Preliminary Pages
Foreword
There can be no doubt about the utility of international
mobile roaming, a service that allows you to use your own phone and phone
number wherever you are in the world.
The utility of roaming was recognised by many of the participants
to the inquiry. The Consumers’ Telecommunications Network said the following
at the public hearing in Sydney on 28 November 2008:
…the expectation these days is to be able to be contacted.
People want to take their phones with them, but they do not want to do that at
the expense of getting a shock when they come back.
As is clear from this statement, roaming is also known for
its cost. During the inquiry, the Committee was confronted with evidence of
international mobile roaming bills in the tens of thousands of dollars.
The Committee found that there were two apparent reasons for
the high cost of mobile roaming.
The first has to do with how costs are attributed. Roaming
is supported by a complex technical treatment of calls to and from roamed phones.
This treatment means that the cost of making and receiving calls is higher for
roamed calls.
The most obvious example of this is the approach to
receiving calls. In the regular use of mobile phones, the recipient of a call
is not charged. However, if the recipient is using roaming, they will be
charged for the international leg of any calls they receive.
To enhance consumer understanding of roaming costs, the
Committee recommends that the:
n Australian
Communications and Media Authority facilitate a meeting of the Communications
Alliance to discuss the development of a minimum standard for consumer
information and awareness on roaming and potential costs; and
n Australian Government
explore opportunities to collaborate with the Australian Telecommunications
Users Group’s ‘Roam Fair’ campaign.
The second apparent reason has to do with the power of
Australian providers in negotiations with overseas providers over the provision
of roaming services. Australian providers do not appear to have the customer
base to negotiate competitive prices for roaming services.
The Committee believes this situation is best overcome
through a policy of regulating the framework for the wholesale cost of roaming
through bilateral and multilateral negotiations with other countries, ensuring
that countries with the largest number of Australian visitors are given
priority.
In an effort to improve competition between Australian
providers, the Committee recommends that the Australian Communications and
Media Authority develop, through the Communications Alliance, an amendment to
the Code on mobile number portability to allow temporary mobile number
portability for roaming services.
While there are a number of other ways in which travellers
can remain in touch, none of these has the utility of roaming. Nevertheless,
the Committee believes that with careful planning most travellers can find an
alternative that offers some of the utility of roaming at less cost.
In order to ensure travellers are aware of the alternatives,
the Committee has recommended they be incorporated into information on roaming
provided by the Australian Government.
Ms Belinda
Neal MP
Chair
Membership of the Committee
Chair
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Ms Belinda Neal MP
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Deputy
Chair
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The Hon Mark Vaile MP (untill 26/8/08)
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Mrs Kay Hull MP (from 26/8/08)
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Members
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The Hon Bruce Billson MP
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Mr David Bradbury MP
|
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Ms Julie Collins MP
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Mr Steve Georganas MP
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Mr Steve Irons MP
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The Hon Peter Lindsay MP
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Ms Kerry Rea MP
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Ms Amanda Rishworth MP
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Committee Secretariat
Secretary
|
James Rees
(until 16/6/08)
Siobhán Leyne
(until 8/9/08)
Russell Chafer
(until 21/11/08)
Jerome Brown
(from 24/11/08)
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Inquiry
Secretary
|
Kevin Bodel
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Research
Officers
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Geoff Wells
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Administrative
Officers
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Dorota Cooley
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Emma Martin
(from 15/9/08 to 18 /12/08)
Claire Young
(from 2/7/08 to 12/9/08)
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Terms of reference
The Committee is to inquire into and report on:
- The extent to which retail international mobile roaming charges for both voice and data services reflect the underlying costs to operators
of suppling the service.
- The adequacy of information available on Australian mobile operators' international mobile roaming costs and revenue in both retail and wholesale
markets.
- The impact of new and emerging technologies and commercial
initiatives that may reduce international mobile roaming charges for users
or provide a substitute for international mobile roaming services.
- The adequacy of existing information from mobile operators available to consumers concerning international mobile roaming charges for users.
List of abbreviations
ACCC
|
Australian Competition and
Consumer Commission
|
ACMA
|
Australian Communications and
Media Authority
|
AMTA
|
Australian Mobile
Telecommunications Association
|
APEC
|
Asia Pacific Economic Cooperation
group of nations
|
ATUG
|
Australian Telecommunications
Users’ Group
|
CTN
|
Consumers’ Telecommunications
Network
|
DBCDE
|
Department of Broadband,
Communications and the Digital Economy
|
EC
|
European Commission
|
ERG
|
European Regulators’ Group
|
EU
|
European Union
|
GSM
|
Global System for Mobile
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ICN
|
International Competition Network
|
ITU
|
International Telecommunications Union
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OECD
|
Organisation for Economic
Cooperation and Development
|
SIM
|
Subscriber Identity Module
|
SMS
|
Short Message Service
|
IOT
|
Inter Operator Tariff
|
VoIP
|
Voice over Internet Protocol
|
List of recommendations
4 Regulation of international mobile roaming
Recommendation 1
The Committee recommends that the Australian Government pursue
a policy of regulating the framework for the wholesale cost of roaming through
bilateral and multilateral negotiations with other countries, ensuring that
countries with the largest number of Australian visitors are given priority.
Recommendation 2
The Committee recommends that the ACCC introduce reporting
requirements for international mobile roaming services on Australian providers.
In particular, the Committee recommends that cost, revenue and service usage
information should be provided.
Recommendation 3
The Committee recommends that the:
n Australian
Communications and Media Authority facilitate a meeting of the Communications
Alliance to discuss the development of a minimum standard for consumer
information and awareness of roaming and potential costs; and
n Australian
Government explore opportunities to collaborate with the Australian
Telecommunications Users Group’s ‘Roam Fair’ campaign.
Recommendation 4
The Committee recommends that the Australian Communications
and Media Authority develop, through the Communications Alliance, an amendment
to the Code on mobile number portability to allow temporary mobile
number portability for roaming services.
5 Alternative services to international mobile roaming
Recommendation 5
The Committee recommends that when an Australian Government
agency provides information to the public on roaming, the alternatives to
roaming be included as part of the information. These alternatives should
include:
n international calling
cards;
n short Message
service;
n use of local
networks;
n email; and
n use of hotel
telephones.