What is INTUG

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What is INTUG?
members national associations (e.g.,
ASUCOM) corporations individuals activities ITU
and WTO OECD APEC TEL, CITEL and EU
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Our Aims

• real and effective competition
• genuine choice for users
• lower prices
• higher quality
• more innovative services
• constructive co-operation with
• international bodies
• governments
• regulators

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A changing world

• Privatisation
• liberalisation
• regulation
• competition
• new technologies
• new business models

It is not easy to adjust to these changes
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Changing Importance of Sectors Share of GDP by
broad sector
Primary
Secondary
Tertiary
Quaternary (Information-based)
Quinary (Hhold services based)
O/Ship of Dwellings et al
IBISWorld 23/04/02
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After the bubbleE-Commerce and the Internet are
still growing
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The User Scorecard for Australia
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Australias Regulatory Regime

• ACCC
• XIC - Access Regime
• XIB - Anti-competitive conduct
• Minister
• USO
• Price Controls
• Regional telecommunications future proofing

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Australias Regulatory Regime

• ACA
• Consumer toolkits
• Number portability
• Number Plan
• Customer Service Guarantee
• National Reliability Framework
• ACIF Code Compliance
• TIO
• Consumer complaints

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ACIF16 Registered codes11 companies are code
signatories7 revised technical
standardsIssuesTimeframesISPsIndustry based
enforcementConsumer awareness
Self Regulation
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Local - 1 Jan 2000, interim May 198813, 1300
and 1800 numbers - November 2000Mobile - 25
September 2001 1900 - 8 July 2003
Number Portability
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5 Years On

• Assessments from Corporate Users on the current
  state of play in the telecommunications market

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Carrier selection criteria

• Price is almost always a factor in selecting a
  carrier, but it is rarely if ever the only
  factor
• Coverage, reliability, quality of service,
  technical capabilities and other network and
  service availability and performance measures
  were frequently cited as other key criteria
• Non-price commercial issues judged to be
  important included responsiveness, strength and
  ease of relationship, account management
  effectiveness, escalation and resolution of
  service problems, reputation, long term survival
  and installation time.

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Carrier responsiveness

• Has Telstra lifted its game?
• Most Top 100 companies say yes - but has
  further to go.
• Improvements include
• better marketing
• lower prices
• more pro-active account management and
• more flexible approach.

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Competition Scorecard

• Many Top 100 companies see competition as
  beneficialbut there are 4 areas of concern
• Telstras continuing dominance
• Prices still too high
• Limited offers in mobiles, data and broadband
• Not how many carriers but how effective!

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Other issues

• Prices, with fixed to mobile charges and
  international roaming specifically mentioned
• Carrier transfer process
• Billing
• Lack of standardised best practice agreements
  for supply of services.

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ACA Telecommunications Performance Report 2001-02
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ACCC - Price Index services for all consumers
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Estens Report on Regional Telecommunications
Inquiry, 2002

• to assess the adequacy of telecommunications
  services in regional, rural and remote Australia
  and
• to look at whether additional arrangements are
  needed to ensure that all Australians continue to
  share in the benefits of further service
  improvements and developments in technology

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Key themes emerged from 606 public
submissions

• 1. a continuing priority on expanding affordable
  mobile services to the greatest extent possible
• 2. the need for improved speed of Internet
  services and
• 3. some issues with the reliability of telephone
  services

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User goals keeping moving

• The crucial next step in 'future proofing' is to
  ensure that all Australians have access to
  affordable broadband services.

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User comments

• There are a number of tensions between policy
  objectives and practice in telecommunications
• A privatised incumbent operating in a competitive
  industry will always focus on maximising
  shareholder returns
• The industry self-regulation approach to
  competition policy is not always effective or
  speedy in dealing with end-user issues
• In practice, the focus on process rather than
  outcomes has lead to delay rather than decisions

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User comments

• In practice the focus on infrastructure
  (facilities) competition rather than services
  competition has resulted in wasted capital and a
  negative reaction from the capital markets
• The size and spread of the market have created
  difficulty in diffusing competition beyond the
  CBDs. Progress has only been achieved by
  regulation and direct Government funding

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Competitors - PSTN
US 2222
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• Access
• Line share of new entrants in (T2.2)

2000
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Share of National Long Distance with new Entrants
2000
2000
1987
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Prices Residential composite basket - domestic,
international, F2M

• Telephone charges USD PPP
• August 2002 (T6.10)

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Prices Business composite basket - domestic,
international, F2M

• Telephone charges USD PPP
• August 2002 (T6.12)

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Competitors - Mobiles
US 420
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Mobile market share
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Prices - Lower User Mobile charges - August
2002, USD PPP - (T6.15)
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Prices - Higher User Mobile charges, USD PPP
August 2002 (T6.17)
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• Internet subscribers (T5.1)
• 2001

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Penetration of Broadband Accessin OECD Countries
June 2002
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Access Broadband per 100 inhabitants, June 2002
(T5.3)
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Prices Internet access, 20 hours, USD PPP
(T6.6) September 2002
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Prices Internet access, 40 hours, USD PPP
(T6.7) September 2002
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Revenue per employee - 2001 USD T8.5, 8.6, 8.7 -
000s
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Why this discussion matters

• Industrial Age utilities were electricity, gas,
  water and the telephone
• Information Age utilities are information and
  communications technologies

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Thank you