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This week:

Fixed to Mobile prices
ATUG has been working on this issue since 2002 when members raised the issue of increases in
their bills. ATUG is responding to the most recent ACCC Discussion Paper on the “WIK Mobile
Network and Cost Model to inform the Mobile Terminating Access Pricing Principles
Determination 1 July 2007 to 30 June 2009”. ACCC decision to regulate mobile termination rates
has caused fixed to mobile prices to reduce over the last three years from 2004, although not as
much as we would have expected. ATUG accepts the findings of the WIK model which allows for
sufficient cost recovery by operators to encourage investment and innovation but suggests at
page 121 “The efficient mobile operator with 25% market share produces voice termination at a
cost of 5.9cpm.” ATUG’s view back in 2003 was that 8 cents per minute was a realistic cost
figure. The detailed analysis suggests a lower figure which could be achieved with two further 3
cent reductions in 2007 and 2008. Corporate users should bear these figures in mind when
discussing prices with their suppliers. The mandated ACCC price reductions were 21 cents per
minute in July 2004 to 12 cents per minute in January 2007. By way of example, the annual
Telstra results show prices paid by end users for fixed to mobile calls were 33 cents per minute in
2006 down from 38 cents per minute in 2003. Looks like there’s a way to go yet for end users to
get the full reductions from the ACCC decisions.

Investor presentations by Telecom NZ 15th March 2007
All presentations are at http://www.telecom.co.nz/content/0,8748,205527-201072,00.html

Marko Bogoievski CFO
“The market is underestimating the cost and complexity of NZ-style Operational Separation …
• Increased visibility of Telecom’s returns
• Increased scope of regulation
• Increased cost and complexity
• Ongoing restrictions on our retail businesses ability to compete
• Steady decline of the benefits of vertical integration
• Move to cost-based pricing of network services
• An oversubscribed capex plan and challenges to resource all of the planned initiatives
• Increasing difficulty managing the necessary tradeoffs between customer outcomes, compliance, retail transformation and BAU

From INTUG
In February 2006, the Ofcom Consumer Panel published a consumer interest toolkit to help
determine if consumer interests were being considered appropriately in the development of
policy. The toolkit is based on three important elements: identifying consumer interests,
demonstrating consumer interests and communicating consumer interests. Ofcom welcomed the
report and, in response, set out a number of proposals, including seven key recommendations for
building both citizen and consumer interests into Ofcom’s decision making processes and culture.
'Taking account of consumer and citizen interests', published today, gives an account of the
progress Ofcom has made in implementing its proposals. The document can be found at:
http://www.ofcom.org.uk/about/accoun/interests.pdf

Mobile roaming charges
The European Consumer Organisation (BEUC) has published a report on mobile roaming which
disputes industry claims of evidence of recent reductions in roaming charges. The report criticises
the lack of detailed information relating to international telecom services and the actual costs of
roaming supplied by operators to regulators, a practice which, the report alleges, makes it simpler
for operators to exaggerate the impact of price controls.
http://docshare.beuc.org/docs/1/KNKHKAOAPIEJMPHMPCILJCBMPDB39DBYTY9DW3571KM/BEUC/docs/DLS/2007-00172-01-E.pdf

International Roaming
The European Council is pushing for a fast-track agreement on roaming. Heads of EU Member
States have agreed that every effort should be made should be made to successfully conclude
the legislative process on the reduction of roaming tariffs by the end of the first half of 2007. The
Commission proposed last July to reduce international mobile phone charges within the EU by up
to 70%. The proposal is currently discussed in the European Parliament and among the 27
national ministers responsible for telecommunications. A ministerial meeting between the 27
ministers and EU Commissioner Reding will take place on 15 March in Hannover.

European Commissioner Viviane Reding commented:
"A political agreement on an ambitious reduction of roaming tariffs by summer is now within
reach. I call on all Ministers and Parliamentarians currently working on the Roaming Regulation
proposed by the European Commission last July to listen more to consumers and less to the
industry lobbyists. All citizens in the EU should be able to judge in July on their mobile phone bills
how effective the work of their ministers and their Parliamentarians has been."

Effective Use of the Internet – keeping professionals working in rural Australia
A report for the Rural Industries Research and Development Corporation which considers the
extent and nature of professional isolation in rural and remote regions of Australia (specifically
Queensland and Western Australia) and examines professionals’ use of the internet to support
their professional development needs. It draws upon survey and interview data from 10
professions and makes conclusions and recommendations based on the views and experiences
of over 1200 respondents.

Recommendation 6 suggests “Telecommunication infrastructure and computer hardware that
enables reliable, cost effective, broadband access is critical for successful online professional
development.”
http://www.rirdc.gov.au/reports/HCC/05-171.pdf

ICT secrets revealed
The Minister for Communications, Information Technology and the Arts, Senator Helen Coonan,
last night recognised Australia’s most innovative ICT companies at the awards night for the fifth
Secrets of Australian ICT Innovation competition.
http://www.minister.dcita.gov.au/media/media_releases/ict_secrets_revealed

ACCC outlines possible improvements in consumer protection
There were a number of potential improvements to the consumer protection provisions of the
Trade Practices Act 1974, Australian Competition and Consumer Commission Chairman, Mr
Graeme Samuel, said.
http://www.accc.gov.au/content/index.phtml/itemId/782733/fromItemId/2332

Tips to help consumers avoid phone scams
The Australian Communications and Media Authority has warned consumers to be alert to scams
that operate by way of calls or texts to private phones.
http://www.acma.gov.au/WEB/STANDARD//pc=PC_310077

ACMA and the TIO warn consumers about phone card retailer
The Australian Communications and Media Authority and the Telecommunications Industry
Ombudsman (TIO) are warning consumers that there are risks involved in buying phone calling
cards from calling card operator, Global Networks (Aust) Pty Ltd.
http://www.acma.gov.au/WEB/STANDARD//pc=PC_310081

Senator Coonan recorded address to the Dutch-Australia Broadband Roundtable in Amsterdam:
"In land mass, Australia is the sixth largest country in the world but has the third lowest population
density in the OECD. This creates significant challenges, and requires innovative policies that
reflect Australia’s unique position. The fundamentals of our policy approach are a stable, yet
responsive regulatory framework that supports competition as a key driver for lower prices and
more choice for Australian consumers. And where the market will not go, the Australian
Government will provide targeted funding to ensure all Australians can access vital
telecommunications services, regardless of where they live. The diversity in Australia’s
telecommunications market and the continued rollout of fast broadband in Australia from a
number of providers is a direct result of the pro-competitive and technology neutral approach that
the Government has adopted.
http://www.minister.dcita.gov.au/media/speeches/address_to_dutch-australia_broadband_roundtable

IEEE moves to promote broadband-over-powerline
The IEEE expressed optimism that a draft global standard could be created in 2008, which would
give vendors a master plan to guide them in manufacturing BPL components and systems.
http://www.itnews.com.au/newsstory.aspx?CIaNID=47638&src=site-marq

Tech Firms Push to Use TV Airwaves for Internet
A coalition of big technology companies wants to bring high-speed Internet access to consumers
in a new way: over television airwaves. Key to the project is whether a device scheduled to be
delivered to federal labs today lives up to its promise.
http://www.washingtonpost.com/wp-dyn/content/article/2007/03/12/AR2007031201395.html