Good morning.
I would like to acknowledge the Gadigal People of the Eora Nation as the traditional custodians of the land on which we meet today. I pay my respects to their elders past, present and emerging.
This is my first CommsDay speech as the ACMA Chair since commencing in the role in October last year. Thank you to Grahame and Petroc for this opportunity.
As many of the speakers at this conference have already mentioned, we are at a profound moment in the history of communications and media in Australia. In the not-too-distant future, we will be seeing the completion of the NBN rollout and the introduction of 5G mobile services, underpinning greater connectivity than ever before.
Today, I would like to discuss briefly some of the challenges and opportunities—for the industry and for the ACMA itself—in the current and future environment. I will focus on how we are progressing with implementing reforms agreed by the government following the ACMA Review, our NBN consumer experience work and then an update on our work to support the rollout of 5G through the 3.6 GHz auction.
ACMA Review—implementing the recommendations
It is now almost a year since the release of the Review of the ACMA. The review strongly supported the ongoing need for a communication and media sectoral regulator. It made a range of recommendations, all agreed to by the government, to ensure that the ACMA is a modern, agile and responsive ‘fit-for-purpose’ communications regulator.
I am pleased to say there has been some good headway, with many of the recommendations now transitioned to business-as-usual or close to completion. In my discussions with industry and government over the last few months, I have also gained valuable insights into your views about the ACMA, where we are strong and where we need to improve.
The government has recently announced the appointment of new full-time Authority Members—Creina Chapman as Deputy Chair; two new full-time Members, Chris Jose and Fiona Cameron, and the reappointment of James Cameron as full-time Member for a further three years.
I am looking forward to welcoming the new Members, and working with them and our part‑time Members, to realise the vision set by government for the ACMA post-review.
For me, perhaps the most critical recommendation in the review is that the ACMA’s remit should cover all the layers of the communications market, including infrastructure, transport, devices, content and applications.
This does not mean that we will intervene in these areas, but it challenges us to be well‑informed so that we are able to judge whether and how to intervene when issues of concern arise.
An early example of us operationalising our new remit has been our response to having a bigger role in overseeing the online gambling laws set down in the Interactive Gambling Act 2001. This includes new powers to enforce prohibitions on gambling companies providing or advertising illegal interactive gambling services and enforcing civil penalties for breaches of the Act.
This area presents a particular logistical challenge for us as the majority of online gambling services are based offshore. In response, we have built strong ties with foreign regulators and developed a high international profile, and we have seen many offshore operators leave the Australian market.
We have targeted key stakeholders involved in providing a gambling service—not just the gambling operators themselves, but also other parties that can influence their activities. This includes third-party suppliers such as software providers and payment processors, as well as regulators in the operator’s licensing jurisdiction.
This approach has proven to be effective so far, with a number of third-party suppliers implementing measures to restrict their services being used by customers in Australia, either through their contractual relationships with the gambling operators or through technical fixes.
Under recently enacted powers, the ACMA will also be creating new rules to prohibit gambling advertising during the online supply of live sports coverage. This power enables broadly common restrictions to apply to traditional broadcasting and new online streaming services. It reflects an increasing community view that such services are substitutable.
Online gambling may be a current challenge but it is really just another form of online content of concern to consumers. My colleague the eSafety Commissioner deals with a range of other online content, particularly in areas such as protection of children from harm.
Online content and applications, operating outside national jurisdictions, are not easy for regulators anywhere to deal with. Like other regulators, we have predominantly pursued combinations of cooperation, persuasion and local blocking or filtering measures to impede access to problematic content.
But consumers also increasingly expect us to address issues of concern in more effective and nuanced ways as online content and apps become more and more central to the way they access information and services. The recent consumer response to the use of Facebook users’ data suggests that consumer complacency about the way such services operate is becoming a thing of the past.
So we will need to find new and innovative approaches, working with domestic and international regulators and with industry, to deal with problematic online content and applications—particularly for services that have the collection of consumer data at the heart of their business model.
In that regard, the ACCC’s inquiry into the impact of digital platforms on competition in media and advertising services markets is timely. In particular, I welcome its examination of the impact of these platforms on the supply of news and journalistic content—given the critical role that content plays in our nation’s civic life. We will be working closely with the ACCC on its investigation and also considering our own approaches to digital platforms and services, given our own regulatory remit.
Migrating to the NBN—the consumer experience
In terms of immediate challenges, I think we can all agree in this room one we all face is the rollout of the NBN.
The sheer scale and speed of the rollout of the network, the more complex supply chain, heightened consumer expectations about their communications services in general (not just NBN-based services) and the uniqueness of the Australian market presents real challenges for industry.
The ACMA recognises these challenges. But we also want to make sure that the future opportunities of the NBN are fully realised by all Australians.
The ACMA has been conducting extensive research and industry scanning to better understand the experience of consumers as they move from their existing services to those provided over the NBN. And while the majority of people migrating have a good experience, our research indicates areas that are particular ‘pain points’ for consumers that need to be addressed as we enter NBN Co’s peak rollout period.
Our analysis shows that there are three big areas of concern for people moving to the new network:
First, when signing up to move to the NBN, some people don’t have all the information they need to choose the service that best suits them.
Last week, we released a sweep report on Critical Information Summaries, which showed that industry was highly compliant and providing good information around the price of services.
But our residential research showed that, of households with internet connected to the NBN in the last 12 months, only around half with a broadband service knew what speed their household needed. It also indicated that some were not aware of other unique characteristics of NBN services—such as how they are affected in power outages. Not all those with medical alarms are aware they should register them with NBN Co to avoid a disruption to their service.
Second, some people find their new NBN-based service doesn’t work and their old service has been disconnected, so they are left without any service.
Our residential research showed that as many as one in three households have been left without their service when moving to the new network. For some, this is an interruption of less than 24 hours but our research shows that for nearly one in 12 households the interruption is two weeks or more.
I would note that this finding does not correlate well with data held by RSPs and from NBN Co, and we are digging further into the reasons for these differences. However, our concern remains that people can be left without any service during the migration process.
And third, complaints often take too long to resolve and no one takes responsibility, with complaints being handballed between RSPs and wholesale providers and NBN Co. I would have to say, if you listen to talkback radio (or appear on it as I have done), this is probably the issue that most irritates consumers (and talkback hosts as well!).
Our residential research showed that about one in three households had made a complaint to their current or previous telco. Most commonly, the reason for the dissatisfaction was the length of time to fix the problem or take action.
And consumer dissatisfaction with complaints-handling is not confined to complaints about services delivered over the NBN. Only this week, the Telecommunications Industry Ombudsman Judi Jones was widely reported as confirming that ‘the majority of our complaints stem from the legacy network’.
In response to these issues, we are introducing a package of new rules with a focus on improving consumers’ experience when moving to and using services delivered over the NBN.
Our intention is that this package of rules will ensure that consumers:
- have the information they need to make informed choices about the NBN service that is right for them
- have the confidence that their new service will work, and will work as promised
- have options if issues arise that mean their new service will take more time to work than planned
- have their complaints heard and addressed effectively.
The first part of this package was released for consultation in mid-March and covered complaints-handling and record-keeping rules. Today, I can announce the release for consultation of the second part of this package, which covers essential information to be provided to consumers, line-testing and service continuity requirements.
Together these rules will require telcos to:
- specify the minimum information that telcos must provide to consumers
- ‘line-test’ new services to ensure that lines are working and that faults are identified early
- reconnect consumers to legacy network services where readily feasible if a consumer is unable to get a working service over the NBN network
- comply with minimum standards for handling of consumer complaints
- report data about the complaints they receive to the ACMA so these can be monitored.
These new rules will be immediately and directly enforceable by the ACMA, and they will be in place by the end of June.
The ACMA recognises that, while the cause of some of the problems experienced by consumers sits with retail telcos, the cause of others may lie further up the supply chain.
We are aware that, at the wholesale level, NBN Co is working to improve the customer experience. Last month, NBN Co began reporting against metrics related to network performance, service installation and fault restoration. At the retail level, there are signs that service providers are working hard to improve their service offerings to consumers, with revised pricing plans and release of innovative dual-mode modems.
We are also working to ensure that our work is complementary to efforts across the supply chain, including:
- the ACCC’s inquiry into NBN Co’s wholesale service standards, announced last November
- revised wholesale pricing arrangements announced by NBN Co in December
- the ACCC’s program to monitor broadband speeds as experienced directly by consumers. The first Measuring Broadband Australia report, released just before Easter, provides encouraging results in relation to peak-period speeds.
And the ACMA has further work in the pipeline, including testing whether the quality of modems being provided to consumers is impacting on their experience of their NBN service.
I look forward to engaging with industry as we seek to design and implement rules that are fit-for-purpose and deliver for consumers.
Now, to spectrum—5G
The future opportunities of the NBN are complemented by those provided by new mobile technologies, such as through the rollout of 5G. And those technologies require spectrum.
Spectrum has become a key enabler of the digital economy. It paves the way for a future Internet of Things connected by 5G, by LoRa technology, by terrestrial or by satellite wireless links. These developments anticipate a future where, as some pundits propose, ‘data is the new oil’ and traditional telcos are competing with a host of new market entrants to provide the pipes for that oil.
Demand for spectrum to support wireless broadband continues to be a major driver for changes in highest-value spectrum use across a number of bands—with mobile broadband continuing to be the largest contributor.
We have an ambitious spectrum reform program set out by government that signals an important shift away from prescriptive primary legislation, while putting the ACMA at the forefront of implementing future reforms and spectrum management.
It means simplified provisions, including no legislative distinction between kinds of licence, fewer statutory licence conditions, streamlined equipment regulation, graduated interference management and enforcement powers.
And there’ll be a greater ability for third parties to manage spectrum, to settle interference concerns and to choose how to use licensed spectrum with less regulator involvement.
Our prime goal is to ensure that spectrum management maximises the economic and social benefits and opportunities that these technologies can deliver to all Australians.
Claims that 5G will accelerate a ‘fourth industrial revolution’ through the internet, and promises of what 5G connectivity will be able to deliver to health, transport and agriculture, are all contributing to the unprecedented government-wide attention being paid to 5G.
However, as a note of caution in our collective enthusiasm, I think it is fair to say that industry still needs to find the business case to support its investment in the rollout of 5G networks. And I think there is a danger that consumers will be confused by industry’s marketing efforts and may think they should wait for 5G rather than moving to already available 4G services—a particular risk when 4G coverage is still rolling out to match that of 3G.
With that said, I would like to give you an update on our planning for release of spectrum for 5G and other services.
Following the issue of reallocation declarations for the 3.6 GHz band by Minister Fifield early last month, we’re now forging ahead with preparations for an auction of the band—known as the ‘pioneer’ or ‘frontier’ band for 5G—in October.
The ACMA’s spectrum reallocation recommendation to the minister followed an extensive review process, which started in late 2016. The review found that the public benefit of the 3.6 GHz band moving to a new use was greater than the cost to existing band users of providing their services without access to the band.
Today, the ACMA and industry stakeholders are coming together to discuss the auction format that will be used. Next month, the ACMA will release draft legislative instruments that will set out the spectrum auction product as well as the auction rules.
In addition, registered bidders will be provided with the opportunity to participate in mock auctions to allow them to familiarise themselves with the auction system. We expect these mock auctions to occur in early October.
It is worth reiterating that the ACMA is not just planning for 5G. By pursuing a wider strategy and work program about the spectrum being made available for wireless broadband, our aim is to hand to industry the freedom to decide which generation of technology to deploy, in which band and at what time.
With this freedom comes responsibility. We will increasingly look to the holders of this valuable spectrum to make the most of it themselves. It means ensuring the secondary market delivers in the trading and consolidation of spectrum holdings that are seriously fragmented and therefore underutilised.
Demand for spectrum in most, if not all, bands sought by mobile network operators is contested. And the case for reallocating spectrum away from other users to mobile broadband is weakened when there are current holdings that can be more efficiently utilised. Secondary market trading to achieve more efficient holdings is not necessarily easy or quick—it will need industry to take a lead and it will require market participants to identify common objectives. But a sector hungry for new spectrum will be more effective in demonstrating the case for those difficult changes when they can show that they are optimising their current holdings as a whole.
And you don’t have to look very hard to see a few potential opportunities for such consolidation in existing wireless broadband allocations both below 1 GHz and higher in the mid-band around 3.5 GHz.
The other major 5G-related focus for the ACMA is in the millimetre wave range around 26 GHz. The likely use of this band for broadband purposes, especially mobile, is breaking new ground globally.
This is one area where the ACMA has committed its spectrum planning engineering expertise to contribute to global spectrum-sharing considerations being undertaken within the framework of the International Telecommunication Union.
We have been at the forefront of developing and contributing detailed technical sharing analysis between potential 5G broadband and satellite systems.
Domestically, the 26 GHz band is attractive as an early band for millimetre wave 5G because of relatively low incumbency issues and its increasing attention globally, for example, by Europe and China, as an early 5G band.
I expect the ACMA will be saying more on the 26 GHz band potentially around mid-year.
We’ll also be releasing a draft version of our Five-year spectrum outlook soon for industry comment—previously, this paper has been released in its final form in the second half of the year—which outlines our approach, planning priorities and strategy behind our spectrum management program.
So again, thank you to CommsDay for the opportunity to address you today and provide an update on the current challenges and future opportunities we see for the sector.
In closing, I would just like to reiterate that communications technologies present enormous opportunities for economic growth and social inclusion. Collectively, all of us in this room need to address challenges as they arise to ensure that we maximise those opportunities for all Australians.
Thank you.