103/05
8 September 2005

Government moves to strengthen consumer safeguards

The Government will strengthen the Network Reliability Framework (NRF) to ensure that the most unreliable parts of Telstra’s network, across Australia, are fixed quickly and efficiently and we will bolster the Customer Service Guarantee (CSG) , Minister for Communications, Information Technology and the Arts, Senator Helen Coonan, announced today.

The NRF was introduced as a Telstra licence condition in 2002. The NRF requires Telstra to fix poorly performing pockets in its fixed line network. Under the NRF, Telstra is legally required to report regularly to the Australian Communications and Media Authority (ACMA) on faults within its network.

While ACMA found that Telstra’s network and services are generally reliable for customers, it found that metropolitan areas have more reliable services than Australians living in rural, regional and remote areas.

ACMA has made a number of recommendations aimed at improving the operation of the NRF with a particular focus on improving repairs in rural, regional and remote Australia.

“The Government will make it clear that the main objective of the NRF is to reduce the number of faults in the Telstra network following recommendations made by ACMA,” Senator Coonan said.

“Telstra will now be required to automatically fix a minimum of 480 cable runs each year. Under the NRF, ACMA will identify which cable runs must be remediated and will focus on the smaller exchange areas where Telstra is less likely to have a commercial incentive to upgrade its network.

“The NRF will be reviewed in two years time to see if it is meeting the objective of reducing faults and improving the reliability of Telstra’s network.”

The Government has also announced that the CSG will be tightened to ensure telecommunications carriers cannot unreasonably use the Mass Service Disruption notice arrangements to gain exemptions from the CSG timeframes.

“We will further strengthen the CSG by increasing the automatic payments made to consumers if carriers, including Telstra, do not fix faults or install phones in the set timeframes,” Senator Coonan said.

The penalties will be increased by 21 per cent in line with inflation. This is the first time the penalties have been increased since the CSG was introduced in 1998.

The review is available here.