Senator the Hon Helen Coonan
Minister for Communications,
Information Technology
and the Arts

Deputy Leader of the Government  in the Senate

Address to 2007 AMTA Annual Conference

Sydney
Tuesday 17 July 2007

Introduction

Thank you to Chris and all the AMTA members for the opportunity to once again address your Annual Conference.

It is always a pleasure to be able to address AMTA and I take this opportunity to thank you for re-arranging the running order of this Conference to enable me to speak, a Cabinet meeting meant that I was unable to attend yesterday.

Each year, this conference provides an excellent opportunity for all those with a stake in the mobile telecommunication industry to come together, discuss issues and share ideas.

There can be no doubt that the mobile telephone industry is one of the major drivers of activity and innovation in our economy and the Australian Mobile Telecommunication Association (AMTA) continues to be a very effective peak body.

The agenda for the two days of this conference is comprehensive and the discussions on everything from trends in content and regulation to the impact of mobile phones on social networks will be fascinating.

10 years of competition

As everyone here would be aware, we recently celebrated 10 years of open competition in the telecommunications industry.

From very humble beginnings in 1997 when there was a near duopoly in the telco industry, we now have a thriving open competitive market.

Over the last 10 years, four major carriers have built competing mobile networks, with the competitive tension driving great choice and lower prices for consumers.

The consumers’ love of the mobile telephone appears to know no bounds, with the number of mobile services rising from about 5.9 million at the end of 1998 to a staggering 19.76 million in 2005-06.

Pace of change

I continue to be amazed by the pace of innovation in the mobile phone industry and the new applications that are being found for the next generation of technology.

These new applications range from social networking opportunities, for example the Dodgeball network in the US, which alerts members via their phones when friends are nearby, to bridging the gap for hearing impaired people through the use of mobile video conferencing that enables the use of AusLan signing language.

And with greater bandwidth and almost daily advances in the technology, Australians are being presented with a wide range of improved services.

My vision for tomorrow is one of seamless connectivity, where consumers move instantaneously from platform to platform with no break in play.

Whether for work or for pleasure, we are moving inexorably towards a completely converged world, where consumers hold ultimate power over how and when they work, receive information or are entertained.

People are already expecting more and more from their providers, including for example access to audiovisual content, on the move and at any time.

Of course, these advances also bring exciting new business opportunities for service providers.

Mobile Internet access, online games, retransmitted broadcasting content, mobile chat rooms and proprietary network content portals are some examples of the premium services available over mobile phones and other communications devices.<

Economic importance

And there can be no doubt about the importance of the mobile network to the Australian economy.

I understand that Dr Kris Funston will shortly go through the findings of the Access Economic report into the economic significance of the mobile telephone industry.

I have to say as a lawyer by training I love nothing better than a robust debate about legal constructs and the complex frameworks that underpin the telecommunications landscape. I have more than a passing interest in regulation.

However, I have to admit to not immediately sharing the level of excitement that my economics adviser clearly had when he told me that this is the first time that ‘computable general equilibrium’ modelling has been applied to the mobile telephone industry, which I’m told is a very exciting concept!

However, in all seriousness and with no disrespect to those who practise the dismal science of economics, this report does highlight the clear importance of this industry to the Australian economy.

By using GE modelling, the Access Economic report goes beyond the direct impact and models the effect on the entire economy, including indirect impacts.

Without wanting to steal any of Dr Funston’s thunder, I think there are a couple of findings that are genuinely engaging.

The report finds that the mobile telecommunications sector increased Australia’s Gross Domestic Product in 2006 by a staggering $6.4 billion and increased full time jobs by 53,000.

And by assisting in the growth of productivity, the mobile sector created downward pressure on inflation, thereby supporting real wages increases.

These are the sort of results that make all the hard work, the angst and the frustration associated with reforming the telecommunications sector worthwhile.

From the closed shop arrangements of 1990, through to the vibrant, open and competitive framework we enjoy today, the reforms of the Howard Government have laid the groundwork for you, the industry, to play your part in Australia’s stellar economic performance.<

These are results you can quiet rightly be very proud of, and I congratulate AMTA on the initiative of getting such a report commission

Self regulatory activity

These are results you can quiet rightly be very proud of, and I congratulate AMTA on the initiative of getting such a report commissioned.

However, even with these enormous economic benefits, the wonderful world of new content and services also has a darker side that must always be borne in mind.

Some years ago, the Government recognised the potential for new technology to deliver content using devices such as mobile phones and saw the need to protect young mobile phone users from possible exposure to inappropriate content.

We were also concerned to ensure that consumers were being provided with adequate information about costs, and terms and conditions for accessing and stopping such services.

Therefore, in 2004, the Government directed the regulator, now the Australian Communications and Media Authority, to develop controls on access to content supplied via mobile phones, whether that content was supplied as a premium rate service or on proprietary content portals or ‘walled gardens’.

This led to the creation of the Mobile Premium Services Determination.

This determination places a number of requirements on service providers regarding illegal and adult content and includes measures to heighten child safety in mobile chat rooms.

In addition, industry developed the Mobile Premium Services Industry Scheme, which came into force in October last year.

Whilst, I would like to commend AMTA for its proactive leadership in assisting with the development of the premium services scheme, I think this is one area that requires careful watch.

Under the premium services scheme, there are strict requirements on premium service providers who offer products such as ring tones, wall papers and mobile games.

For instance, when a consumer has reached a threshold of $30 spent in any given month, they are meant to get a reminder SMS sent to their phone.

In addition, there are strict requirements on the provision of information on the cost of the service, how to unsubscribe and the provision of a helpline number.

However, there is evidence that these measures may not be hitting the mark as effectively as they could.

Whilst there are many service providers in this space that are doing the right thing by consumers, it would appear that there are some that could pull their socks up.

I recognise that there are some consumers, particularly young people, who are still getting into difficulties regarding their use of mobile premium services.

These difficulties can include unexpected high bills, difficulty stopping the supply of a premium service and difficulty contacting a premium service provider.

Given the evidence that this does continue to be an issue, I look forward to the review of the premium services scheme in October.

I will be seeking to take an active role in this review to ensure that the premium services scheme is addressing the concerns of the wider community and I will be writing to both ACMA and the Communications Alliance shortly.

For example, I think there may be merit in investigating whether the straight-talk website that I launched last year could be used as a central point of contact for consumers seeking information on premium services, including specific terms and conditions and information on how to unsubscribe.

And most importantly, the review needs to ensure that all in the industry are playing by and adhering to the rules.

To this end, carriers need to take some ownership of this issue too.

Carriers earn sizeable revenues from these services, so I think it is appropriate that this review investigate the nature of the relationship between the customer, carrier and service provider.

This is an important issue for the wider community and one where I am sure the industry will act responsibly.

The co-regulatory model depends on this responsible approach being taken by industry and to date the response has been exc

I look forward to a continuation of this proactive approach being taken to address these concerns with premium se

The New Content Services Legislation

I look forward to a continuation of this proactive approach being taken to address these concerns with premium services.

It is a fact that we now live in converged world, where consumers are receiving content across a variety of different platforms.

This means that the Government needs to, so far is practicable, provide a platform neutral protection framework.

The Content Services Bill 2007, which was recently passed by Parliament, delivers a comprehensive and platform-neutral framework that will allow for the regulation of current and emerging content services.

The legislation extends the current safeguards that apply to content delivered over the Internet or television to content delivered over convergent devices such as 3G mobile phones and services available via subscription Internet portals.

As a parent myself, I understand how important addressing this issue is for the wider community.

I believe that the reforms strike the right balance between protecting children and consumers online, whilst also allowing industry to develop new business models and utilise emerging technologies.

In developing this legislation, wide-ranging consultations were conducted with mobile phone companies, content developers and suppliers, broadcasters, major internet portal operators, and publishers.

AMTA was also closely consulted in this process, and all this valuable input has contributed to the resulting practical and workable legislation.

There is no doubt that the legislation has benefited from the constructive comments and advice provided by key stakeholders such as AMTA.

I firmly believe that a co-operative approach with industry is the best way to deal with these challeng

NetAlert - Protecting Australian Families On-Line

The new content services legislation is of course only one element, albeit a very important one, in the Government’s multi-faceted approach to providing safeguards for all Australians, and particularly children.

The NetAlert - Protecting Australian Families Online initiative which I announced last year will give parents and families the direct capacity to deal with problematic content on their home computers.

Under the National Filter Scheme component of this initiative, families will be offered free filters for their PCs or a subsidised ISP filtered service if they prefer.

The initiative also includes a consumer information campaign to educate parents about online dangers and how they can protect their children.

Significant funding will also boost NetAlert’s education and advisory activities and continue the operation of a free helpline number.

This will provide parents with an important tool for dealing with their children’s possible exposure to undesirable Internet mate

Mobile Phone Towers

Another key area of community concern requiring careful management from both the Government and industry is mobile phone tower installations.

It is a fact that there are nearly as many active mobile phones in Australia as there are people, 19.76 million to be exact.

The owners of these phones expect mobile access at any place and at any time, so appropriately located mobile phone towers are critical.

Having said that, the placement of mobile phone towers will always be controversial, and there will always be some complaints.

The concerns expressed to me and to my colleagues relate to aesthetic considerations, health, property values, and lack of adequate consultation.

Clearly, there must be a balancing act to ensure that carriers are able to put in place the infrastructure to meet the growing demand for services, whilst still addressing in a meaningful way the legitimate concerns of local communities.

It is in the interests of the industry as well as the community that carriers be conscious at all times of the need to get the balance right when planning and undertaking new infrastructure.

In this regard, I welcome the fact that the report of the Design and Innovation Taskforce is imminent.

The Taskforce, which has been managed by the Mobile Carriers’ Forum, has been identifying techniques and guidelines to improve the visual outcomes of mobile network infrastructure.

I understand that a Mobile Phone Base Station Design Guide is being developed, which will provide a process to help carriers document and assess the landscape context of a proposed mobile phone base station.

I also welcome two other developments in this area.

Firstly, in regard to health aspects of mobile phone towers, I welcome the revised format of the Environmental Electromagnetic Energy Report which has been developed by MCF and the Australian Radiation Protection and Nuclear Safety Agency, ARPANSA.

The revised report will provide more detailed and easier to understand information for the public, and will add to what is already a comprehensive electromagnetic energy compliance framework.

Secondly, I should mention the development of guidelines in 2006 by the MCF and local government representatives from around Australia.

These guidelines assist Councils to become more involved in the decision-making and consultation processes associated with the location and design of telecommunications facilities.

I understand that the carriers forum is re‑launching these guidelines and also has recently placed a Fact Sheet together with further information for Councils on its website.

Whilst these initiatives are to be applauded, the issue of mobile telephone infrastructure deployment will likely never be settled.

We must always be looking to ensure that the interests of the wider community are recognised.

In particular, carriers must always be mindful of community concern when selecting sites for infrastructure.

Again, whilst AMTA and the carriers forum continue to undertake some very good proactive work, governments must always keep watching to ensure that the competing needs of the community are being appropriately

Conclusion

Indeed, this is the co-regulatory framework in action.

Across a broad range of issues, the industry has shown that it is mature enough to proactively respond and take a leadership role to address key matter of community concern.

Government is certainly not a disinterested observer in this framework.

In fact, the role of Government in this area is to ensure that the interests of the wider community are protected.

In the vast majority of cases, industry is to be congratulated for your efforts

It is only on occasion that it is necessary for me to sound notes of caution, as I have done today on premium services and mobile phone towers.

I would like to thank AMTA for its continued input into the policy process and the leadership role it plays.

I look forward to continuing the positive relationship between the Government and AMTA and I again thank you for the invitation to address your conference.

Thank you.