RECOMMENDATIONS
The Committee recommends Telstra remain in full public ownership.
The Committee recommends the Telstra (Dilution of Public Ownership) Bill 1996
be divided into two bills:one concerning the proposed sale; the other
concerning the Customer Service Guarantee.
The Committee recommends Telstra not be structurally separated.
The Committee recommends that if the Parliament passes the Bill, contrary
to the recommendations of this report, the Section 9 power of the Minister
to direct the Telstra Board in the public interest be retained.
The Committee recommends the environment programs of the Government be
funded from recurrent expenditure or a proportion of Telstra's profits,
not from the partial sale of Telstra.
The Committee recommends the continuation of the current industry development
arrangements, noting the importance of sustaining an export oriented manufacturing
sector to offset imports of telecommunications technologies. The Committee
notes the likelihood that the that the value of such arrangements will
be substantially eroded if Telstra is privatised.
The Committee recommends the Telecommunications Industry Development Authority
be retained and its monitoring arrangements be strengthened.
The Committee recommends the commitment of Telstra to strategic research
and research sponsorship be retained.
The Committee recommends the Government closely monitor Telstra management's
handling of the Telstra Research Laboratories with an eye to the fact
that they are a national asset, built up through national savings, which
provide a pivotal and strategic role in Australia's intellectual infrastructure.
The Committee recommends Telstra be retained in full public ownership
to ensure that it may continue the nation building role which it has fulfilled
to date, not only in the delivery of services but in the stimulus its
presence as an employer has given to regional economic development.
The Committee recommends the public interest in creating and retaining
employment in Australia, especially in regional areas, be given due weight
in Telstra's organisational decisions. The Committee opposes decisions
which would see Telstra's operations relocated offshore in the name of
“efficiency”.
The Committee recommends that Telstra's employment levels be determined
on the basis of operational needs, rather than on “headcount”
targets.
The Committee recommends Telstra operations be resourced up to a level
which allows for ongoing improvement in customer service quality.
The Committee recommends the Standard Telephone Service Review Group consider
an immediate upgrade of the standard telephone service to a 64 kbps service.
The Committee recommends regular reviews of the Universal Service Obligation
be guaranteed in legislation.
The Committee recommends the provision of high quality telecommunications
services to rural and remote areas be made available through a publicly-owned
Telstra as a high priority.
The Committee recommends provision of new technologies to people with
special needs be included as part of the Universal Service Obligation.
The Committee recommends the Universal Service Obligation continue to
be funded by the carriers rather than from consolidated revenue.
The Committee recommends mandatory registration of service providers be
introduced as part of the post-1997 environment.
The Committee recommends the Government confirm that critical issues of
consumer concern, especially privacy, be handled through legislation and
not through codes of practice.
The Committee recommends that prior to enacting legislation to introduce
the Customer Service Guarantee, the Government should establish a working
party including representatives of each of the carriers, the Telecommunications
Industry Ombudsman, AUSTEL, Australian Telecommunications User Group,
Consumers' Telecommunications Network, the Australian Consumers' Association
and the Communications Law Centre, for the purpose of formulating more
satisfactory legislative provisions concerning the Customer Service Guarantee.
The working party should include the following in its considerations:
- the amendments to clauses 87F, J and H proposed
by the Telecommunications Industry Ombudsman;
- an amendment to ensure that the Customer Service Guarantee applies
to service providers as well as to carriers;
- extension of the Customer Service Guarantee to cover items such
as network upgrades, network congestion, transmission, signal quality,
connection reliability, billing accuracy and operator-assisted services;
- a provision in the Bill ensuring regular reviews of the Customer
Service Guarantee; and
- an amendment to ensure the Australian Communications Authority
may, of its own volition (ie without the necessity for any Ministerial
direction), establish performance standards other than those specified
in the Bill.
The Committee recommends codes of practice for consumer protection be
mandatory for all carriers and service providers.
The Committee recommends legislation be drafted to provide for consumer
representation on a full voting basis, at all stages of development of
codes of practice.
The Committee recommends time limits be clearly set out for the development
of codes of practice. These time limits should allow for adequate public
input and consumer consultation. As a minimum, all codes should be finalised
and approved by AUSTEL by 1 July 1997. Otherwise, AUSTEL should
be empowered to immediately intervene and develop codes.
The Committee recommends AUSTEL, and its successor, the Australian Communications
Authority, be given additional arbitration powers and take a more proactive
role in monitoring the effects of cable rollouts.
The Committee recommends the new Telecommunications National Code be established
as soon as possible, based on the principle recommended by this Committee,
that carriers will no longer be exempt from State, Territory and local
government legislation.
The Committee recommends Part 7 of the Telecommunications Act
be amended as soon as possible to remove carriers' exemptions
from State, Territory and local government environment and planning laws.
The Committee recommends, as part of the new Telecommunications National
Code, under which carriers are no longer granted exemptions, carriers
be required to provide local councils with earlier advice on rollout timetables,
to provide sufficient detail of programs to allow proper assessment of
impacts, coordination of works, and community consultation.
The Committee recommends it be made mandatory that the removal of obsolete
cabling be at the cost of the installing carrier.
The Committee recommends the Government urgently review the strategy of
allowing dual Hybrid Optical Fibre/Coaxial cable rollout, particularly
having regard to evidence that such networks will be obsolete within a
decade.
The Committee recommends the Government develop a long-term national program
to relocate all existing overhead cables in Australia
underground.
The Committee recommends the Government legislate for all future cable
installations to be underground.
The Committee recommends the Government immediately take action to ensure
the carriers enter into negotiations with a view to arriving at an arrangement
whereby the carriers in future combine their competing broadband cable
systems into one national network.
The Committee recommends as a minimum, co-location of cables be mandated
wherever it is technically feasible.
The Committee recommends that a levy be raised from telecommunications
and other industry contributors responsible for electromagnetic radiation
(EMR) emissions to finance independent research into public health issues
concerning EMR.
The Committee recommends that no further mobile phone towers and bases
be constructed in proximity to kindergartens, schools and hospitals, and
in any location where people may be at risk from long-term exposure to
electromagnetic radiation (EMR), until further research is undertaken
that shows there is no risk to public health.
The Committee recommends if, contrary to the recommendations of this Committee,
the Parliament passes legislation to sell one-third of Telstra, the sale
should be delayed until December 1998 at the earliest or at least 18 months
after the post-1997 regulatory arrangements are in place.