Communications Carriage: Telegraphs to Tweets Holly Raiche Internet Society of Australia

CARRIAGE OF COMMUNICATIONS The technology Spectrum and/or wires Regulation: Standards: National - International ITU/IETF/ICANN Policy/Regulation: National – International National: General: ACCC/AS/ASIC etc Communications: Minister/DBCDE/ ACMA International UN-ITU, ISOC/ICANN/IGF/OECD Issues: The WCIT, the NBN and Competition policy reform

TECHNOLOGY - Fibre FIBRE OPTIC CABLE made of glass or plastic, slightly thicker than a human hair. It functions as a wave guide or ‘light pipe’ to transmit light between the two ends of the fiber. The current laboratory fiber optic data rate record, is multiplexing 155 channels, each carrying 100 Gbit/s over a 7000 km fiber.

TECHNOLOGY - Radiocommunications

TECHNOLOGY: KEY CONCEPTS PSTN LEX Gateway CAN Local Loop Access Network Copper pairs CAN Local Loop Access Network Copper pairs Backhau l LEX ISP BGR ISP BGR

TECHNOLOGY – The Network The Local Coop/Customer Access Network

TECHNOLOGY: The NBN

NBN Coverage Map

TECHNOLOGY– The OSI Model Open Systems Interconnection Model –

TECHNOLOGY: INTERNET All Internet communication uses packets Packets contain “Headers” and “Payload” Payload at one layer includes nested header information for the next layer IP Header payload IP Trailer The Internet routes packets only by looking at IP addresses in the IP header – information gets from source to destination without the network knowing or caring what application or purpose the packets are intended for.

RADIOCOMMUNICATIONS Definitions Spectrum – range of useful frequencies over which radio waves can be transmitted Frequency – rate at which the wave oscillates – in terms of hertz (hertz = cycles per second) Wavelength – distance travelled by radiated wave

Radiocommunications

Radiocommunications - Regulation International: ITU-R/ ETSI etc Australian: The regulator: Australian Communications and Media Authority (ACMA) (taking heed of international arrangements) The legislation: Telecommunications Act S The Act has effect subject to the Radiocommunications Act 1992 (but the fact that a person is authorised to do something under the RA does not mean they are authorised under TA) Radiocommunications Act 1992 Spectrum Planning, Radcom licences (Apparatus, Spectrum, Class) Technical Regulation Enforcement

RADIOCOMMUNICATIONS Prohibitions Operate a radcom device unless authorised by licence Unlawful possession of radcom device Cause a radio emission from non-standard transmitter Have in possession a non-standard transmitter Supply a non-standard device Sell/supply a device without required label affixed Operate or supply a prohibited device

RADIOCOMMUNICATIONS Spectrum Plan

Radiocommunications APPARATUS LICENSES Aeronautical Aircraft Amateur Broadcasting Defence Earth Fixed Land Mobile Maritime Ship Outpost Public Telecommunications service Scientific Space Major coast receive Earth Receive Space receive

Radiocomunications Spectrum licences First issued in late 1990s, early 2000 – for a 15 year period – now up for renewal – or not! Land mobile Public mobile Wireless access

Radiocommunications Class Licences: Handphone stations Aircraft and Aeronautical Mobile stations Cellular Mobile Telecommunications Devices Citizen Band Radio Stations Communication with Aussat Satellite Network Communication with Space Object Class Licence Cordless Communications Devices Emergency Locating Devices Low Interference Potential Devices Maritime Ship Station Overseas Amateurs Visiting Australia Radio-controlled models

TELECOMMUNICATIONS: REGULATION LEGISLATION Telecommunications Act 1997 Telecommunications (Consumer Protection and Service Standards) Act 1999 Radiocommunications Act 1992 Competition and Consumer Act 2010(particularly Parts XIB & XIC) REGULATORS Australian Communications and Media Authority (ACMA) Australian Competition and Consumer Commission (ACCC)

Telecommunications: Key Concepts Carriage - the use of electromagnetic energy to deliver communications at a distance Telecommunications network (s. 7 TA) A system or series of systems that carries or is capable of carrying communications by means of guided and/or unguided electromagnetic energy Radiocommunications (s.6 RA) A radio emission (any emission of electromagnetic energy of frequencies less than 420 terahertz without artificial guide, whether or not any person intended the emission to occur) or reception or radio emission for the purpose of communicating information between persons and persons, persons and things or things and things

TELELCOMMUNICATIONS: KEY CONCEPTS Carriers - What are they owner(s) of network units used to supply carriage services to the public must obtain a carrier licence (s. 42) network Units line link(s)s connecting distinct places over a statutory distance Designated radiocommunications facilities carriage services - service for carrying communications by means of guided and/or unguided electromagnetic energy supply to the public - if unit used for carriage of communications between two end users where at least one end user is outside immediate circle of owner of network unit

TELELCOMMUNICATIONS: KEY CONCEPTS SERVICE PROVIDERS (S. 86) Includes Carriage and Content Service Providers Carriage Service Providers (s. 87) If person supplies a listed carriage service to the public using network units. Listed carriage service (s. 16) Carriage service between point in Aust and another point in Aust or point outside Aust Supply to the public (s as before) Content Service Providers (s. 97(2) If person uses/proposes to use listed carriage service to supply a content service to the public - is a listed content provider. Content service (s. 15) is B’casting service, on-line information or entertainment service, any other on- line service by Min. Determination

TELELCOMMUNICATIONS: KEY CONCEPTS A Wider Definition of Service Provider? The Attorney-General’s Dept has proposed a wider definition of CSP for the purposes of the Copyright Act – safe harbour scheme: Service Provider – to go beyond providers of access to public networks supplied to the public Could include Online search engine Bulletin boards ISPs providing P2P Providers of messaging services, chat etc

THE INTERNET – The Players UN/ITU: Radcom/Telco standards Policy: IGF ISOC Standards (through the IETF) Policy input ICANN Domain Names (gTLDs directly and ccTLD consultation IP addresses IPV4 (32 bits – 40.3 billion) IPv6 (128 bits – 340 billion billion billion billion) 2001:0db8:0123:4567:89ab:cdef:1234:5678 auDA Oz Domain Names

TELELCOMMUNICATIONS: ICANN

THE INTERNET - WCIT PROPOSED CHANGES Recognised Operating Agency/Operating Agency – expand scope of the treaty Definition – Telecommunications – expand definition to include ‘processing’/ICT ETNO – sending party pays- would allow governments to set terms of commercial arrangements Routing permission – give member states the right to regulate routing QoS – basic level set by ITU-T Misuse - encourage appropriate use of numbering (E.164) only by assignees and for approved purposes – fear would extend to IP addresses/domain names Closed Process:

THE NBN WHAT IS THE NATIONAL BROADBAND NETWORK? (NBN) Delivery of Broadband to 100% of Australian Premise (FTTP/FTTH) (up to 100 Mb/s) Fibre optical cable to 93% of premises (up to 12 Mb/s_ Fixed mobile to approximately 3% of premises Satellite to approximately 3% of premises (Up to 12 Mb/s) Delivered by wholesale only open access provider By company (NBN Co) Government owned (until at least 8 years ofter network up and running)

29 Fibre – Variations

Policy Objectives: Competition and Broadband Improved competition For fixed line access network - functional or structural separation by Telstra Government owned NBN Co to provide the local access network (plus…) backhaul in non-competitive areas which is open access, wholesale only at a uniform wholesale access price Ubiquitous Higher Speed Broadband 93% of premises – fibre 7% of premises - wireless (fixed wireless/satellite)

Competition in Carriage In Telecommunications - competition almost always involves access to a competitor’s infrastructure/ services. So necessarily it is about cooperation in a competitive environment. TA Schedule 1 - Access to Facilities (towers, ducts, pipes etc) CCA Part XIB - Anti-competitive conduct Part XIC - The Access Regime

ACCESS TO FACILITIES Carrier requirement to give another carrier access to 1 st carrier’s infrastructure (for sole purpose of supplying competing infrastructure/services (given reasonable request and reasonable notice) (Schedule 1, Part 3 TA) Access to facilities ( infrastructure of a telecoms network, or a line, ducts etc for use in connection with a network - def. s. 7) On agreed terms or arbitrated by ACCC (Cl 18) Minister can make pricing determination (Cl 19) Access to network Information Access to info on likely changes to network facilities Access to service quality information NB: Under NBN legislation, now covers access to facilities by carriers AND carriage service providers.

Competition Rules PART XIB Competition Rule - Must not engage in anti- competitive conduct Breach of basic trade practice rules (Pt IV) If have substantial degree of market power, take advantage of that power with the effect of substantially lessening competition in that or other Telco markets Competition Notices Record Keeping Rules

Part XIC: The Access Regime Definitions Access - to listed carriage services Access Seekers - requested access to a declared listed carriage service Access Providers Carriage services Declared services/active declared services Objects of Part XIC Promotion of LTIE Promotion of competition in markets Achieving any-to-any connectivity Encouraging economically efficient use and investment in infrastructure

Part XIC: The Access Regime (cont’d) Declaration of Service After a public inquiry - initiated by the ACCC or an individual Access to declared service through commercial negotiation or arbitration Standard Access Obligations Must supply service Must provide interconnection Must supply service on equivalent terms and conditions to what provided to self - technical, operational quality, fault detection, handling & rectification Provision of billing, including timing and content Access to conditional access customer equipment

The Access Regime Service Declaration Explanatory Memorandum: CCS Act ‘Since it is clear that the ‘negotiate-arbitrate’ model is not producing effective outcomes for industry or consumers … the Bill reforms the regime to allow the regulator to set up front prices and non-price terms for declared services. This will create a benchmark which access seekers can fall back on, while still allowing parties to negotiate different terms.’

TELECOMMUNICATIONS: Declarations ACCC can declare services – LTIE criteria For services not supplied by NBN companies: Current declarations remain in force Service supplied by CSP under Special Access Undertakings (SAU) in operation (s. 152CBA ) CSP proposing to supply eligible service gives SAU to ACCC – undertaking to be bound by obligations in 152AR – SAOs - as applicable and terms in SAU) Expiry expiry should occur in 3 – 5 years, unless the ACCC considers otherwise

TELELCOMMUNICATIONS: ACCESS OBLIGATIONS –Hierarchy (s. 152 AY) C/CSP required to comply with any/all SAOs that apply to them – then comply with (in order): Access Agreement Ministerial Pricing Determinations SAU Final Migration Plan Binding Rules of Conduct (BRU) Access Determination

39 ACCESS DETERMINATIONS ACCESS AGREEMENTS Special Access Undertakings Final Migration Plan Ministerial Pricing Determinations Binding Rules of Conduct Key: Prevails over How it all fits together

ACCESS AGREEMENT Agreement must be In writing Legally enforceable Relate to access to a declared service Parties are an access seeker and provider of the service Can embody any/all terms and conditions on which service provided, including SAO, BRA, AD Must be lodged with ACCC within 28 days If agreement terminated, ACCC must be notified Compliance both a carrier licence condition and a service provider rule.

MINISTERIAL PRICING DETERMINATION The Minister may make a written determination setting out principles dealing with price-related terms and conditions relating to SAOs. (overrides SAUs, special access undertakings, access undertakings, binding rules of conduct, access determinations) Is a disallowable instrument

SPECIAL ACCESS UNDERTAKING Special Access Undertakings Carrier/CSP who is/expects to supply a listed carriage service or service that facilitates the supply of a listed carriage service May give a Special access Undertaking (SAU) to ACCC – stating (apart from service/T&C of supply of service) That it agrees to be bound by SAOS as applicable and Undertakes to comply with T&C in the SAU Must be consistent with relevant SAOs and Ministerial Pricing Determinations Can be accepted or rejected by the ACCC ACCC must maintain a register of SAUs

BINDING RULES OF CONDUCT Can be made by the ACCC About: T&C on which C/CSP complies with applicable SAOs, Extend/enhance capability of facility Require compliance etc (with limitations on the power) May be of general application, or limited to specific class of C/CSP or specific C/CS Duration – no more than 12 months Can be overridden by access agreements Compliance a carrier licence condition and service provider rule

ACCESS DETERMINATIONS ACCC can make AD that Specify any or all terms and conditions for compliance with SAOs Specify any other terms and conditions of an AS’s access to the declared service Provide that any or all SAOs are not applicable to a C/CSP Deal with any other matter relating to access to the declared service may make different provision with respect to different C/CSP or AS Cannot override Access Agreements Can include Fixed Can make Interim Access Determinations Cannot be made until after public inquiry Compliance: carrier licence condition or service provider rule Must be register of ADs

Functional/Structural Separation Under CCS Act, Telstra could: Functionally Separate Separation of Telstra’s wholesale/retail units Undertaking to divest interest in HFC Cable/FOXTEL (each/both can be exempted by Minister) Minister can limit allocation of spectrum licence OR Structurally Separate Undertaking will not supply fixed line carriage service/control of company that supplies fixed line services to retail customers using telecommunications network by 1 July 2018.

Telecommunications The Alternative: Structural Separation (s. 577A TA) Telstra will not supply fixed line carriage services (or in a position to control) company that supplies) using a telecommunications network over which Telstra is in a position to exercise control. Taking into account: Matter relating to transparency and equivalence in relation to the supply by Telstra of regulated services to Telstra wholesale customers and Telstra retail business units

STRUCTURAL SEPARATION Definitive Agreement 23 June 2011 NBN Co – with Telstra and Optus NBN Co access to infrastructure (pipes, ducts) Reuse of infrastructure by NBN Co Telstra/Optus to progressively decommission copper local access network and HFC network Government funding provided

Telecommunications

Glossary