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ACMA Communications Report 2005–06 © Australian Communications and Media Authority 2006 Australia’s regulator for broadcasting, the internet, radiocommunications and telecommunications www.acma.gov.au ACMA Communications Report 2005–06 © Australian Communications and Media Authority 2006 ISSN 1834-1519 This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be produced by any process without prior written permission from the Australian Communications and Media Authority. Requests and enquiries concerning reproduction and rights, and any enquiries arising from the contents of the report should be addressed to: Manager Review and Reporting Australian Communications and Media Authority PO Box 13112 Law Courts Melbourne VIC 8010 Telephone: (03) 9963 6800 Facsimile: (03) 9963 6899 Email: [email protected] This report is available on the ACMA website at www.acma.gov.au/CommsReport ACMA Communications Report 2005–06 © Australian Communications and Media Authority 2006 ISSN 1834-1519 This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be produced by any process without prior written permission from the Australian Communications and Media Authority. Requests and enquiries concerning reproduction and rights, and any enquiries arising from the contents of the report should be addressed to: Manager Review and Reporting Australian Communications and Media Authority PO Box 13112 Law Courts Melbourne VIC 8010 Telephone: (03) 9963 6800 Facsimile: (03) 9963 6899 Email: [email protected] This report is available on the ACMA website at www.acma.gov.au/CommsReport Senator the Hon. Helen Coonan Minister for Communications, Information Technology and the Arts Parliament House Canberra ACT 2600 Dear Minister I am pleased to provide you with the ACMA Communications Report 2005–06, which replaces the Telecommunications Performance Report. This publication incorporates a report on telecommunications performance for 2005–06, prepared in accordance with section 105 of the Telecommunications Act 1997. It further includes a report on industry’s efforts to place aerial cables underground, which was prepared pursuant to clause 50 of Schedule 3 to the Telecommunications Act 1997. The statutory reporting obligations under the Telecommunications Act 1997 are fulfilled in the following chapters of the Communications Report: – 105(3)(a) and (b) which relate to the efficacy of supply of telecommunications services and the adequacy and quality of such services and billing information: Chapters 4–8 and 10; – 105(3)(c) and (d) which relate to carrier and carriage service provider obligations under Part 6 of the Telecommunications Act 1997 with respect to industry codes and standards: Chapter 4; – 105(3)(e) and (ea), 105(4) and 104(5) which relate to industry performance in fulfilling universal service obligation, Customer Service Guarantee and digital data capability obligations: Chapter 5; – 105(5A) which relates to the operation of Part 14 (national interest matters) and Part 15 (cooperation with agencies): Chapter 7; and – Clause 50, Schedule 3, which relates to progress in the placement of telecommunications facilities underground: Chapter 7. Please note that subsection 105(7) of the Telecommunications Act 1997 requires that you table the report in each House of the Parliament within 15 sitting days of that House after receiving the report. Yours sincerely Chris Chapman Chairman 30 October 2006 Acknowledgments The ACMA Communications Report 2005–06 draws on data from a range of sources including ACMA’s own databases, information reported by industry, ACMA’s research using third-party public sources, and commissioned surveys and analysis. ACMA has a statutory reporting obligation to collect data from industry for monitoring and reporting purposes. One of the recommendations of the Rethinking Regulation: Report of the Taskforce on Reducing the Regulatory Burdens on Business of 31 January 2006 was that the reporting requirements placed on industry under section 105 of the Telecommunications Act 1997 should be reviewed to ensure their continued relevance. The data requested for the 2005–06 financial year has been reviewed and substantially rationalised as part of ACMA’s response to the government’s regulation reform agenda. ACMA is pleased to observe that the telecommunications industry has responded positively to ACMA’s streamlined 2005–06 data request, with 100 per cent of companies responding to the questions asked. ACMA will continue to work with industry participants to identify opportunities to streamline regulatory reporting arrangements. Disclaimer The information in this document was obtained from sources ACMA believes to be reliable. However, ACMA does not guarantee the accuracy, completeness or adequacy of the information. To the maximum extent permitted by law, ACMA is not liable for any errors, omissions or inadequacy in the information, or for any reliance on the information. Predications and forward-looking statements in this document are based on information existing and known at the time of publication, and are subject to risks, uncertainties and changes in circumstances beyond the control of ACMA. Opinions and positions stated in this document are subject to change without notice. Comments ACMA welcomes feedback on the Communications Report. Comments and enquiries about the scope, content and format of the report should be sent to [email protected]. Further information For further information about ACMA and links to the Communications Report, please go to www.acma.gov.au/CommsReport. Contents | 5 Contents Chairman’s foreword 7 Executive summary 8 Current environment 19 1 Communications environment 2005–06 20 Technological convergence 21 Convergence and consumers 22 Convergence and markets 24 Key indicators – at a glance 26 Communications participants 33 2 Consumers and audiences 34 Usage statistics 35 Technology adoption segmentation 41 Young adult market 44 3 Industry 50 Telecommunications industry 51 Broadcasting industry 74 Subscription television industry 89 4 Industry compliance and consumer satisfaction 92 Telecommunications codes and compliance 93 Industry compliance with telecommunications codes 94 Consumer satisfaction with telecommunications services 98 Broadcasting industry codes 100 Consumer satisfaction with broadcasting services 101 Consumer benefits 105 5 Communications services 106 Geographic distribution of services 107 Regulated availability of services 112 Access to services for people with disabilities 127 Enhanced communications services 131 6 Personal protections 142 Balancing personal privacy with social interests 143 Emergency and priority needs services 147 E-security and unsolicited communications 154 Fostering a safer online environment 158 7 Community and social interests 166 Communications infrastructure regulation 167 Electromagnetic emission regulation 169 Supporting law enforcement 171 Protecting national information infrastructure 176 6 | ACMA Communications Report 2005–06 8 Services in remote Indigenous communities 180 Access to telecommunications services in remote Indigenous communities 181 Access to broadcasting services in remote Indigenous communities 183 Government initiatives for communications services 185 in remote Indigenous communities Performance of services in remote Indigenous communities 185 9 Broadcasting—reflecting Australian identity and cultural diversity 192 Australian content on television 193 Local information on regional television 201 Australian music on commercial and community radio 201 Access to sports and special events programs 203 10 Economic benefits resulting from changes in 206 telecommunications services Developments in the telecommunications sector 208 Estimating benefits from telecommunications services 215 Emerging environment 223 11 Emerging communications issues 224 Developments in technology 225 Issues for industry 226 Issues for consumers 226 Regulatory issues 227 Appendixes 230 Glossary 298 Index 314 Chairman’s foreward | 7 Chairman’s foreword I am pleased to present to you the inaugural Communications Report from the Australian Communications and Media Authority. It offers a comprehensive survey of the Australian communications landscape over the 2005–06 year—a wide-ranging report whose scope reflects the broader interests and enhanced capabilities of the new converged regulator in its first year of operation. The ACMA Communications Report 2005–06 replaces the former annual Telecommunications Performance Report, which recorded the telecommunications industry’s performance and compliance with statutory obligations. While this new report continues to fulfil ACMA’s reporting requirements, it goes further by profiling the telecommunications, internet and broadcasting industries in all their facets, from old media to new media, and from established players in national markets to new players in niche markets. Based on data aggregated from industry and third-party sources, as well as ACMA’s own research, the report tells the story of consumer, industry and government actions and interactions in the communications field throughout the year. Concerning industry, the report assesses performance, product and service innovation, self- regulation and customer service. It also offers a synthesised assessment of industry performance in terms of protection for the consumer; environmental and social benefits to the community; and cultural and economic benefits to the nation. Concerning consumers, the report examines the products and
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