Posts Tagged ‘telecommunications law’

ACCC rejects Telstra ULL undertaking

Wednesday, April 29th, 2009

The Australian Competition and Consumer Commission (ACCC) yesterday announced it had rejected Telstra’s undertaking to charge competitors a $30 monthly fee to access ULL in metropolitan areas.

The ACCC expressed surprise that Telstra’s $30 application worked out to be higher than the previous proposal of $30 for metropolitan areas, which was rejected in 2006.

ACCC Chairman, Graeme Samuel, said following an extensive assessment of Telstra’s application the ACCC was not satisfied the $30 charge for metropolitan areas is reasonable.

The ACCC believes that Telstra’s proposed price is unlikely to promote competition in the broadband and telephony markets. It may also discourage investment in telecommunications infrastructure. The ACCC also considers that a $30 monthly charge would result in Telstra recovering more than is necessary to promote its legitimate business interest in providing this service,” Mr Samuel said.

In rejecting the undertaking, the ACCC also noted Telstra’s proposed monthly charge was significantly above estimates derived from benchmarking against comparable countries.

This is the fourth time Telstra has submitted applications in regards to the ULLS service. One application was withdrawn while three have now been rejected by the ACCC because they could not be satisfied that the undertakings were reasonable. The two previous rejections were affirmed by the Australian Competition Tribunal on appeal.

The next move is with Telstra, one can only assume that being effectively sidelined in the Government’s NBN construction process, has prompted them to take an tough approach against their competitors who in the absence of the NBN rely on the ULL for service delivery for the short to medium term.

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ACMA black list release prompts website take down

Tuesday, April 14th, 2009

German domain name regulator, DENIC, has taken down the popular website www.wikileaks.de shortly after it published ACMA’s internet filtering trial black list.

Recent reports have emerged of the ACMA internet filtering trial black list having been published on different websites, potentially compromising the Government’s current internet filtering trials. One such website was www.Wikileaks.de.

Wikileaks had been known for its collection of leaked documents, according to ARS Technica:

Wikileaks has built up an impressive portfolio of leaked documents like those from secretive religious organizations, congressional reports, specs for military hardware capable of jamming IEDs used by insurgents in Iraq, and even its own donors list. In doing so, it has found few friends in governments and courts, with one judge even ordering its DNS record be erased after documents from Swiss Bank Julius Baer were uploaded to the site.

ARS Technica have also reported that German police raided the residence of the German domain name registrant Theodor Reppe who denies any involvement in the posting of leaked documents. The raids are reported to have come shortly after the ACMA blacklist was published. It is unknown at this stage, what involvement if any, ACMA had in closing down this website.

Another mirror site of wikileaks.de, which is hosted on a different domain, still shows links to different versions of what they claim is the secret ACMA black list.

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Complaint handling tops the list

Wednesday, April 8th, 2009

The TIO’s  recently released December 2008 quarter complaints statistics identify complaint handling as a problem area for ISPs and Telcos.

The TIO statistics show that complaints around complaint handling are increasing across all service segments:

Mobile services:

  • Provisioning (an increase of 37.7 per cent, from 297 to 409)
  • Customer Transfer (up 40.5 per cent, from 412 to 579)
  • Complaint Handling (up 25 per cent, from 4,340 to 5,427)

Landline services:

  • Complaint Handling (increasing by 55.1 per cent, from 3,957 to 6,137)
  • Phonecard (up 70.1 per cent, from 281 to 478)
  • Disability (up 117.4 per cent, from 46 to 100)
  • Billing and Payments (up 40 per cent, from 6,999 to 9,796)

Internet services

  • Complaint Handling (rising 31.5 per cent, from 2,782 to 3,657)
  • Credit Management (up 30.7 per cent, from 1,177 to 1,538).

The statistics are a timely reminder of the Complaint Handling obligations contained in the Telecommunications Consumer Protections Code C628:2007.

Clause 9 of the TCP Code imposes a number of obligations, the core of which are:

  1. (clause 9.1.1) having a complaint handling process;
  2. (clause 9.1.2) having a documented complaint handling policy;

It is also a requirement under clause 9.1.4 of the TCP Code that:

Suppliers must give the TIO a copy of their internal Complaint handling policy and advise the TIO of any significant changes within 7 days of the change, or as soon as practicable after that time.

The success of compliance can in large part be impacted by staff training and awareness of the procedures and policies. This needs to be addressed to ensure effective TCP Code compliance.

Non-compliance may cause the ACMA to take action by issuing formal directions or taking other enforcement action.

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ACMA cracks down on compliance with TIO Scheme

Tuesday, March 31st, 2009

ACMA issues formal warning to Canberra ISP for failing to comply with the TIO Scheme.

The ACMA have issued a formal warning to ByteCard, a Canberra ISP who was allaged to have failed to comply with the TIO Scheme.

The warning comes after allegations that disputes raised with the TIO by customers remained unresolved, as a consequence of this ByteCard’s refusal to comply with the TIO Scheme. According to the ACMA:

“……Bytecard had failed to cooperate with the TIO in relation to two continuing matters. Both the TIO and ACMA have made attempts to encourage Bytecard to voluntarily comply with the TIO Scheme, without success.”

Part 6 of the Telecommunications (Consumer Protection and Service Standards) Act 1999 (’the TCPS Act’) imposes obligations on Carriers and CSPs (who are referred to as eligible carriage service providers, as defined by s127) to (among other things):

  1. Enter into the TIO Scheme; and
  2. Comply with the TIO Scheme;

In this case, the ACMA’s formal warning came about by the alleged failure of ByteCard (who is an eligible carriage service provider) to comply withe TIO Scheme.

Unless a CSP is exempt under s129 of the TCPS Act, they must comply with their obligations under Part 6.

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Westpac told: ‘Do not call’

Monday, March 16th, 2009

The ACMA today announced that it has issued a formal warning to Westpac for breaches of the Do Not Call Register Act 2006 (‘DNCRA’).

The ACMA reported that Westpac was the bank that had the greatest number of complaints made against it to the ACMA concerning alleged breaches of the DNCRA. The ACMA claim that although Westpac had a relationship with its customers, ‘its procedures for recording the withdrawal of consent had failed.’

Westpac was reported to have agreed to and implemented a number of measures to resolve the issue including ‘washing’ their call lists against the Do Not Call Register.

The ACMA report that they have had a total of 40,000 complaints since May 2007 concerning the DNCRA, and noted a significant drop in the number of complaints from 2007 to the end of 2008.

It is evident that the message is getting through, that its not okay to call people on the Do Not Call Register – awareness has been assisted by a number of tools available to businesses to help comply including IP Telephony systems that ‘wash’ numbers before they are dialled.

We previously reported on the ACMA’s crackdown on compliance with the TCP Code, it is interesting to note that the ACMA has cast a wide net in its compliance enforcement activities.

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New Use and Disclosure Exceptions

Wednesday, March 4th, 2009

In the shadow of the Victorian bush fires, regulations create a new exception to the use and disclosure offences under Part 13 of the Telecommunications Act 1997.

Part 13 of the Act requires that Carriers, CSPs, their employees and contractors protect the confidentiality of protected information such as the content of communications, the affairs and personal particulars of people and namely the integrated public number database. The offences under this part are contained in sections 276 to 278, and can include a penalty of imprisonment against offenders.

s292(1) of the Act allows regulations to be made that provides for circumstances in which there may be exceptions to the offences under sections 276 to 278.

Although the Act already allows disclosure of documents and information in cases of threat to life or health (s287) in very limited situations, the Telecommunications Amendment Regulations 2009 (No.1) provides for an exception for the purpose of:

  1. preventing or lessening a serious and imminent threat to the life or health of a person or a class of persons; or
  2. ensuring that effective arrangements are in place to deal with such threats

The Explanatory Statement to these new Regulations states that:

The primary purpose of the Regulations is to allow emergency management authorities in each state and territory to obtain phone numbers and personal particulars (including any unlisted telephone or any address) of all the database listings for their respective state or territory for the purpose of ensuring effective arrangements are in place to deal with serious and imminent threats to life and health of persons. Such threats may emanate from natural disasters (such as bushfires and floods), criminal acts and non natural disasters (such as industrial accidents).

The Regulations permit disclosure of either (a) the information in an integrated public number database; or (b) a document that consists or relations to information contained in the integrated public number database.

Before disclosure is permitted there are 3 requirements that an authorised person must meet, these are:

  1. certify to Telstra that the disclosure and use of the information is required for the two permitted purposes (as set out above); and
  2. identify the recipient of the information; and
  3. provide Telstra with an undertaking that (a) any disclosure or use by a person other than Telstra or an employee of Telstra will be fore the same purpose; and (b) reasonable steps will be taken to ensure that any disclosure or use by a person other than Telstra or an employee of Telstra will not adversely affect the operation of Telstra telecommunications network;

There are also a number of safeguards requiring destruction of information when no longer required, and authority for the Privacy Commissioner to monitor the use of the information or documents.

We recently received an emergency communication from the Victoria Police, which we presume took advantage of these new Regulations, by way of an SMS warning of:

Extreme weather in Vic expected Mon night & Tues. High wind & fire risk. Listen to Local ABC Radio for emergency updates. Do not reply to this msg.

This Regulation is a welcome yet long over due regulatory development.

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TCP Code Complaince: ISP’s beware

Wednesday, February 25th, 2009

The Australian Communications and Media Authority ACMA last week announced that it had assessed 44 carriage service providers, and issued formal directions to 2 providers for non-compliance with the financial hardship requirements of the Telecommunications Consumer Protections Code (TCP Code).

Chapter 7 of the TCP Code deals with Credit Management, and among other things sets out obligations on how CSPs and Carriers must conduct themselves throughout the credit management process, including in cases of financial hardship.

Clause 7.5.1 states:

7.5.1 Financial Hardship policy: A Supplier must have a Financial Hardship policy that:
(a) provides for training of staff who will be applying the policy;
(b) is sufficiently flexible to accommodate the circumstances of individual Customers;
(c) ensures that a Customer can contact appropriate employees of the Supplier if experiencing Financial Hardship; and
(d) includes options for managing a Customer’s Financial Hardship.

The ACMA’s formal direction to compel the 2 CSPs  in question, to prepare a compliant Hardship Policy, once again underlines the importance of implementing a proper code compliance program, to maintain compliance, before the ACMA is forced to take action. Failure to comply with the formal direction, would result in Federal Court action by the ACMA to compel the CSPs in question.

Unfortunately, many ISPs are not proactive in ensuring compliance, and it is only when the ACMA comes knocking that they realise. This is something that we can assist you to overcome.

We have prepared scores of compliant policies, if you are a CSP who doesn’t comply, give us a call, we can help!

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Is it really “unlimited” ?: Mistakes in advertising

Thursday, February 12th, 2009

The ACCC’s recent action against Internet Service Provider TPG is a timely reminder for Telcos and ISPs looking to use the word ‘unlimited’ in their advertising.

The ACCC announced yesterday that it had sought and received enforceable undertakings (these are for practical purposes, very similar to a Court order) from TPG, for statements which it believed were misleading and deceptive to consumers.

The ACCC alleged that in advertising its Unlimited Cap Save plan, TPG engaged in misleading and deceptive conduct by making false representations that its plan:

  • includes unlimited calls and text for $59.99 per month when, in fact, there are multiple exclusions to the plan (including calls to 1800, 13 and 1300 numbers, directory assistance, international calls and SMS, calls to MobileSAT, premium SMS, and calls to operator assistance), and
  • is available for the purchase price of only $59.99 per month when, in fact, the minimum charge for the Unlimited Cap Saver Plan is $79.99 due to an additional $20 SIM card fee payable on registration

Besides being a public relations disaster with customers, advertisements which are misleading and deceptive are plain and simple illegal.

TPG learnt the hardway. According to the ACCC, TPG undertook to:

  • not, for a period of three years, publish an advertisement for a mobile telephone plan which states that for a specified price there will be unlimited calls and text when certain calls and text are excluded or additional charges will apply for some calls and text without including an appropriately prominent disclaimer to the effect that exceptions, terms and conditions apply
  • publish a corrective notice on its website
  • implement a trade practices law compliance program which requires all relevant staff and management to take part in training.

This is not a good outcome, considering this could have so easily been avoided.

Telco’s and ISP must remember that if there are conditions around an offer then they must make it clear what those conditions are. Failure to do so may lead to a breach of s52 and s53 of the Trade Practices Act 1974.

It is also a requirement of the Telecommunications Consumer Protections Code 628:2007 that where the word ‘unlimited’ or equivalent is used that, the Telco or ISP:

must ensure that it identifies which elements of the offer are “unlimited” and states any other conditions that may qualify the offer.

It isn’t to hard to comply, just be honest in advertising, and where there are conditions around an offer, let people know. If you are not sure, just ask your lawyer.

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    Alternatives to internet filtering

    Wednesday, February 11th, 2009

    Despite massive public opposition to ISP level internet filtering, the Government is pressing on with its internet filtering trials. We don’t yet know what the result of these trials will be, but the Europeans have developed an alternate approach to the issue of protecting children from harmful content online.

    Yesterday was Safer Internet Day across the European Union. The European Commission has developed the Safe Internet Programme which has a budget of 55 million Euros, and which has been running since 2004.  According to its website, the programme is aimed at promoting:

    safer use of the Internet and new online technologies, particularly for children, and to fight against illegal content and content unwanted by the end-user, as part of a coherent approach by the European Union

    It aims to do this by co-funding projects to :

    • Increase public awareness;

    • Provide the public with a network of contact points for reporting illegal and harmful content and conduct, in particular on child sexual abuse material, grooming and cyber bullying;

    • Foster self-regulatory initiatives in this field and involve children in creating a safer online environment;

    • Establish a knowledge base on new trends in the use of online technologies and their consequences for children’s lives.

    The programme is impressive because it takes a cooperative rather than an imposed position upon website operators. This year’s theme was protection of children on social networking sites such as Facebook, Myspace and You Tube. This cooperative approach has seen 17 of the leading social networking sites across the internet commit doing more to protect younger internet users.

    Is this the solution to all our online child protection issues – not it isn’t but it is a different approach, and may help contribute to the debate on internet filtering.

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    ISP filtering trials to start in batches

    Thursday, January 29th, 2009

    The Australian Newspaper is reporting that participants in the Government’s controversial ISP filtering trials will commencing in batches, instead of a universal commencement as originally thought.

    Of the 16 ISPs that are taking part in the trial, the Australian is reporting that the batches of ISPs will have different start and finish dates for their 6 week trials, which are to either be (a) the black list managed by the Australian Communications and Media Authority (ACMA); or (b) the clean feed option.

    Tests of the ISP filtering are to be conducted by Melbourne based Enex TestLab.

    Even before the trials have commenced numerous public campaigns against the filtering have emerged, with most experts questioning the effectiveness of ISP filtering, in light of the fact that most material of concern is transmitted through Peer to Peer networks.

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