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Internet Association of Australia calls for an nbn framework that prioritises fit-for-purpose internet for all Australians

28 July 2022

The Internet Association of Australia Ltd (IAA) today supports Communications Minister Michelle Rowland in rejecting NBN Co’s proposed variation to the Special Access Undertaking (SAU). As NBN Co looks to re-start the process, IAA calls for a new approach to the framework that prioritises providing all Australians with internet access that is affordable and fit-for-purpose.

IAA welcomes the Minister’s call that the SAU variation should reflect changes in the policy landscape where NBN Co will remain in public ownership for the foreseeable future.

“This is a good opportunity to hold NBN Co to its fundamental purpose for existence and create the SAU accordingly,” said IAA CEO, Narelle Clark. “This national resource should be geared appropriately to providing high-speed, high-quality broadband to sustain Australian lives and economy.”

The Minister’s letter to ACCC expressed the view that consumers and businesses are primarily concerned with the quality and service of NBN.

“NBN Co’s proposed SAU did not add any commitment to improve its performance against standards,” said Clark. “This would hurt both RSPs and the broader Australian public as prices for NBN would have kept rising despite failure deliver service and sub-par technology choices. RSPs have long been blamed for NBN Co’s shortcomings. NBN Co should take a more holistic consideration of end-user reliability to fulfil its role.”

IAA acknowledges a SAU variation is necessary given the changes to the technological landscape. “We look forward to continue engaging with NBN Co, the ACCC, industry and other stakeholders to ensure an SAU variation that best serves Australians and our economy,” said Clark.

July’s Advocacy Corner Update

The recent activation of the Telecommunications Sector Security Instruments on 7 July came as a surprise to the public policy team. The unexpected commencement of new obligations took up much of our attention this month, attending industry debriefs and preparing material to assist members with compliance. We have also continued consulting with members to prepare our submission on the NBN Co Standard Access Undertaking (SAU).

Recent Submissions:
Proposed NBN Co SAU Variation | ACCC
Given the recent change in government, our submission addressed this as an opportunity to reassess NBN Co’s reason for existence and argued that the proposed SAU variation should be considered in this light. We emphasised the purpose of NBN Co is to provide high-quality, reliable and accessible broadband, rather than NBN Co’s seeming focus of not mere cost recovery but going beyond to make even more revenue. Thus, we recommended the ACCC not accept the proposed variation on the grounds that it does not promote the long-term interests of the end user, as well as negatively affecting RSPs. 

Proposed Fees for Service 2022-23 | ACMA
We noted the significant increase in costs for a carrier licence application as well as charges for the telecommunications sector and requested further explanation and breakdown to justify any increase in ACMA’s fees. 

Open Submissions:
Incorporating QR codes into the telecommunications labelling arrangements | 19 August 2022
ACMA is proposing to amend the Telecommunications Labelling Notice to include QR codes to align labelling requirements with those under the Radiocommunications Act. This is to provide consistency and flexibility for suppliers in the Australian market and enable suppliers to comply with the requirements.

ACMA has also identified three telecommunications technical standards that relate to outdated technology, or withdrawn industry standards, which they are also proposing to be repealed.

 

June’s Advocacy Corner Update

Completed Submissions
Telstra-TPG Merger Authorisation | ACCC
In our response to the Commission’s consultation regarding the merger authorisation requested by Telstra and TPG, we noted our general support for the principle of open access provided at a fair cost, while bringing attention to the potential risk of adversely hindering competition through entrenching dominant players in the market. Overall, IAA believes that any infrastructure built with public money should be open to all relevant and qualified telecommunications providers to access. 

National Data Security Action Plan | Department of Home Affairs
The National Data Security Action Plan is in a very early stage of development. In our response, we focused on the need for government to clarify the policy context surrounding data security for the telecommunications sector. We called for greater meaningful engagement with the sector, and support for businesses to encourage collaboration.  While we acknowledge the need to ensure Australia’s data security, it is imperative that this takes a multistakeholder approach, and that the Action Plan is cohesive, clear and effective. 

Open Submissions
NBN Co. SAU Variation | ACCC | 8 July 2022
The ACCC is seeking submissions to its report on NBN Co.’s SAU Variation. The proposed variation from NBN Co includes product and pricing commitments, changing the framework for NBN Co’s cost recovery, and incorporating fibre-to-the-node and other copper-based technologies to create a single regulatory framework for all technologies. We are still keen to hear from any members with views on this important topic, as we know it is a highly contentious matter! 

Customer Identity Authentication – What you Need to Know

On 8 April 2022, the Australian Communications and Media Authority (ACMA) introduced a new set of rules, the Telecommunications Service Provider (Customer Identity Authentication) Determination 2022. These new rules are intended to protect customers from identity fraud scams that occur over telecommunications networks, including unauthorised mobile porting and unauthorised SIM swap scams.   

The new rules come into effect on 30 June 2022, and a number of our members will be affected by the changes. To ensure a smooth transition, we’ve prepared a whitepaper – Understanding Customer Authentication – that provides guidance to better understand and implement these new rules prior to their commencement on 30 June 2022. If you would like to discuss the rule changes or the paper further, please get in contact with our policy team at policy@internet.asn.au.  

Open Submissions – June

National Data Security Action Plan | Department of Home Affairs | 10 June 2022
The Department of Home Affairs is calling for submissions for the development of the National Data Security Action Plan. They seek to explore with industry and state and territory governments how Government and industry can meet data security expectations, how responsibilities can be best assigned to keep Australians’ data safe, and how Government, businesses and individuals can share responsibility for data security in the future to get the best outcome for everyone.

NBN Co. SAU Variation | ACCC | 8 July 2022
The ACCC is seeking submissions to its report on NBN Co.’s SAU Variation. The proposed variation from NBN Co includes product and pricing commitments, changing the framework for NBN Co’s cost recovery, and incorporating fibre-to-the-node and other copper-based technologies to create a single regulatory framework for all technologies.

May’s Advocacy Corner Update

Given the recent federal election, IAA’s policy team has largely worked on publications related to the election in May. We published our 2022 IAA Election Wish List, outlining the policies we would like to see adopted by the political parties. We also released our 2022 Election – Policy Assessment evaluating the policy platform of the major political parties in comparison to our Election Wish List. 

Unrelated to the election, we also released a Customer Identity Authentication whitepaper to provide information and guidance on the new ACMA rules and steps that members will need to implement in order to ensure compliance with the new rules by 30 June 2022. We hope you find this guide useful. 

5 Year Independent Review | Telecommunications Industry Ombudsman
In our submission to the Independent Review, we raised the concerns of industry, particularly relating to the inherent issues in the TIO’s complaints handling structure and costs model. We noted that this inherently affects the ability of the TIO to meet industry benchmarks. 

Statutory Review | Department of Treasury
We primarily focused on the need to ensure that the costs to industry are being properly considered and that there is a commitment to ensuring rules will realise actual benefits for consumers. 

Industry Guidance on the Carrier Separation Rules | ACCC
In our response, we raised attention to obligations not specified directly in the rules but contained in the written notice to avoid any confusion.  

 

Internet Association of Australia Grant Major Parties a ‘Conceded Pass’

The Internet Association of Australia Ltd (IAA) has released today its assessment of the major political parties’ policy platforms for the upcoming federal election, finding none measure up to the reasonable expectations of the internet industry.

IAA has evaluated the policy platforms of the major political parties against the IAA Election Wish List released last week. The assessment tables where each party meets – or falls short – of these expectations for a healthy and vibrant internet for Australia.

“The Assessment indicates there is little difference between each party’s platform. We commend them for their general support for expanded services, and the investment in improvements to the underlying infrastructure performance, however none succeed in addressing structural issues across the industry” said IAA CEO, Narelle Clark. “Our Election Wish List details how government should rebuild industry-government trust, improve access to market for small ISPs, improve NBN performance, improve connectivity for rural and regional areas and address skills shortages. These are the barest minimum and vital for the future of the industry. As such it is a Conceded Pass.”

Both the ALP and LNP coalition indicate strong support for improving NBN performance, and increased connectivity for regional and rural Australia, but lack assuring the industry that regulation and rule-making processes will be simplified to reduce burdens for industry.

“The last two years have more than demonstrated how vital a strong internet industry is to Australia. IAA therefore calls upon all parties to take steps and commit to meaningful, good faith engagement with the industry, regardless of the election result,” said Clark. “Regulatory reviews that fail to take into account industry security, privacy and operational concerns do not protect the nation.”

The technology sector is reported to contribute to 8.5% of Australia’s GDP and this is expected to greatly increase if Australia is to catch up and become a global leader in the digital economy. As both industry and government look to ensure the health of Australia’s internet industry to ensure a thriving economic future, the policies pursued by any government will play an immense role in protecting and growing the internet sector.

IAA ELECTION WISH LIST

IAA is committed to working with the Australian government to improve the security and growth of our sector, and Australia more broadly. To this end, we wish to see coherent, consistent, and commensurate regulation and policies to support the operation and use of the Internet in Australia.  

REBUILD INDUSTRY-GOVERNMENT TRUST
Trust has suffered in the relationship between government and the internet industry over successive parliaments enacting intrusive legislation and regulation.

  • Reduce the number of government bodies regulating the telco sector – Dept of Communications should be the interface for consultation and regulatory change
    The sector has seen a proliferation of regulatory bodies and federal departments to deal with; this means duplication, inefficient consultation and unclear regulation.
  • Meaningful consultation by government bodies, and prior to legislative proposals
  • Stop the rushed regulatory processes
    Legislative reviews have been completed in extremely short time frames, with limited change after consultation and review processes.
  • Improve review process for interception review: do the agencies understand the principles and practices of legal intercept?
  • INSLM recommendations implemented
    The Independent National Security Legislation Monitor made numerous well-founded recommendations after reviewing the TOLA legislation.
  • Industry impact assessments prior to new legislation/regulation
  • Internet impact assessments prior to new legislation/regulation
    A formal process to assess the impact of new legislation that properly examines the impact on the internet and the industry would aim to strengthen the internet as a platform for innovation.

IMPROVED ACCESS TO MARKET FOR SMALL ISPs
Small internet Service Providers do not generally have the capacity to implement complex regulation, and in many cases regulation is aimed at larger players. Clearer exemptions need to apply.

  • Reduce barriers to market for small ISPs
  • 121 POIs are too many for small ISPs to access, fewer POIs
  • Reduce the regulatory burden of critical infrastructure and related regulation

IMPROVE NBN PERFORMANCE
The NBN should be a platform for open competition but suffers from structural inefficiencies and serves to reinforce market concentration in the bigger players.

  • Get rid of NBN CVC
  • Enforce TIO rulings on underlying carriers (where the infrastructure provider has an issue, but the RSP incurs the fine or remedy)
  • NBN service performance improvements (in the face of competition from 5G and Starlink and growing consumer and business demand)
  • Improve NBN cost efficiency
  • Ensure flat or minimal increase in NBN charging
  • Create sustainable low-income measures for NBN services

BETTER INTERNET FOR RURAL AND REGIONAL AREAS
Regional network subsidies have favoured large mobile network operators rather than the broader industry. Grant processes are cumbersome and are not geared to support smaller players.

  • Focus on long term critical infrastructure: ducting, power, backhaul
  • Improved access for regional IXPs to facilities and backhaul at reasonable prices
  • Open access to infrastructure that has been created by government subsidy or USO
  • Easier access to grants for infrastructure provision for the wider industry
  • Encouraging incentives and funding that encourage industry to build connectivity to regional and rural Australia

COMPREHENSIVE STRATEGY TO AMELIORATE SKILLS SHORTAGE
The pipeline for skilled labour is fundamentally broken and is not producing sufficient numbers of skilled people at all stages of the education lifecycle.

  • End-to-end plan to improve skills supply for Australia addressing technical education from early education to ongoing industry training
  • Long term solutions to ensure a sufficient pool of talent and skills in Australia that is resilient to external factors

Issued: 5 May 2022

April’s Advocacy Corner Update

Completed Submissions

Telecommunications Sector Security Instruments | Department of Infrastructure, Transport, Regional Development and Communications | 29 March 2022
The DITRIC has drafted new conditions and rules for carriers and CSPs to apply equivalent security measures for the telecommunications sector to those under the Security Legislation Amendment (Critical Infrastructure) Act 2021 which is currently in place for other sectors. Our response predominantly commented on the breadth of scope which would impose unnecessary burdens and substantial costs on industry, and the lack of clarity provided in the instruments regarding the definition of key terms. 

Digital Platform Services Inquiry – September 2022 Report | ACCC | 1 April 2022
This inquiry is part of the ACCC’s five-year Digital Platform Inquiry for its September 2022 Report and follows the release of its fifth interim report. In our response, we focused on the need to ensure appropriate regulation over the digital landscape which fosters competition in the industry as well as improve the protection of consumers.   

Consumer Data Right Rules and Standards Paper for the Telecommunications Sector | Department of the Treasury | 5 April 2022 
Following the formal designation of the telco sector earlier this year, the federal Treasury has sought input for the development of rules which would apply to the sector. In general, we raised concerns about the disproportionate costs for industry and supported the introduction of a limitation threshold to provide exemptions for smaller organisations.  

Open Submissions  

NBN Co Special Access Undertaking – Long Term Revenue Constraint Methodology draft determination 2020-21 | 13 May 2022
The ACCC is seeking input to assist their assessment of whether NBN Co has complied with the criteria for their annual LTRCM determination. 

Independent Review | Telecommunications Industry Ombudsman | 15 May 2022
Public consultation for the Telecommunications Industry Ombudsman (TIO) is currently underway as part of its independent five-year review. The consultation is seeking feedback from industry in regard to the TIO’s accessibility, fairness, accountability, efficiency, effectiveness and land access (amongst other concerns). 

National Data Security Action Plan Discussion Paper | Department of Home Affairs | 10 June 2022
The Department of Home Affairs has released a discussion paper for consultation on the development of the National Data Security Action Plan. 

Please get in touch at policy@internet.asn.au to share any concerns or feedback we can incorporate into our submission for these open consultations.

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