The UK Government’s response to the UK General Data Protection Regulation (GDPR) was released earlier this month following consultation regarding the UK’s response to the EU GDPR. Carrying hefty fines, GDPR regulates the data processing activities of businesses in an effort to protect the data and privacy of consumers and apply to all Europeans whether they reside in the EU or not. 

Here in Australia, the Attorney-General’s review of the Privacy Act 1988 is still ongoing, tackling issues of privacy and data protection. The discussion paper framing consultation for the review heavily referred to the UK Information Commissioner’s guidance and it is likely that the AG Office will be following the development of the UK Data Reform Bill and whether it passes through Parliament. 

IAA responded to the Privacy Act review, emphasising the need for a balanced privacy regime that protects the privacy of individuals in a reasonable, and legitimate manner while not disproportionately burdening industry. Read our full response.  

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The Australian National Audit Office (ANAO) released its report on the Department of Home Affairs’ administration and regulation of critical infrastructure protection policies on 21 June 2022, and we’d have to say their assessment isn’t particularly positive. The report made seven recommendations, identifying improvements needed in the Department’s engagement of stakeholders, risk assessments and reporting obligations, performance measurement, and compliance management. 

Regulation of critical infrastructure has been a great focus for the Department in recent years with ‘critical infrastructure’ expanded to include more sectors, and they have been granted greater powers, even including direct intervention with an entity’s systems in certain circumstances.  

IAA has been actively involved in the consultation process for the implementation of critical infrastructure legislation. In our submissions, we consistently called for greater meaningful stakeholder engagement, including sector specific consultation. We also raised concerns that the implementation of the new powers and obligations was premature, and required greater review and thorough analysis to ensure the legislative reforms would ensure real benefits and outcomes. 

ANAO has since found the Department to lack an engagement strategy, and that despite sector specific strategies being developed prior to legislative reforms, “these strategies were discontinued before the reform engagement had concluded.”  

In addition, the Department’s performance measure was found inadequate, due to the measure not establishing targets supported by a verifiable method, not free from bias, and lacking detail on how performance against the standards contribute to achieving their purpose.  

The Department has accepted all seven recommendations to address the issues raised by the audit.  

Telecommunications is one of the sectors newly captured as critical infrastructure as of 2021. In addition to the critical infrastructure legislation, telecommunications is also regulated through the Telecommunication Sector Security Reforms (TSSR) as part of the Telecommunications Act 1997. As such, while the Systems of National Significance declaration power and enhanced cyber security obligations apply to the telecommunications sector under the critical infrastructure legislation, the Department of Communications is developing specific rules and obligations for the telecommunications sector. The sector can also anticipate a review into the TSSR later this year.  

IAA will continue to participate in consultation with government to ensure the implementation of rules for the telecommunications sector that are measured, effective and fit for purpose. 

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On 1 June, Communications Compliance Ltd (CommCom)opened the TCP Code compliance attestation page. Currently live, lodgements are due on 1 September 2022, and Carriage Service Providers who provide telecommunications services to consumers (as defined in the Code) are required to submit an annual attestation of their compliance with the Code.  

CommCom is an independent body responsible for overseeing the conduct of the Code Compliance Framework outlined in Chapter 10 of the TCP Code that also promotes compliance with the Code through industry guidance and educational initiatives.  

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This last month I’ve enjoyed a brief holiday, and in my absence the team have been just brilliant! Racks have been rearranged, submissions lodged, and our new portal has a shiny new layout. We’ve even cracked a new traffic milestone over the last week, so now 900Gbps is the new normal across the exchanges. Well done everyone, it looks like the IXes are delivering what you want.  

We also quietly observed the 25 year anniversary of WA-IX, and notice has gone out for a bigger birthday party later this year alongside our AGM. I hope we can get a good number of you along, as this will make up for the party we couldn’t have in 2020 to mark the 25th of WAIA itself! It has been great to see the preparation taking shape and we have some lovely messages already to hand from colleagues and friends around the world. 

One of the exciting pieces of reading during my holiday was the Australian National Audit Office (ANAO) report on the Dept of Home Affairs. I’d have to say it is one of the more critical – even scathing – reports I’ve read for a while. Statements such as “The department’s administration and regulation of critical infrastructure protection policy was partly effective” and “The department’s performance framework as it related to critical infrastructure was not adequate” echo our own observations and it would seem the department has a lot of work to do before the system becomes useful to any of us. Thankfully, they have accepted ANAO’s recommendations, but call me cynical, I await the implementation.  

The team also released two great research reports we commissioned that examine the value of our services and look at the impact we have on the internet ecosystem and the Australian market generally. I trust you enjoy the reading, and take as much pride in the contribution of your association as we do. 

All the best 

Narelle 

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The Telecommunications Industry Ombudsman (TIO) closed consultation for its 5-year independent review on 15 May. The consultation was primarily focused on its ability to meet the Australian ‘benchmarks for Industry Based Customer Dispute Resolution’, as well as other issues including its revised terms of reference, governance and authorising environment and engagement and outreach activities. In preparation for our submission, IAA’s policy team consulted with various industry representatives. The feedback we received from our members has highlighted concerns with the TIO’s management of consumer complaints, which seems to point to inherent issues with TIO’s cost structure and complaints escalation model.  

We establish from the outset that IAA recognises the value of the TIO and the fundamental role it plays in the industry. The TIO is an industry-based ombudsman with the charter to provide an independent and external dispute resolution service, giving consumers an avenue to raise complaints about their telecommunications provider, free of charge. Carriers and eligible carriage service providers are required by legislation to join the TIO scheme.  

The TIO reported it received 301,396 complaints in 2020-21. It is proud to announce that 90% of these were resolved at the referral stage. The ‘referral’ stage is the lowest level of complaints handling where the TIO allows the provider to directly resolve a customer complaint. If the dispute is unresolved at this stage, it will be escalated to the ‘agreement’ level where the complaint is handled through dispute resolution methods such as conciliation, and investigation. In cases where the consumer and provider cannot come to an agreement, the next stage involves the complaint being resolved by a preliminary view or decisions by the TIO.  

However, it should be noted that providers face greater costs as the complaints are escalated to higher levels. This has often resulted in cases where a provider will concede and provide the complainant with some compensation, even when the provider is not at fault. Some of our members have reported instances where even the TIO has acknowledged that the customer is in the wrong, but has advised the provider to give the customer some compensation anyway, as the costs for escalating the dispute to the next stage will be higher than the compensation amount. This points to inherent problems with the costs and complaints handling structure through which the TIO operates.  

Another issue that became glaring is that the TIO is often failing to follow its own terms of reference. Clause 2.20 of the TIO’s terms of reference provide that the TIO “…will only consider a complaint after the member has had a reasonable opportunity to consider the issues.” However, while resources promoting the TIO and their complaints webpages note that customers must first directly contact the provider, there is no mention that they must also give the provider an opportunity to consider the issue or respond. Even the TIO’s online complaint submission form does not include the requirement of allowing the provider an opportunity to consider the complaint directly, without the involvement of the TIO. 

A joint submission by consumer advocacy groups has also highlighted inefficiencies with the TIO’s complaints handling mechanisms. Making 19 recommendations to improve the operation of the TIO, some of these points seem to be harmonious with the concerns raised by industry. 

For example, the joint submission calls for a differentiation to be made between simple complaints that can be resolved in a substantially shorter period (5 working days instead of 10). However, as noted in IAA’s submission, a large number of the complaints resolved via referral are disputes which should not have been dealt with by the TIO at all. If the requirement that a provider is given a genuine opportunity to respond is adhered to, the TIO would likely see a significant drop in dispute cases, resulting in a much more efficient process for everyone involved. 

Recommendation 3 of the joint submission also outlines that the TIO should ensure its intake processes thoroughly assess the root cause of the complaint. This is a concern similarly raised by industry where it seems the TIO often fails to understand the underlying cause of the problem. In our submission, we raised the TIO’s lack of knowledgeable triage which has resulted in a large number of complaints being raised against the incorrect provider. This has especially been the case where retail providers are being blamed for issues that lie with the wholesale providers. 

The coalition of consumer representative bodies has also called for an expansion of the TIO’s public reporting. Industry has similarly called for greater transparency and in-depth reporting. IAA noted the lack of clarity in the TIO’s 2020-21 Annual Report, particularly in relation to the TIO’s costs and revenue allocation. Given the overall decrease in the number of complaints made from previous periods to 2020-21, the increase in costs and expenses of the TIO in this same period should be explained. 

However, it is worth noting that the data requested by the consumer advocacy groups include the technology types, geographical location, and the TIO members involved in the complaints.  While IAA supports the call for greater transparency and detail in the TIO’s reporting in general, we disagree that the providers involved in TIO complaints should be publicised. Especially under current circumstances where it seems providers are being involved in disputes that either should not be dealt with by the TIO or concerns other providers entirely, this sort of ‘name and shame’ tactic seems particularly unfair. 

IAA, our members, and the telco industry recognise the value of an industry ombudsman. We acknowledge its necessity for the functioning of a healthy and thriving sector and wish to see consumers having an appropriate and effective mechanism through which they can bring genuine complaints. However, it is clear there are inherent issues that require some major improvements if the Telecommunications Industry Ombudsman is going to succeed in this role.  

Read IAA’s full submission

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IAA was fortunate to attend and present at the CommsDay Summit 2022 held on 3-4 May 2022. Joined by then Federal Minister for Communications Paul Fletcher MP, and then Shadow Minister Michelle Rowland MP, industry engaged in an insightful and passionate discussion about the telecommunications industry.   

Amongst several other interesting topics, there were a few clear themes prevalent throughout the Summit; how to further digitise the sector and maximise the potential of 5G and IoT, improving market competition, particularly in regional Australia, and with the federal election looming, regulation and policy for the sector.   

There was an apparent recognition across the board of the need to further capitalise on the digitisation of the telco sector and other industries as they begin to digitise, particularly in the wake of the pandemic. Agriculture and education were highlighted as sectors where greater 5G and IoT uptake could rapidly benefit the respective industries. Furthermore, maximising the potential of 5G to ensure the sustainability of telecommunications technology was also a recurring concern raised by several presenters, including a dynamic look into smart poles during ENE. HUB’s lightning talk. Both Essential Energy and Lumea presented on their convergence of energy and telco industries to use telecommunications assets to provide a solution for sustainable energy. Optus emphasised its hopes for the industry’s future, including achieving a sustainable sector by 2030.   

ACMA also attended the Summit, presenting on the challenges facing the industry; the most pressing issue, according to ACMAscammers. This follows the Customer Identification Authentication Rules recently created by ACMA, which will come into effect from 30 June 2022. IAA has created a whitepaper unpacking the rules to assist members in implementing new obligations. ACMA also stated that the authority would focus on raising awareness and educating both industry and consumers in the lead up to the rules’ commencement date. ACMA also called on industry to continue collaboration with financial bodies and various government authorities, including ASIC, ACCC, and the AFP, among other stakeholders, to ensure robust systems and procedures, including the adoption of the new automation, filtering and tracking technologies that can combat the proliferation of scammers. They also highlighted recent efforts to filter and trace scam calls with some astounding numbers of calls reported. When they say scammers are targeting Australia on an industrial scale, the numbers certainly support this.  

However, the regulatory focus at this Summit centred around NBN, and the lack of competition in the market, particularly in regional Australia. Vocus CEO Kevin Russell pointed out government policies enacted by both major parties have directly resulted in the monopolisation of the market by NBN Co. The need for better balance and increased competition and opportunity for other players was reiterated throughout the Summit. Both political candidates, Fletcher and Rowland, pointed out the alleged failures of their respective opponent’s governments in delivering adequate NBN services.   

NBN continued to be a focus from IAA CEO Narelle Clark, who presented IAA’s “2022 Election Wish List”, similarly noting the need to improve NBN performance, alongside other pressing points including rebuilding industry-government trust, improved market access, particularly for smaller Internet players, better Internet for regional and rural areas, and implementing a strategy to address the skills shortage in the industry. These points echoed many of the concerns raised throughout the Summit, with some presenters proposing solutions that industry should take on themselves and the sort of regulation they believe should be introduced by the government.  

While neither political candidate directly addressed these concerns, it’s clear that the telco sector continues to be energised by the potential opportunities presented by emerging technologies, in tune with the concerns that face the Australian and global society, and is committed to innovating and providing new and improved services to ensure the development of Australia as a leading digital economy of the future.   

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In the spirit of celebration of WA-IX’s 25-year milestone, we’ve been catching up with founding and long-time members and this month; we’re sharing our catch up with Aubrey Adams. At the time of joining WAIA, Aubrey was teaching a technology management unit in the MIS Bachelor course at Edith Cowan University in Perth and was completing his post-grad diploma in computing. He had started using this new ‘World Wide Web’ thing to do research and became very interested in how it all worked and what it would mean for doing business and education. Many businesses were starting to have ISPs host their web servers off-premises, and he encouraged his students to think about what it would mean for a business to no longer have direct physical control of its data and the public’s access to it. As such, Aubrey searched for an industry association for ISPs and found WAIA and contacted them to arrange a guest speaker for his class. Kim Heitman came out and gave a talk to the students. Since then, Aubrey joined as a professional member as a way to keep himself informed of developments in the new world of the Internet.   

Although Aubrey was not involved in setting up WA-IX, he recalls the announcement at a quarterly general meeting and thought that it was a type of local ‘sub-Internet’ and recalled that the rationale and benefits to ISPs that were presented about the IX were very clear.   

When asked about his opinion on the most significant impact WA-IX has had on Australia’s Internet, Aubrey stated that “reducing data transit costs are very significant and that it contributed to the Internet and all its services becoming a ubiquitous feature of our life today. It has allowed ISPs to manage data delivery and create things such as ‘non-quota’ services, examples such as Netflix not being counted in a customer’s download limit. This model has then been implemented across Australia (and NZ) to benefit all users in some way.”  

Aubrey credits WA-IX’s growth and expansion over the past 25 years to the members and technical staff who saw the need and had the vision to implement and manage that growth. He describes being able to stream live matches of the Women’s Cricket World Cup from New Zealand on his smart TV using Kayo, with a picture quality that is outstanding. Although he acknowledges the NBN and advances in-home Wi-Fi all contribute to this, it’s infrastructure like WA-IX that enables that data, and a myriad of other services, to be available on-demand at an affordable cost.   

In future, Aubrey hopes to see more of the same – providing exceptional peering and efficient data transit for all members and users. He also stated how IAA’s recent advocacy work has been excellent, and he hopes that that continues and that he would like to see more informational/educational sessions for professional members in an online format will happen (if you would like the same, let us know at events@internet.asn.au). 

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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.  

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