30 April 2002 - Media Release

The broadband divide - Telstra’s legacy

The Coalition’s inability to understand that telecommunications policy is a bigger issue than micro-managing Telstra, has seen Australia slide from being a world leader to a world follower in the global ICT infrastructure race, the Shadow Minister for Information Technology, Senator Kate Lundy, said today.

In the keynote address to the Rural and Regional Telecommunications Summit in Melbourne, Senator Lundy explained how, in the mid-nineties, Telstra’s research priorities were diverted from new, infinitely more robust network infrastructure technologies like photonics, to embark upon a cost-cutting, short sighted agenda designed to reduce capital expenditure.

According to the OECD Working Party on Telecommunication and Information Service Policies, The Development of Broadband Access in OECD Countries, Australia is now ranked 13th in the OECD in terms of per capita broadband connections.

“This is not good enough. Telstra has contributed directly to Australia’s poor relative performance in the roll-out of broadband. It is the equivalent of building a railway track that can only support trains going 40 miles per hour,” Senator Lundy said.

“Telstra’s choice to focus on ADSL and line multiplexing technology, like pair gain and RIM has come under harsh criticism by home internet users around the country,” Senator Lundy said, referring to the huge number of responses received on her Pair Gain Victims site www.katelundy.com.au/pairgainvictims.htm

“Although these technologies have a use, their overuse as a cost-cutting device by Telstra has now compromised quality, reliability, scalability, upgrade-ability and ultimately, affordability of telecommunications in this country. Telstra has created a legacy of sub-standard infrastructure that could haunt us as a nation for generations,” Senator Lundy said.

“However, the need for broadband is not just a question of how this infrastructure is to be upgraded and how to make Telstra do it. It is a policy challenge that extends above and beyond the incumbent myopic carrier.

“In my speech I expressed the view that the policy tools of service standard regulations (like the Universal Service Obligation (USO) and the Customer Service Guarantee (CSG)) as well as competition regulation require strengthening, but this is not enough. These strategies should be complemented by connectivity programs designed to stimulate competition, not suppress it.

“I also suggested that Federal, State and Local Governments should consider whether to purchase their telecommunications requirements from carriers other than Telstra. This would be a useful tool for Telstra’s competitors seeking to create a viable business case; there is a real opportunity here to be pursued.

“However, this will not happen federally when there is a conflict of interest for the Coalition Government with a privatisation agenda and a telco’ with a monopoly to hang on to,” Senator Lundy said.

30 April 2002. Media contact: Jason Ives 6277 3334 or 0418 488 295

26 April 2002 - Media release

Coalition throws cold water on ICT start-ups 

Many of Australia’s ICT start-up companies face disaster because of a Government decision that abandons them at the worst possible time, the Shadow Minister for Information Technology, Senator Kate Lundy said today.

“The Coalition Government has sacrificed the interests of Australian ICT start-ups by freezing the R&D Start scheme,” Senator Lundy said. “This is an ill thought out attempt to clean up a financial mess of its own making.”

“The Coalition is so desperate to avoid the budgetary consequences of it’s mismanagement of its own R&D scheme – which been overspent by $40 million this financial year – that it is willing to turn its back on a high-tech sector that is already being wracked by an international collapse in the venture capital market,” Senator Lundy said.

“Instead of finding innovative ways to help Australia’s brightest young companies through what has been called a Venture Capital Ice Age, the Howard Government has decided to toss its own bucket of cold water at them.

“The R&D Start grants scheme has become an important source of early stage funding for start up companies, one of the few sources of Government support that entrepreneurs could actually make work for them.

“Industry Minister Ian Macfarlane is obviously either powerless to stand up for industry or too ignorant to understand the impact that this decision will have.

“But what is really astounding is that after six years on the job as Communications and Information Technology Minister, Senator Alston has simply had nothing to say,” Senator Lundy said.

“Senator Alston can usually be relied on to talk before doing nothing, as evidenced by his continuing failure to deliver reforms he has promised to tax arrangements on employee equity schemes and capital gains tax reforms he has been promising since 1998.

“I call on Senator Alston to at least defend one of the few schemes that the Government has introduced by stepping in,” Senator Lundy said.

26 April 2002. Media contact: Jason Ives 6277 3334 or 0418 488 295

18 April 2002 - Media Release

Labor welcomes another ACCC investigation

Following representations by Labor Senator and Shadow Minister for IT, Kate Lundy, the ACCC will be investigating Telstra customer complaints about slow internet connection speeds for potential breaches of the Trade Practices Act.

“Over 1300 individuals have expressed their frustration and anger about their slow internet connection speeds and the inaccessibility of Telstra’s extensively advertised ADSL service through my ‘pair gains victims’ web site,” Senator Lundy said today.

“Having made a submission, followed up by a meeting with the ACCC Telecommunications Commissioner yesterday, I was pleased to hear it was their intention to investigate this matter.

"The ACCC also advised that certain matters raised in my initial letter are being referred to the Australian Communications Authority."

“I urge Telstra customers who can demonstrate they have been misled by Telstra along the following lines to contact the ACCC direct or to provide details through my web page:

www.katelundy.com.au/pairgainvictims.htm

Have you asked Telstra specifically for a second line for a data (internet) connection, only to find you have been provided with a service through a pair gain, which has had the effect of reducing your internet connection speed?

The ACCC can be contacted through their web site at http://203.6.251.7/accc.internet/contact/contactForm.cfm

For further information contact Jason Ives on 0418488295

16 April 2002 - Media Release

Government should be a smart IT buyer

Government departments need to be bold and innovative when negotiating IT outsourcing contracts.

All the indicators demonstrate that the Australian information technology sector is currently in the doldrums. Demand for IT services is dropping and according to some reports, shows no sign of bottoming out. You could call it a buyers’ market.

This is a great opportunity for Government departments to make bold and innovative decisions regarding IT services and solutions, including considering local small to medium enterprises (SMEs).

Departments and agencies should be looking to take charge when it comes to the negotiation, or renegotiation of outsourcing agreements, and ensure that they purchase the best offer – one which best provides the services and solutions they need.

It was noted that several government agencies and departments, including the Australian Customs Service, and the “Cluster 3” group of agencies are currently nearing the end of their outsourcing contracts.

Agencies should not be rushing in and repeating mistakes that they’ve made in the past. Instead they should shop around.

For example local IT SMEs have long established themselves as being capable of meeting the IT needs of Government, and can better tailor their services to an agency or department’s specifications.

In the current depressed conditions, the Federal Government should be more supportive of local IT businesses.

I would like to see Government departments and agencies for once being creative when trying to meet their IT service and solution requirements. Currently we have the perfect conditions for this to occur.

Media contact: Jason Ives on 02 6277 3334 or 0418 488 295

12 April 2002 - Media Release

TV sport coverage: the games aren’t over

“The fall-out from the Coalition’s mishandling of free-to-air sports coverage in Australia is only just beginning,” the Shadow Minister for Sport, Kate Lundy, said today.

“The issue of free-to-air sports coverage is bigger than just the AFL.

“Aussie Rules’ matches are just one of a number of high profile victims of some of the television networks’ sports broadcasting priorities.

“Ask fans of Rugby League in states other than New South Wales and Queensland how well they are treated. You’ll discover they are lucky to get coverage for just one game each week, screened in the wee hours of Saturday morning,” Senator Lundy said.

“It is becoming apparent AFL’s shabby TV coverage will be repeated with other major sports unless the Howard Government can ensure that sports coverage is adequate and television broadcasters do not hoard rights. Senator Alston could start by responding to the Australian Broadcasting Authority’s report into anti-siphoning which he has been sitting on since last year,” Shadow Minister for Communications, Lindsay Tanner, said.

“Senator Alston has created this mess and he needs to fix it. He had a so-called gentleman’s agreement with the AFL and the networks that fans would receive the same level of coverage under the new deal and that agreement has been broken. AFL fans in regions that used to receive live Friday night coverage are now being asked to fork out for slightly delayed Pay TV coverage or stay up past midnight to watch delayed telecasts. This is unacceptable and does not represent a fix to the problem. Senator Alston must ensure his original agreement is kept,” Mr Tanner said.

“The government should ensure that all top quality sports have ample opportunity to be screened at accessible times by a diverse range of free-to-air broadcasters,” Senator Lundy concluded.

Senator Lundy contact: Jason Ives on 02 6277 3334 or 0418 488 295
Lindsay Tanner contact: Peter van Vliet on 03 9347 5000 or 0408 188 055

11 April 2002 - Media Release

Fans forced to Pay for Alston/AFL TV Debacle

“Today’s deal between Channel 9 and Foxtel to grant slightly delayed AFL coverage to Foxtel on Friday nights is cold comfort for AFL fans who have been deprived of live Friday night AFL coverage in NSW, Queensland, and the ACT”, Shadow Minister for Communications, Lindsay Tanner, said today.

“The bottom line is fans who used to receive live AFL coverage on free-to-air television will now have to pay for slightly delayed coverage on Foxtel. Many fans cannot afford Pay-Television—that is why we have an anti-siphoning list preventing exclusive Pay-TV coverage of premium sporting events,” Mr Tanner said.

“When the new broadcasting deal was struck, Senator Alston had a gentleman’s agreement with the new consortium of Channels, 9, 10 and Foxtel that viewers would receive the same or more free-to-air TV coverage. This latest deal represents a backdown on that gentleman’s agreement,” Mr Tanner said.

Senator Lundy pointed out that on December 20, 2000, Senator Alston’s media release stated:

The Minister for Communications, Senator Richard Alston, announced today that the Government had received the public assurances it had sought from the Australian Football league (AFL), and free-to-air and pay television operators in relation to the maintenance of the current levels of free-to-air television coverage of the AFL.

“Clearly, he has now failed to meet that undertaking. This is not a solution, it is a disaster. It is the beginning of the end of the anti-siphoning list, and Senator Alston is encouraging it,” Senator Lundy said.

“Senator Alston’s support of the transfer of live AFL broadcasts to Pay TV demonstrates that he has utterly failed to defend the interests of Australian sports fans.

“Thousands of Australian Football League fans have missed out on live broadcasts, despite assurances from Senator Alston that this wouldn’t happen,” Senator Lundy said.

“AFL fans now have the choice of staying up past midnight to watch Friday night matches or forking out money for Foxtel Pay-TV, money that many fans simply won’t be able to afford. This is a lose-lose situation for AFL footy fans and they need look no further than Senator Alston to sheet home the blame,” Mr Tanner concluded.

Lindsay Tanner contact: Peter van Vliet on 03 9347 5000 or 0408 188 055
Senator Lundy contact: Jason Ives on 02 6277 3334 or 0418 488 295

9 April 2002 - Media Release

Action needed on digital divide

The Government can no longer ignore the millions of Australians embracing the online world, the Shadow Minister for Information Technology, Senator Kate Lundy, said today.

Referring to a recent Accenture study which suggests that 52% of the Australian population is enthusiastic about new technology, Senator Lundy said: “While it is encouraging to see that Australians are so switched on, it is disturbing that those same groups we typically identify as ‘information have-nots’ remain less aware of, and less able to access, information technology.”

According to the study, information have-nots are feeling “behind” when it comes to technology. A further category is indifferent to information technologies. These groups are more likely to be in a lower income range, or to be older Australians, and Senator Lundy expressed concern that their needs were not being addressed by the Coalition Government.

“Despite paying a lot of lip-service to the digital divide, the problem is not going away. Internet access must be reliable and affordable, to encourage Australians to use this wonderful technology.

“In today’s Australia, internet access equates to improved access, convenience and choice in relation to key private and public sector services. It can be as important as access to education or public transport services.”

The report also foreshadowed a new digital divide forming between narrow (standard dial-up) and broadband internet access. The bandwidth divide looms large, as compared with other countries, Australia’s broadband penetration rate is slipping – while 3.7 million Australian homes are connected to the internet, only 5% of households have high-speed broadband.

“The lack of commitment to broadband internet is just another example of a government that has no understanding of the internet,” Senator Lundy said. “Even the most technologically enthusiastic Australians cannot access the best the world wide web has to offer.”

Media contact: Jason Ives on 02 6277 3334 or 0418 488 295

5 April 2002 - Media Release

Senator Lundy asks ACCC to investigate Telstra’s customer contempt

The Australian Competition and Consumer Commission (ACCC) has been asked by the Shadow Minister for Information Technology, Senator Lundy, to formally investigate the conduct and behaviour of Telstra in relation to their use of narrowband pair gain technology.

"I have asked the ACCC to investigate whether these actions by Telstra may be in breach of Section 52 and 53 of the Trade Practices Act 1974," Senator Lundy said.

Senator Lundy established a website to survey people's experiences with Telstra and the impact of narrowband pair gains on their internet connection speeds and has received over 1100 individual insights, mostly scathing of Telstra. The survey is located at: http://www.katelundy.com.au/pairgainvictims.htm

"When Telstra customers pay for a ‘new line’ they think they are getting a separate copper wire. Consumers reasonably interpret a ‘line’ as a physical description, not a description of a service, like another dial tone. However, even though a separate piece of copper line might be installed from the house, if a pair gain is used at some point between there and the exchange, this copper pair and one or more other copper pairs bottleneck, having the effect of reducing internet connection speeds.

"There are, apparently, many different types of pair gain, resulting in varying effects. Nevertheless, it is always deleterious to the Internet connection speed. And yet Telstra do not disclose this to consumers, even when the request for a new line is expressly for an Internet (data) connection.

"It is no wonder that Telstra's customers are angry and frustrated. They think they are buying a line that will improve their service, and then they get an inferior service, with no explanation or power to make informed choices about the detrimental impact on Internet connection speeds."

"That's why it is time for the ACCC to have a look at Telstra's market behaviour in relation to pair gains," Senator Lundy concluded.  Click here to view the submission.

Media contact: Simon Tatz on 02 6277 3334 or 0418 488 295

5 April 2002 - Media Release

Coalition failing to support women’s sport

The Howard Government is failing to deliver on its promise to lift the profile and media coverage of women’s sport.

Recent reports that members of the Hockeyroos felt pressured into posing naked in order to raise the profile of their sport demonstrate the failure of the Coalition to fulfil their promise to Australia’s female athletes.

Six years ago, then Minister for Sports Warwick Smith launched An Illusory Image: A Report on the Media Coverage and Portrayal of Women’s Sport in Australia. At that time, there was a genuine belief that the Howard Government was going to act on the report’s recommendations, which were designed to raise the profile and sponsorship of women’s sport.

Instead of acting on the recommendations contained in this landmark report, the Howard Government scrapped the Prime Minister’s Women in Sport award and downgraded the Women in Sport unit at the Australian Sports Commission.

Consequently, several high profile female athletes and sporting teams have resorted to posing for calendars or magazines, some even altering their uniforms to be more revealing in order to garner increased media coverage and sponsorship.

The inability of our world champion Hockeyroos to acquire sufficient sponsorship highlights the failure of this Government to take women’s sport seriously.

Former Minister for Sports Jackie Kelly’s claim that the Coalition’s policy for women’s sport is “responsive to women’s values and perspectives” is now seen as little more than shallow rhetoric.

In six years, the Coalition has achieved very little progress in terms of improving opportunities for women’s sport in Australia, despite Australian women dominating in so many international sports.

It is now incumbent on Minister Rod Kemp to take decisive steps to assist those female athletes and women’s sports that are struggling to achieve sufficient television coverage and sponsorship.

Media contact: Simon Tatz on 02 6277 3334 or 0418 488 295

3 April 2002 - Media Release

AFL must ensure fans don’t miss out

“Changes to AFL television broadcasts is resulting in thousands of AFL fans in NSW and Queensland unnecessarily missing out on live broadcasts” the Shadow Minister for Sport, Senator Kate Lundy, said today.

“I call on the AFL to do everything it can to ensure this situation is satisfactorily rectified.

“In the ACT, NSW and Queensland, Channel Nine, which has the rights to both AFL and the NRL, is broadcasting AFL games as a delayed telecast late at night.

“This is obviously upsetting millions of Aussie Rules football fans who can no longer enjoy live AFL match on Friday nights.

“Television and radio broadcasts of the AFL are an important part of the Australian way of life and their continued broadcasting must be ensured. The current situation, which may also result in the ABC being stripped of live radio coverage because of the AFL’s radio licence agreement, is clearly unacceptable to AFL followers in NSW and Queensland.

“The AFL and its broadcasters must work out a satisfactory arrangement whereby both AFL and NRL fans are treated with respect and provided with live free to air coverage of football games.

“If the ABC was resourced properly, and if the Howard Government’s digital TV policy wasn’t such a shemozzle, then multi-channelling could be used to provide increased coverage and thereby satisfy the expectations of all football fans,” Senator Lundy said.