June 2003

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May 2003 June 2003

bullet30 June 2003 - World Cup Soccer blow a wake-up call to Soccer Australia Board
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26 June 2003 - Broadband Competition Inquiry gets Senate tick

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25 June 2003 - More dollars won’t fix broadband

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25 June 2003 - Gungahlin telephony moves from backwater to average

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24 June 2003 - The case for ICT industry development: Australia’s “stagnating” adoption of ICT

bullet 23 June 2003 - Labor initiates broadband Inquiry
bullet20 June 2003  - Minister Tuckey out of line in Tent Embassy Fiasco
bullet20 June 2003 - Broadband growth rate mirrors Minister’s broadband interest - flat
bullet19 June 2003 - Coalition’s response to two-year-old report means nothing for IT small businesses
bullet18 June 2003 - Telstra’s tactics push Australia down the global broadband rankings
bullet5 June 2003 - Doubts over John Howard's Promise to build new Defence HQ
bullet4 June 2003 - Alston mute as Telstra plays games with ADSL
bullet3 June 2003  - Step up to the blocks, Minister

30 June 2003 - Media Release

World Cup Soccer blow a wake-up call to Soccer Australia Board

FIFA's recent decision to withdraw Oceania’s direct entry to the 2006 World Cup finals is a terrible blow for Australian players and fans but the impetus is now upon Soccer Australia to embrace reform and implement the recommendations of the Crawford Report.

FIFA is inherently a political body, and Australian soccer must be in good administrative shape to effectively argue the Oceania case and prepare for any future bid to have the decision overturned.

While the problems within Soccer Australia form only part of the explanation for the FIFA backflip, the current situation did nothing to strengthen the Oceania case.

It is in the best interests of the players, fans and Soccer Australia itself, to resolve its governance issues and prevent any further setbacks to our emergence as a great soccer nation.

The current state of Soccer Australia, has depleted Australia’s power base on the world stage, and reform must ensue if we are to strengthen our negotiations with Asia and the Oceanic region, as well as the world governing body, FIFA.

I urge all players to remain focused despite the disappointment in the lead up to the qualifiers to the 2006 World Cup, and for Soccer Australia to get on with the reform that is so desperately needed.

Media contact Adina Cirson 0418 488 295 or 02 6277 3334

26 June 2003 - Media Release

Broadband Competition Inquiry gets Senate tick

Labor and the minor parties have been successful in initiating a Senate Inquiry into broadband competition, despite continued opposition from the Howard Government which sought to sweep these issues under the carpet.

The Senate Environment, Communications, Information Technology and the Arts References Committee Inquiry has been referred the following matters for inquiry by the Senate:

bullet1. the current and prospective levels of competition in broadband services, including interconnection and pricing in both the wholesale and retail markets;
bullet2. any impediments to competition and to the uptake of broadband technology;
bullet3. the implications of communications technology convergence on competition in broadband and other emerging markets
bullet4. the impact and relationship between ownership of content and distribution of content on competition; and
bullet5. any opportunities to maximise the capacity and use of existing broadband infrastructure.

The parlous state of broadband competition in Australia was highlighted by the ACCC’s Report on Emerging Market Structures in the Communications Sector, which raised the issue of competition in Australia’s broadband industry. The Report stated:

“…experience suggests that incumbents or suppliers with substantial market power can stifle the promotion of competition via access regulation by delaying negotiations, provisioning networks in ways not conducive to access and by favouring supply of their own services over those of access seekers.”

Evidence of this delay in the supply of broadband services is found in the latest OECD report, which shows Australia’s declining status in global broadband rankings. OECD figures show that Australia has slipped from 13th to 19th in the OECD since 2000.

The Howard Government seems to be desperate to cover up Australia’s growing anti-competitiveness in broadband markets, and is opposed to this inquiry.

In contrast to the Coalition, Labor believes this inquiry will present a timely and useful forum to gather evidence from the Australian community and stakeholders about competition in broadband services, now and in the future.

Media contact: Adina Cirson - (02) 6277 3334 or the Electorate Office - 0418 488 295

25 June 2003 - Media Release

More dollars won’t fix broadband

The paltry dollars offered by the Howard Government to fix Australia’s broadband woes completely miss the point.

Since coming to office the Howard Government has demonstrated that throwing money at fixing high speed internet services has just entrenched Telstra’s position as the near monopoly broadband provider. It continues to use line splitting and to under-invest in critical infrastructure, short changing Australian taxpayers.

Minister Alston admits that the Coalition has poured hundreds of millions of taxpayers’ dollars into Australia’s telephone network, and still broadband connectivity is too low.

The serious deficiencies in Australia’s broadband environment are now widely known. They were made quite clear by the ACCC in its recent Report, “Emerging Market Structures in the Communications Sector”, released last week.

The Minister has dismissed the recommendations of this report as being “just a passing thought” and not “a serious policy recommendation”. He is clearly not interested in addressing issues of competition.

With this attitude from the Minister, an extra $142.8 million won’t make any difference.

Australians won’t be deceived by the trivial inducements the Howard Government is offering to secure the sale of Telstra. All Australians want a modern, future-proofed, broadband internet network and this is another reason why Australians will reject the Howard Government’s attempt to privatise Telstra.

Media contact: Adina Cirson - (02) 6277 3334 or the Electorate Office - 0418 488 295.

25 June 2003 - Media Release

Gungahlin telephony moves from backwater to average

While Telstra’s announcement of a new Telecommunication Exchange to be built at the Gungahlin Town Centre is welcomed, it should not be forgotten that this means Gungahlin residents are only moving from a broadband backwater to being able to access services that are available in most other metropolitan areas in Australia. 

This is a step in the right direction.  Labor’s campaign to improve broadband services in Gungahlin has received a great deal of support from Gungahlin residents particularly home-based small business operators.

My online survey has had responses from people who would subscribe to affordable broadband services, demonstrating a level of demand, so it is about time Telstra responded.

However, a new exchange does not necessarily translate into broadband for all who want it.  These questions need to be answered;

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Will any pair-gains or RIMS be used?

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Which residents will be serviced by the new exchange?

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How many people will be ineligible for ADSL because of the 3.5km radius and other limitations?

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Will the exchange be provisioned to service all Gungahlin residents with broadband?

In addition, there are still other areas in Canberra unable to access broadband for the same reasons as Gungahlin, for example Dunlop.  I call on Telstra to consider a new exchange for these areas as well, and in the meantime use the available technology (minimux) to provide at least some broadband services.

There is still much to be done, and Labor, including Katy Gallagher and Bob McMullan, has been very successful in leading the community campaign for some improvement.

Media contact: Adina Cirson - (02) 6277 3334 or the Electorate Office - 0418 488 295.

24 June 2003 - Media Release

The case for ICT industry development: Australia’s “stagnating” adoption of ICT

Australia risks losing much of our ICT competitive advantage - and therefore high skill, high wage jobs - according to today’s Australian Industry Group Report on the competitiveness of Australia’s economy.

While acknowledging that Australia has reaped the benefits of economic growth by investing in ICT, the AiG Report warns that this may not last, stating:

“recent evidence points to some stagnation in ICT growth. Growth in the proportion of businesses utilising a computer, the Internet and maintaining a web presence appears to have stalled from 2001.”

This stagnation reflects the Howard Government’s low interest in Australia’s local ICT industry. Under the Minister for Information Technology, Senator Alston, the Howard Government has never advocated the need to develop a vibrant ICT producing sector.

A vibrant local ICT producing sector has a role in driving innovative use of ICT. It increases the overall skill levels and understanding of ICT in the industry as a whole. The synergies of these relationships benefit the entire economy.

The productivity and efficiency gains offered by ICT have long been recognised. However, Labor has always argued that to ensure that these gains are sustainable into the long term, ICT usage must be accompanied by ICT production.

The AiG Report is a warning to the Howard Government and Senator Alston about the sustainability of Australia’s ICT productivity gains. The question is: are they listening?

Media contact: Adina Cirson - (02) 6277 3334 or the Electorate Office - 0418 488 295.

23 June 2003 - Media Release

Labor initiates broadband Inquiry

Labor has proposed a senate inquiry into the state of broadband competition in Australia.

Labor is supported by the Democrats in calling for the Senate Environment, Communications Information Technology and the Arts References Committee to inquire into the following issues:

· the current and prospective levels of competition in broadband services, including interconnection and pricing in both the wholesale and retail markets;

· any impediments to competition and to uptake of broadband technology; and

· the implications of communications technology convergence on competition in broadband and other emerging markets.

Labor is very concerned about the state of broadband competition in Australia. In particular, we believe that Telstra’s actions are causing severe disruption to its operation.

The importance of this inquiry was underlined by the ACCC report, “Emerging Market Structures in the Communications Sector”, which addresses Australia’s uncompetitive communications regime. The report, which has been ignored by the Minister, noted that Telstra’s control over the copper and cable network was a factor:

“Telstra is in a position to largely dictate the type of services that consumers will be able to access and the time at which these services become available.”

Labor has called for this inquiry because the rollout of broadband to Australia is crucial to our social and economic development, whether it is for regional residents accessing Government services, health, education, or small businesses accessing foreign markets.

ACCC figures published last week show that broadband growth, already starting from a small base, is in a trough, while Australia is ranked at 19th in the OECD in terms of broadband penetration.

Under the Howard Government’s flagging telecommunications competition regime, broadband take-up in Australia is slowing. Broadband users suffer from high prices and download caps, not to mention poor infrastructure.

Labor wants to ensure that the Government is accountable for the mess it has created, and hopes that this inquiry will present some solutions.

 Media Contact Adina Cirson 0418 488 295

20 June 2003  - Media Release

Minister Tuckey out of line in Tent Embassy Fiasco

Minister Tuckey’s decision to remove the fence around the Aboriginal Tent Embassy site again demonstrates his blatant disregard of the Aboriginal people and Australian history.

The Minister is determined to bring down the Aboriginal embassy, despite the burnt shed being heritage listed.  It is obvious he will not be taking advice from the National Heritage Commission, or the wishes of the ACT Government.

As usual, Minister Tuckey continues to abuse his power to step on Canberra  - enlisting the National Capital Authority who in turn request that the Australian Federal Police step in to do Minister Tuckey’s dirty work.

The Aboriginal Tent Embassy marks a symbolic protest and our Indigenous people have a right to have a presence in Canberra, a presence which has been maintained since 1972.

Minister Tuckey should not be instigating any political interference with the Aboriginal Tent Embassy, and should immediately refer the matter to the relevant apolitical authority.

 Media Contact Adina Cirson 0418 488 295

20 June 2003 - Media Release

Broadband growth rate mirrors Minister’s broadband interest - flat

Broadband uptake in Australia continues to decline under the Howard Government - just like the Minister’s attitude.

Latest ACCC figures demonstrate that broadband uptake in Australia is in a trough. Since the April-June quarter in 2002, the rate of broadband uptake has declined from 29.2% to 16.4%.

Broadband uptake in Australia remains a victim of poor competition, resulting in high prices and download caps, not to mention poor infrastructure investment. All this acts as a strong disincentive for consumers.

The Minister’s poor understanding of the benefits broadband can provide to a country like Australia contributes to the Howard Government’s ignorance and neglect. In Parliament this week the Minister made the absurd claim that:

“It does not necessarily have much to do with benefiting the economy if it is simply providing entertainment services to households a little faster than they might otherwise receive them because of their own level of demand”

The reality is that broadband internet can help regional businesses compete across Australia and internationally, creating much-needed jobs.

Broadband internet facilitates access to critical Government services and provides new opportunities in the provision of health and education and small business needs.

Australia’s declining growth rate is reflected by our declining world standing. Under the Howard Government, Australia has slipped from 13th in the OECD in terms of uptake, to 19th between December 2000 and December 2002, with only 1.9% of Australians connected (OECD figures).

Labor knows that broadband internet access is of great social and economic benefit to Australia. Encouraging universal uptake, creating jobs, and investing for the future must be a priority for any Government.

 Media contact: Adina Cirson - (02) 6277 3334 or the Electorate Office - 0418 488 295.

19 June 2003 - Media Release

Coalition’s response to two-year-old report means nothing for IT small businesses

Australian ICT small businesses seeking access to Federal Government contracts continue to be ignored, despite the Howard Government notionally supporting a recommendation from a Senate Committee to remove barriers that hamper their participation.

Almost two years after it was handed down, the Coalition today finally tabled its response to the Senate Finance and Public Administration References Committee Report into the Government’s information technology outsourcing initiative.

Unfortunately, it is a case of “say one thing, do another” from the Coalition, whose responses were far removed from reality.

In particular, Recommendation 21 of the Report urged the Government to, “act immediately to remove barriers, such as onerous requirements including financial guarantees, that hamper the participation of SMEs [Small to Medium Enterprises] in the Initiative.”

In fact, the Coalition’s commitment to this recommendation is virtually non-existent. The Industry-Government Working Group into Barriers to SMEs has been left spinning its wheels, with none of its suggestions acted on by the Government. Its work was not even included in the Minister’s Framework for the Future Report.

Meanwhile, Australian ICT small businesses remain locked out of most Government ICT outsourcing contracts.

Local IT small businesses remain the key to Australia maintaining and building its ICT capability, thereby providing high-wage, high-skill jobs.

The Senate Committee and the local ICT industry have been waiting almost two years for this response, and all they have received is a shallow exercise in box-ticking, whilst the real issues have been left unaddressed.

Media contact: Adina Cirson - (02) 6277 3334 or the Electorate Office - 0418 488 295.

18 June 2003 - Media Release

Telstra’s tactics push Australia down the global broadband rankings

A recent OECD Report has shown that Telstra has deliberately delayed the introduction of broadband technologies in order to use its market domination to get the jump on any competition.

This has contributed to Australia’s slide down international broadband league tables.

The OECD Working Party on Telecommunications and Information Services Policies, specifically refers to the spoiling role played by Telstra in Australia’s broadband market, noting that Telstra was responding to the “potential threat of competition” when choosing to roll-out cable rather than ADSL in 1997:

“Telstra’s choice to launch cable modem service four years ahead of DSL is notable. As the incumbent, had Telstra launched DSL it would undoubtedly have had to make a wholesale offer available to competitors. On the other hand, by first launching cable Telstra could meet any potential competition that emerged from other facilities providers using cable or DSL.”

 

[Source: OECD Working Party on Telecommunication and Information Service Policies]

“Broadband and Telephony Services over Cable Television Networks”, p. 24.]

These spoiling tactics are typical and they raise questions about Telstra’s motives for delaying until recently the provision of an untimed ISDN internet services to residential customers.

Once again it appears that Telstra has held back from providing a new internet service that would benefit consumers until it could optimise its market position by doing so.

It is because of these and other tactics that the OECD has found only 1.9% of Australians have broadband and that Australia has slipped to 19th in the OECD in terms of broadband penetration, well below countries such as Canada, the USA, and even Iceland.

Meanwhile, the Minister has made no effort to stop these kinds of activities from occurring. He sees broadband as little more than an entertainment medium and has no comprehension of the economic importance of broadband to small businesses - particularly in regional areas.

 Media contact: Adina Cirson - (02) 6277 3334 or the Electorate Office - 0418 488 295.

5 June 2003 - Joint Media Release

Doubts over John Howard's Promise to build new Defence HQ

Senator Chris Evans, Senator for Western Australia and Shadow Minister for Defence
Senator Kate Lundy, Senator for the Australian Capital Territory and Shadow Minister for Information Technology and Sport

Defence has confirmed that there are severe doubts over just when construction of the new Headquarters Australian Theatre will start.

A month before the last election John Howard announced that the $200 million facility would be built between Bungendore and Queanbeyan, in the marginal seat of Eden Monaro held by Liberal Gary Nairn.

It was claimed that the new facility would be ready for occupation by 2007.

In 2002, the Government tried to rush the project forward to make sure that construction would start before the next federal election.

However the prospect of any work occurring by then now seems very remote.

The project is currently stuck in Defence Minister Robert Hill’s in-tray waiting to be approved, and so is yet to receive a cent of funding.

It also has to be considered by the Public Works Committee, and those hearings will not start until at least February 2004.

This is bad news for the people of southern New South Wales and the Australian Capital Territory, as well as for Gary Nairn.

Because the work has not started, the promised benefits to the local economy have not eventuated.

This project is just another example of the Howard Government promising one thing to buy votes during an election campaign, but doing another when the time comes to deliver.

Labor calls on the Howard Government to come clean with the people of southern NSW and the ACT about exactly when it will start building the much-anticipated new Defence Headquarters.

For comment: Adina Cirson 0418 488 295 (Senator Lundy)
Tim Friedrich 0408 577 617 (Senator Evans)

4 June 2003 - Media Release

Alston mute as Telstra plays games with ADSL

I have today formally requested the Australian Competition and Consumer Commission to investigate Telstra for potential breaches of the Trade Practices Act in relation to ADSL connections. (click here to see letter)

Just a month ago whirlpool.net.au, an online broadband news organisation, revealed that Telstra wholesale rejected an ADSL broadband application from a customer of iiNet (a competing broadband service provider) on the grounds of poor line quality. Later the same customer was accepted when he applied through Bigpond, Telstra’s retail internet arm.

However, today it has been shown that this was not just a one-off case, and that Telstra has apparently been discriminating against independent ADSL internet suppliers in favour of Bigpond on several occasions.

Issues I have raised with the ACCC include:

bulletReports that Telstra appears to have acted anti-competitively on at least thirteen occasions;
bulletTelstra’s decision to use discretion with regard to the technical eligibility of customers applying for the ADSL broadband internet service; and
bulletThe rights of the individual Telstra customer whose ADSL broadband connection is to be disconnected after blowing the whistle.

I have requested that the ACCC investigate this issue so that competition in the broadband internet market is not stifled through Telstra’s dominance, and that the long-term prospects of broadband take-up in Australia are facilitated.

The Minister for Information Technology, Senator Alston, has been mute on pressing broadband issues such as this, which is typical of the Coalition’s general policy silence on high-speed, broadband internet.

4 June 2003. Media contact: Jason Ives on (02) 6277 3334 or 0411 237 683

Letter to ACCC

Mr Ross Jones
Commissioner for Telecommunications
Aust CCC
PO Box 1199
Dickson ACT 2602
Fax: 02 6243 1122

Dear Mr Jones,

I am writing to bring to the attention of the Australian Competition and Consumer Commission what appears to be anti-competitive behaviour by Telstra which I believe is seriously and adversely affecting  competition in Australia’s broadband market.

On 7 May 2003, an article was published on Whirlpool.net.au (attached, “Telstra denies favouring Bigpond in line testing”) that alleged that Telstra denied ADSL access to a would-be subscriber when applying through broadband supplier iiNet Ltd.  At the time, Telstra cited poor line quality.  The subscriber was later accepted as an ADSL subscriber by Telstra’s retail arm, Bigpond.

Telstra confirmed this occurrence in response to my questioning in the recent Senate Budget Estimates hearing on 26 May 2003 (transcript attached).  Whilst conceding that this could be perceived to be evidence of anti-competitive conduct, Telstra claimed that this occurrence was attributable to human error.

I have since had brought to my attention through the Whirlpool web site, a further twelve people alleging that they experienced similar treatment. (attached)  While one incident could be accounted for by human error, thirteen occurrences suggest that Telstra’s conduct ought to be investigated immediately.

I draw your attention to the transcript outlines how Telstra are able to use discretion with regard to the technical eligibility of customers applying for the ADSL service.  I am concerned that this discretion can and has been applied to advantage Telstra’s retail ADSL service at the expense of competitors at the ADSL wholesale level.  I understand this would constitute anti-competitive behaviour under the relevant sections of the Trade Practices Act as Telstra is treating wholesale and retail ADSL connections differently, to Telstra’s competitive advantage.

This is obviously not acceptable behaviour and I respectfully request that this matter be investigated immediately.

Another related concern is that the customer who made the original complaint was subsequently served with an ADSL disconnection notice four days after the Senate Estimates Committee Hearing (see attached article “Telstra Terminates ADSL whistleblowers connection”).  Can you please advise me of this customer’s rights under the Trade Practices Act.

Please don’t hesitate to contact my office if there is any way I can be of assistance.

Yours sincerely,
Senator Kate Lundy
3 June 2003

3 June 2003  - Media Release

Step up to the blocks, Minister

Minister Kemp must uphold his Tough on Drugs in Sport Policy, and ensure that the Australian Sports Commission (ASC) takes actions against sports that do not comply to the National Sporting Organisations’ (NSOs) Anti-Doping Assessment Processes.

It has been revealed that the Minister was made aware that the ASC did not sanction or withhold funding to the sport of cycling, despite knowing that it had failed to comply.

In Senate Estimates last week, the ASC stated that its ability to withhold funding and force sports to comply was subject to its discretion and ‘professional judgement’.  It also said that in its view there were no sports that did not comply.

Given that in Senate Estimates, ASC Chief Executive Mark Peters said, “…we are the final arbiters on actions against NSOs…”, the ASC is potentially undermining the importance of anti-doping processes, of which Australia is a world leader. 

NSOs must be held accountable for their requirements under the anti-doping framework and, as the ASC is the only body that can force them to comply, for them not to act is in direct breach of the Government’s policy of ‘zero tolerance’.

Australia is reputed as having the world’s best anti-doping practices.  The Labor Party established these high standards, and the Minister must ensure that these processes are maintained and that the Coalition’s own policy is adhered to.

3 June 2003  Media Contact: Adina Cirson 02 6277 3334 or 0418 488 295

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