Address to RadComms 2009
Wednesday, 29 April 2009
Good morning everyone, it's a pleasure to be here.
The radiocommunications sector plays an important role supporting many valuable and often vital services and I am pleased to have the opportunity to address so many key players here today.
The Australian Communications and Media authority has themed this conference to discuss the foundations we require for the future of this sector.
This links well with the Government's overarching ambitions across the economy and indeed for communications.
To the obvious example first, you will all be aware that earlier this month, we announced that the Government will invest with the private sector to build the new National Broadband Network.
Additionally, we will consider a range of regulatory reforms to improve competition and service during the rollout period.
The National Broadband Network will be the single largest nation-building infrastructure project in Australian history.
The network will connect 90 per cent of all Australian homes, schools and workplaces with fibre broadband with speeds up to 100Mbps - 100 times faster than those currently used by many households and businesses.
All other premises will be connected with next generation wireless and satellite technologies delivering broadband speeds of 12 megabits per second.
This exceeds our election commitment by ensuring high-speed broadband for all Australians, no matter where they choose to live or work.
To meet these requirements we have flagged the rollout of new satellites and an entirely new next-generation wireless network.
Clearly in Australia, wireless services play a very important role and this will certainly continue to be the case for broadband in the future.
Importantly in the current economic climate, the National Broadband Network will support up to 25,000 local jobs every year, on average, over the 8 year life of the project.
At the height of construction this figure will peak at 37,000 people.
Negotiations have begun with the Tasmanian Government and indications are that construction of the network in Tasmania could start as early as June or July this year.
In addition, we have begun a consultation and will soon begin a competitive tender process to construct $250 million worth of backhaul links in regional Australia.
These investments are intended to spur competition and encourage the launch of new broadband services in regional locations in the short term.
The National Broadband Network will be Australia's first national wholesale-only, open access broadband network.
It will be built and operated on a commercial basis by a company established at arm's length from Government and involve investment by the private sector.
I note that industry has already given positive indications about the appeal of the opportunity,
The National Broadband Network is a transformational project for the sector and will provide the foundations for productivity and efficiency across the economy.
Of course, while this is a crucial project, the National Broadband Network is not the only measure necessary to underpin Australia's communications future.
The Government is also addressing the necessary wireless and spectrum issues that will enable our nation to move confidently into the next phase of the connected economy.
There is no doubt about the complimentary nature of wireless and fixed line communications.
In fact, this is clearly demonstrated in our vision for the National Broadband Network.
Equally, mobile broadband offers many benefits for users to access services and applications wherever they choose.
Indeed, the ability to switch between fixed and wireless networks is becoming increasingly commonplace in mobile devices such as PDAs and laptop computers.
One vital component to support this utility for either network environment, is the availability of backhaul data capacity.
Backhaul will be a major part of the National Broadband Network and, as mentioned, is a priority for the Government in regional areas.
Taking action today to create the foundations of our future wireless and fixed communications sectors, will help deliver better outcomes for industry, business and consumers in the years to come.
Recognising future trends and spectrum requirements for emerging and existing wireless services is vital.
It is important that industry have the certainty they need to plan for their future and the development of new services.
As I said at this same conference last year, Australia's future prosperity will be closely linked to our success in harnessing the potential of spectrum.
It is worth noting that in the past year the Rudd Government has been taking decisive action to ensure Australia is not left behind the world on key spectrum issues.
I'm particularly pleased with the progress the Australian Communications and Media Authority has made in relation to the 3.6 gigahertz and 400 megahertz bands.
3.6GHz band
ACMA's proposed release of spectrum in the 3.6 gigahertz band is designed to support the introduction of competitive broadband wireless services in regional and remote areas of Australia.
Clearly this links well with the Government's regional backhaul investments and the requirement for improved broadband in regional areas.
Broadband has the potential to revitalise our regions, provide new job opportunities, drive efficiency and improve the delivery of social services.
In preparation for the allocation of 3.6 gigahertz licences later this year, ACMA has released a discussion paper and is seeking feedback on proposed technical and regulatory policy options.
I encourage anyone with an interest, including those in the room today, to respond.
400MHz band
The 400 megahertz band is one of the most important and heavily-used parts of the radio spectrum.
It has some 6,000 licensed users.
This spectrum is used to support a range of transport and dispatch activities, as well as vital public services, including emergency services.
The ACMA review of the 400 megahertz spectrum band presents a unique opportunity to improve emergency service and law enforcement radio-communications.
ACMA has officially proposed the sub-band 403 to 430 megahertz for exclusive government use.
The harmonisation of police, ambulance and emergency services radiocommunications across state borders has been a long-standing goal.
The review of the spectrum infrastructure required to do this is a once-in-a-generation opportunity.
Common spectrum allocation would ensure government users can operate on compatible frequencies.
However, harmonised spectrum arrangements alone do not lead to a complete interoperability solution.
Broader support, guidance and commitment from Australian governments and individual government agencies are essential for comprehensive interoperability objectives to be realised.
ACMA's review of the 400MHz spectrum band presents a nation-building opportunity to improve emergency services and law enforcement intercommunications.
I urge all relevant agencies and the state and territory governments to focus on ACMA's proposals and use the submissions process to identify and explore all relevant issues, and work towards increased interoperability.
It is hoped, that as a result of these efforts, we may see emergency service and law enforcement radio-communication users across Australia able to cooperate and collaborate more closely via wireless.
Strong demand for spectrum
One thing that certainly hasn't changed since last year's conference is the continuing demand for spectrum.
Wireless access growth is a big deal globally, and, like the rest of the world, Australia is experiencing a mobile broadband boom.
According to Ovum, 3G connections in Australia are set to increase from 40 per cent in June last year to 90 per cent of all mobile phone connections.1
3G technologies such as High Speed Packet Access, or HSPA, are dominating the wireless broadband market in Australia.
Major carriers including Telstra, Optus, Vodafone and Hutchison are rolling out to a network footprint of up to 99 per cent of the population.
Many people now have almost complete connectivity - fixed broadband at the office and home, a 3G connection for the laptop or netbook, and a 3G mobile.
The Rudd Government is committed to developing that connectivity to world-leading standards.
To do this we are likely to require spectrum in larger allocations than we have ever seen before to enable platforms such as Long Term Evolution technology.
These requirements will require careful consideration to ensure Australia reaps the rewards of new developments and the potential of wireless networks in the future.
Digital dividend
These considerations are clearly related to our spectrum assets and how to provide certainty to different interests throughout the sector.
One of the major implications of the digital television switchover is its potential to free spectrum from analogue television for new purposes.
This is commonly known as the digital dividend.
When analogue television is switched off, the Government will reform the use of radio frequency broadcasting spectrum.
Broadcasters will change some of the frequencies they currently use so that a significant amount of the spectrum will become available for other uses.
This will be an important microeconomic reform that will boost productivity in the Australian economy.
It will facilitate the entry of new service providers and new technologies, including wireless broadband, and the ongoing convergence of the communications and broadcasting markets.
As you are all aware, the Government's decision on the dividend is not one that is being taken in isolation.
The United States has already identified and auctioned its digital dividend of 108 megahertz.
The European Union is facing some very interesting developments following decisions by a number of members states to allocate the 790 to 862 megahertz band for primarily mobile broadband services.
In particular, France has announced that this band will be allocated for broadband services to cover 100 per cent of the population.
Germany, Sweden, Switzerland, Finland and Slovenia have all either allocated the band for mobile broadband or have indicated they are considering doing so.
The United Kingdom, having already announced a dividend of 112 megahertz, is now reconsidering alignment issues that would increase its total size.
An announcement on this is expected at the end of this year.
Canada is moving quickly towards realising its dividend at analogue television switch-off in 2011, and has identified 108 megahertz of UHF spectrum for sale.
Closer to home, the New Zealand Government believes that it can release at least 80 megahertz of UHF spectrum, while Japan is planning to reallocate 60 megahertz of UHF spectrum.
Australia's dividend
It is important that Australia is part of the international reform.
It will align our future use of the spectrum with that of the major countries and allow Australia to acquire and utilise the latest communications equipment at least cost.
The benefits from positioning Australia in this way will flow beyond the communications sector to the broader economy.
It's important to note that the Government does not see the digital dividend as a telecoms versus broadcasting debate.
The digitisation of television offers a number of advantages and one of the biggest is the opportunity to test whether we are using this prime spectrum in the best way.
Importantly, we will do all of this in the context of what is best for Australian citizens while recognising the legitimate interests of industry players.
It is also important to note that the digital dividend is not about revenue to the Budget.
The true value of the digital dividend lies in the economic and social benefits of the services that it can support.
My colleague, the Minister for Finance, can be forgiven in the current economic climate for focusing on the Government's bottom line.
However, Mr Tanner noted recently at the National Press Club how the mobile phone has had an extraordinary positive impact on productivity.2
The Australian Mobile Telecommunications Association has been conducting work in this area.
In a report I believe to be very close to release, AMTA has indicated that the allocation of the digital dividend for mobile services would provide direct benefits to the Australian economy of more than $10 billion over a 20-year period.
Given these economic benefits, it is only right that the Government give close consideration to this once-in-a-generation spectrum opportunity.
Progress & next steps
You will also be pleased to hear that significant progress has been made on the issue of the digital dividend over the past year.
A number of you will be aware of all the digital switchover developments including the announcement of the switchover trial in Mildura and our switchover timetable culminating at the end of 2013.
The Government, the Department and ACMA have also been putting together information and a framework to guide decisions on the size and allocation of the digital dividend.
We have also been talking to stakeholders and getting economic and technical advice.
There is still much to do but the pieces of the solution are beginning to become clear.
Recognising the importance of this issue, the Rudd Government is preparing a green paper on the digital dividend.
The green paper will seek comment on issues such as the potential uses of digital dividend spectrum.
Importantly, it will ask about what potential benefits these uses provide to the Australian community and economy.
The green paper will also seek comment on the costs of realising a maximised dividend to broadcasters, television viewers and other users of the spectrum.
Responses to the green paper will help to inform Government decisions on the final size and location of Australia's digital dividend.
Finally, I'd just like to touch briefly on two other spectrum issues: the 15-year spectrum licences, and the 2.5 gigahertz band.
15-year spectrum licences
Australia has been a world leader in wireless communications and we need to plan ahead to retain our leadership.
Mobile phones and wireless broadband have changed people's lives and it is important that industry have the best chance to plan and develop future services.
Last week I issued a discussion paper on re-issuing 15-year radiofrequency spectrum licenses.
The discussion paper examines a range of issues and calls for comment on the re-issue of licenses in the 800MHz, 1800MHz, 2.1GHz, 2.3GHz and 3.4GHz spectrum bands.
The licenses include those relevant to the delivery of 2G and 3G mobile phone and wireless broadband services.
Wireless spectrum is a valuable public asset that supports a range of services of great importance to consumers, business and the telecommunications industry.
While key licenses do not begin expiring until 2013, spectrum license re-issue requires major Government policy decisions.
There are complex issues that will take some time to assess.
But work has already begun and I expect that the Government will be making decisions over the next 12 months on this important matter.
2.5 gigahertz
As most of you are aware, the 2.5 gigahertz band is currently apparatus-licensed in Australia to the three commercial free-to-air television networks and the ABC.
These organisations use the spectrum for electronic news gathering and outside broadcasts.
The 2.5 gigahertz band is sought after by potential wireless service providers because of its wide bandwidth and the high level of international harmonisation of this band for broadband wireless access services.
Current licensing arrangements in Australia only authorise its use for electronic news gathering.
There are questions as to whether this is the best use.
There are also questions as to whether the current licence fees paid by broadcasters necessarily reflect its value and whether Australia is out of alignment with international use of this band.
ACMA's assessment is that the current planning, licensing and pricing arrangements in the band are unlikely to support its efficient allocation and use into the future.
To address this issue while ensuring that broadcasters continue to have access to suitable spectrum for news gathering and outside broadcasting, ACMA has been working closely with broadcasters to determine their future spectrum requirements.
The work is part of a larger review of arrangements in the 2.5 gigahertz bands, which was announced in October last year.
Its scope is not only the future of 2.5 gigahertz but also other bands identified as potential long-term locations for electronic news gathering.
This includes 2.1 and 2.3 gigahertz as well as parts of the current 2.5 gigahertz allocation.
ACMA intends to release a public discussion paper canvassing these issues in coming months.
The Rudd Government is committed to finding the right balance between the needs of incumbent broadcasters and potential wireless services, and ensuring long-term solutions are found to address broadcaster needs.
Present incumbents of the 2.1 and 2.3 gigahertz bands also need to be in the picture.
It is in the wider national interest that there is early agreement on the future of 2.5 gigahertz and I encourage industry to work cooperatively with ACMA and with one another for the best possible outcome.
Conclusion
As I have said, wireless spectrum is an important national infrastructure asset.
It is of vital importance as we plan and build the foundations for our future communications sector and the economy as a whole.
Reform of spectrum management is an international trend and it is important that Australia is part of that process.
The Government is taking action on these important matters to ensure certainty for industry, allowing them to plan for the future.
Our action is also being taken with the clear goal to ensure the best outcome for citizens and that they have the best possible opportunity to access important technology and service innovations in the future.
Thank you.
- Ovum '3G in Australia: Operator Strategy and Market Status' November 2008, p. 5.
- Tanner, Press Club, 11 March 2009 Address to the National Press Club of Australia
"You know, if you want to know what's increased productivity across the world, this thing. We will look back - those of us who are still here - in 50 years time, and call this period of human existence the era of the mobile phone. Had extraordinary impact on productivity. Extraordinary impact. The internet, obviously, equally. But, the internet and the mobile phone, they're becoming the same thing."
