Senator the Hon Stephen Conroy

Minister for Broadband, Communications and the Digital Economy

DEPUTY LEADER OF THE GOVERNMENT IN THE SENATE

CDMA mobile network closure postponed

The Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy, today announced that closure of the CDMA network would be postponed beyond 28 January 2008 and urged consumers to make their necessary arrangements to migrate as quickly as possible.

“I have notified Telstra today that at this point in time I am not in a position to declare equivalence between the Next G™ network and the CDMA networks,” Senator Conroy said.

“Telstra will provide me with advice within two weeks on how they will address the issues that have been identified, and report to me on the rectification to enable me to reconsider this matter.

“Telstra have advised me that this can be done by 28 April. This seems reasonable, subject to me a receiving a report that comprehensively addresses my concerns and consumers should work on the basis that the CDMA network will be switched off,” said Senator Conroy.

“Consumers must find out what they need to do to replace their CDMA equipment and services. They must act quickly and carefully to ensure they obtain the right handsets, other equipment and services suitable to their needs,” Senator Conroy said.

Consumers having difficulties with their Next G™ equipment and services should contact Telstra as a matter of urgency to have their problems addressed.

“I want to congratulate Telstra for investing extensively in its Next G™ network which is cutting edge new technology. I appreciate the resources and commitment Telstra has brought to implementing its new national network, and I feel confident that Telstra will be able to resolve the issues that have been identified speedily,” Senator Conroy said.

A key factor in the Minister’s decision was a report by the Australian Communications and Media Authority (ACMA) on the coverage of the two networks.

A copy of this report is being posted to the Department’s website, www.dbcde.gov.au/communications_for_consumers/mobile_services/cdma_mobile_network_closure_postponed
Some parts of the report have been blacked out at Telstra’s request as the material was provided on a confidential basis.

“ACMA found, and I agree, that the Next G™ footprint is equivalent to the CDMA network. ACMA also found that the Next G™ coverage using an external aerial was equivalent; however issues were identified with handheld coverage, which I have asked Telstra to address,” Senator Conroy said.

In order to access a Next G™ service that is equivalent to a CDMA service, it is crucial customers use an appropriate handset or equipment. In some cases, customers have purchased, or are purchasing, Next G™ handsets and equipment that do not provide equivalent coverage.

“I appreciate that Telstra has been very active in working with customers affected by this situation, including exchanging handsets in genuine cases where this is required to give them equivalent coverage.

“I have made it clear to Telstra that it should continue to do everything possible to ensure that customers are using the correct Next G™ equipment. This should include replacing handsets at no financial penalty in genuine cases,” Senator Conroy said.

“I have asked Telstra to be more active in publicly informing customers to contact them with Next G™ handsets issues, and to include the steps it has taken in the report to me. We expect Telstra to advertise a phone number that customers can ring to get these issues resolved. Telstra will continue to ensure that its website contains the information that customers need on the coverage capabilities of Next G™ handsets.

“In addition to the ACMA report I have been provided with material by the Department of Broadband, Communications and the Digital Economy. This includes the results of a survey which indicates that some customers have not received the most appropriate advice for their needs. This survey is also being posted on the Department’s website.

“While the survey shows that the majority of advice has been appropriate, it is vital that customers receive the correct advice.

“Telstra has agreed to implement a retail accreditation program immediately to ensure that Telstra retail staff are meeting a minimum standard of excellence. Telstra has taken the lead on this and I encourage the rest of the industry to follow.

“The final issue that has been identified is that a number of customers have depended on the CDMA network to provide their home phones through CDMA Wireless Local Loop, while many essential service providers, farmers and agricultural companies use CDMA telemetry systems for remote data communications.

“I am concerned that some of these customers may not have had access to the necessary Next G™ equipment in time to migrate to the Next G™ network.

“I have asked Telstra to confirm in its report that this equipment is available to enable the migration, and that these customers have been given every opportunity to migrate.

“I recognise that Telstra is working urgently with these customers to address their concerns, and I look forward to a further report from Telstra once the needs of these customers for an equivalent service have been addressed,” Senator Conroy said.

18 January 2008
Contact: Kate Cornick 0401 794 710