087/06
13 September 2006

The Government has further strengthened a key consumer safeguard - the Network Reliability Framework (NRF) - so that recurrent faults in Telstra’s network are fixed more effectively and efficiently, the Minister for Communications, Information Technology and the Arts, Senator Helen Coonan, announced today.

The NRF requires Telstra to report on the performance of its fixed telephone network and improve the performance of the least reliable parts. Telstra’s compliance with these requirements is monitored by the Australian Communications and Media Authority (ACMA).

“While it would not be practical, or perhaps even possible, to construct and maintain a fault-free network, we want to minimise the number of faults and their duration, particularly for those services that experience higher than average fault levels,” Senator Coonan said.

“That is why Telstra will now be required to automatically fix at least 480 of the worst performing cable runs each year, with minimum quotas for smaller exchange areas, mostly in regional areas. This new approach will better target Telstra’s remediation efforts to provide greater benefits to consumers,” Senator Coonan said.

“The Government has been working with Telstra and ACMA since the 2005 review of the NRF to develop a better approach to the safeguard to provide greater benefits to consumers.
“These changes will significantly improve the fault prevention and remediation arrangements under the NRF, particularly in regional, rural and remote Australia.”

Approximately 99 per cent of services on Telstra’s network have no faults in any one month, but there are some localised exceptions. The NRF focuses on Telstra’s fixed network at different levels, from broad regions right down to individual services, and the changes will strengthen its operation at each of those levels.

There will also be stringent new tests to assess the effectiveness of remediation work performed under the NRF. For example, at the cable run level, Telstra will be required to reduce the incidence of faults on the worst performing cable runs by at least 90 per cent.

At the individual service level, Telstra will need to ensure recurrent and post-remediation faults are effectively targeted and promptly fixed. Reporting and monitoring arrangements under the NRF have also been streamlined to reduce the reporting burden on Telstra while ensuring effective monitoring and oversight.

The Government will continue to monitor the NRF to ensure the new arrangements meet the objective of reducing faults and improving the reliability of Telstra’s network.