot (or stick)

The concept - the network wholesale is a structurally separate entity to the retail entity

Telstra to provide three voluntary undertakings

Telstra will not supply fixed line carriage services to its retail customers using a telco network over which it is in a position to exercise control - and visa versa

Not be in a position to exercise control over an HFC network

Not be in a position to exercise control of a subscription television broadcasting licence (FOXTEL)

Can be accepted by ACCC (on criteria inter alia, determined by the Minister)

telecommunications bill3

Telecommunications Bill

Structural Separation: The Carrot (or stick) (cont’d)

The Stick:

ACMA must not allocate a spectrum licence to Telstra if the licence relates to a designated part of the Spectrum

BUT

Does not apply if a Structural Separation undertaking is in force and one or other of the undertakings are in force.

The Minister also has the power to exempt Telstra from undertakings on the HFC/FOXTEL if satisfied that the structural separation is ‘sufficient to address concerns about the degree of Telstra’s power in telecommunications markets’.

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