1. Current Consumer Issues CommsDay Summit April 2018
Teresa Corbin
ACCAN CEO
Thank you for the invitation to present to Commsday Summit once more. Congratulations to the team for delivering another excellent program.
As many of you already know - ACCAN is the consumer peak body representing residential and small businesses in the telecommunications policy arena. Our core focus is on affordable, accessible and available communications for all Australians.

2. Current Consumer Concerns
NBN & Consumers
Consumer Protection
Rural & Regional Issues
Affordability Stats
My topics today will cover some of the major areas of our work on behalf of consumers at present:
NBN & Consumers
Consumer Protection
Rural & Regional Issues
Latest Affordability Stats

3. NBN and Consumers Wholesale Service Standard Performance Monitoring
APH Joint Committee
Like many in the industry now there are some many areas of our work that relate to nbn – I have just picked 3 areas to comment on today.
Wholesale Service Standard
Performance Monitoring
APH Joint Committee

4. NBN and Consumers Wholesale Service Standard
Obligations setting timeframes for connections, fault repairs, appointment keeping and network reliability benchmarks.
Arrangements to deal with the tension between wholesale and retail end user obligations.
Incentives to comply in the form of end user compensation, penalties and wholesale pricing considerations.
ACCC Inquiry into NBN Wholesale Service Standards
ACCAN has submitted to the ACCC’s inquiry into NBN’s wholesale service standards.
The purpose of the inquiry is to determine whether NBN wholesale service standard levels are appropriate, and to consider whether regulation is necessary to improve customer experiences. 
We have long advocated for reform of existing customer service guarantees for connection times, fault repairs, appointment keeping and network reliability. Currently, nbn’s wholesale service standard levels are set out in commercial agreements negotiated by nbn co with retail service providers (nbn’s Wholesale Broadband Agreement). This includes performance objectives and operational targets for nbn co’s products and services, requirements for improvements if targets aren’t met, and an arrangement that allows service providers (nbn’s wholesale customers) to claim compensation for their customers when nbn has failed to meet a service target.
The NBN environment is quite complex with a wholesaler, retail service provider and sometimes an aggregator as well involved in providing services to consumers. The ACCC inquiry on “whether NBN wholesale service standard levels are appropriate is strongly supported by consumer groups who believe that regulation is necessary to improve customer experiences.
We think that the NBN wholesale guarantees need to set out:
Wholesale service obligations setting timeframes for connections, fault repairs, appointment keeping and network reliability benchmarks.
Arrangements to deal with the tension between wholesale and retail end user obligations.
Incentives to comply in the form of end user compensation, penalties and wholesale pricing considerations.
According to the Telecommunications Industry Ombudsman Annual Report , the biggest complaint issues about services delivered over the NBN were new internet connection delays, a fully unusable internet service, a fully unusable landline service and new landline connection delay.
These issues indicate the great need for better wholesale service standards that ensure timeframes and incentives to comply with the required standards and supported with back to back arrangements between RSPs and nbn and also aggregators if they are a part of the service delivery chain.
The ACMA’s analysis of issues relating to NBN migration found that 55.7 per cent of all network-related complaints were about service quality (faults and speed) and that on average, complaints about faults took up to 19 calendar days to resolve, whereas complaints about connection issues took up to 28 calendar days to resolve. This further shows the need for better wholesale service standards. This year the ACMA will also implement new telco rules that are designed to improve the consumer experience in migrating to the NBN.
There are real-world costs of missed appointments.
We often hear from consumers who have service faults which last for long periods of time due to missed appointments from technicians. Delays in getting connections and getting faults repaired can result in much stress and detriment to consumers. When outages occur people may be unable to access government services, education and employment opportunities. Small businesses can be particularly affected by outages with many reporting monetary losses due to phone and internet outages.

5. NBN and Consumers Broadband Performance Monitoring
Complaints about nbn speeds at record high. First results come as part of concerted effort by ACCC:
New advertising guidelines are clearer
Over 70,000 customers refunded in past year by RSPs
Choice has also published its own broadband speed report
Calls to expand the monitoring to fixed wireless and satellite services
ACCAN welcomes the release of the first round of results from the ACCC’s Measuring Broadband Australia speed monitoring program, and its generally positive findings.
We’ve long been calling for the independent monitoring of broadband speeds so consumers know what they’re likely to be getting when they buy a service.
We strongly support the ACCC’s work in this area. We are very supportive of the ACCC’s whole program of work to improve consumers’ experience of nbn broadband.
Complaints about broadband speeds are at a record high. There is an obvious need for clear and accurate consumer information on what to expect from broadband services. The ACCC’s results make broadband speeds more transparent. This is important, because it helps consumers understand how services are actually performing, and gives them the tools they need to choose services best suited to their needs.
The latest report shows that NBN fixed broadband plans from iiNet, Optus, TPG, and Telstra are typically delivering download speeds of around 80 to just over 90 per cent of the advertised maximum plan speed at the busiest time of the day (7-11pm), and performing consistently throughout the day. They are also achieving positive uploads speeds.
With this information, consumers in NBN’s fixed technology footprint can have more confidence in choosing NBN services provided by these top 4 retailers.
It also gives consumers already connected more information to identify any problems they may be experiencing.
However, we are concerned that about five per cent of monitored connections are delivering lower than 50 per cent of the advertised speed.
We also need more information about other retailers noting that only 4 are identified in the ACCC’s report.
We urge consumers to volunteer for the ACCC’s program so we can see more data about the performance of other retailers.
We also urge the ACCC to expand its testing to include services in rural and regional Australia provided over NBN’s fixed wireless and satellite networks.
Consumers in non-metro areas are heavily reliant on their internet services due to their relative isolation, and badly need better information to have confidence that NBN is going to deliver for them.

6. NBN and Consumers nbn Joint Parliamentary Committee
Issues being raised fall with in the following areas:
Adequacy of existing services
Capacity of services to meet future demand
Alternative services to NBN – ADSL, fixed wireless
The need for targeted information to raise awareness of services in the market
We are currently working on our submission to the NBN Joint Parliamentary Committee inquiry into the NBN rollout in rural and regional areas.
Issues we are raising include the following:
Adequacy of existing services
Capacity of services to meet future demand
Alternative services to NBN – ADSL, fixed wireless
The need for targeted information to raise awareness of services in the market
We are concerned that the SkyMuster footprint is wider than originally intended – up 27,000 premises since At the same time there has been lower demand for SkyMuster services than anticipated (86,920 premises last month).
For some people, this suggests that other services are a more attractive option, as they can offer more data at comparable prices. These services include ADSL, alternative fixed wireless services, and mobile coverage.
Awareness of what services are available through NBN and other providers could be improved. We hear of many cases where people could upgrade to services better suited to their needs that are now on the market. We believe targeted awareness campaigns are needed to inform rural and regional consumers of options.
As to the adequacy of services, fixed wireless congestion is problematic in some areas. People experiencing this should be informed as to why, compensated and offered reduced monthly charges until the problem is fixed.
We remain concerned at the tensions between the NBN SkyMuster Fair Use Policy based on a 4 week rolling period with the monthly retail billing cycle, which are hard to track and catching out some consumers.
Demand for data is likely to grow, and service delivery must keep up with this. Rural consumers are still waiting for SkyMuster business plans, and we urge nbn co to expedite their launch.
We have questions about how satellite and fixed wireless will have the capacity to deliver as the Statutory Infrastructure provider of last resort in the future. Further investment may be needed to reconfigure these services to perform as take up increases. Ministerial powers under the SIP legislation should be used to support service delivery (reliability, connections and fault repair times).
The future of ADSL and copper is uncertain, but these are very important services. People are being caught out when finding ADSL is unavailable, or they are disconnected from ADSL and unable to reconnect. There is no public debate about the future of these services, beyond the future of copper voice services under the USO, and this should be addressed.
We also believe that alternative fixed wireless providers have been doing a good job in providing services and should not be squeezed out of the market in the upcoming 3.6Ghz spectrum auction.

7. CONSUMER protection New ACMA Rules TCP Code Review – the big issues
DoCA Review
Last year we welcomed the new rules that will significantly improve the consumer experience in moving to the NBN for consumers.
ACCAN has been calling for some time for these issues to be addressed and we are very pleased with the Minister for Communications’ and the ACMA’s announcements. This is a huge win for consumers but of course the devil will as always be in the details which are now being carved out.
The ACMA’s analysis of issues relating to NBN migration confirms what we already know, and highlighted some very concerning complaint trends. The findings reflect the consumer experiences ACCAN has been hearing about as customers switch over to the NBN.
The ACMA’s report showed that there needs to be better protection to ensure that consumers have access to a working service, that they are given accurate and consistent information and that there is an improvement in complaints handling to ensure quicker resolution of faults and connection problems.
The implementation of these new standards have to ensure that no-one is left without essential communications services.

8. Consumer Protection New ACMA Rules
Industry Complaint Handling Standard should:
Where appropriate align with benchmarks set in AS10002
Ensure customers are informed about the TIO at all appropriate points in the process
Ensure timeframes support speedy responses from RSPs
Facilitate industry identification of systemic issues and rectify these across all customers affected
In fact the experience of migrating to the NBN has shone a light on the inadequacies of the current regulatory framework to support the delivery of essential telecommunications services.
Once in place these new rules will also ensure that the regulator has better tools to ensure practices of telco providers improve and there will be a stronger mandate for the regulator to act when necessary.
Now that we have the first drafts for consultation of the Complaint Handling Standard and the Record Keeping Rule we have identified the following concerns:
New Industry Complaint Handling Standard should:
Where appropriate align with benchmarks set in AS10002
Ensure customers are informed about the TIO at all appropriate points in the process
Ensure timeframes support speedy responses from RSPs
Facilitate industry identification of systemic issues and rectify these across all customers affected

9. Consumer Protection New ACMA Rules
Record Keeping Rule – numbers of internal complaints
Should apply to all complaints not just those related to nbn
Should cover all providers not just those with 30,000 customers or more
Should require reporting on more than just the top three issues
ACCAN ‘s believes that the new ACMA Record Keeping Rule (RKR) is of vital importance to its ongoing monitoring of compliance and enforcement role.
Both industry and consumers continually highlight that we should not only focus on the escalated complaints statistics that are reported by the TIO quarterly as this is not a reflection of the health of the industry.
We completely agree and in fact we think that the new RKR will highlight providers that are doing the right thing and following up and taking action when they are contacted by their customers about complaints and make agreements to implement remedies.
We are being told by RSPs that this rule will encourage providers to dismiss consumer concerns and not record all complaints.
I think this would be entirely the wrong approach by providers because consumers judge providers on how they handle their complaints not on whether they get them in the first place.
Gas and electricity providers in Australia have been required to report their internal complaint statistics for a number of years and this has in fact been welcomed by many of the larger providers who have used these reports to their advantage.
I would urge the telco industry to embrace this new reporting regime and use it as a positive. I believe that this new reporting regime has the potential to build more trust in the telco industry as a whole.
ACCAN’s initial comments on the RKR are that it:
Should apply to all complaints not just those related to nbn
Should cover all providers not just those with 30,000 customers or more
Should require reporting on more than just the top three issues

10. Consumer Protection TCP Code Review
ACCAN has raised the issues in the following areas:
Accessibility for people with disability
Training
Authorised representatives
Critical Information Summary (CIS)
Mobile data add-ons
Selling practices
Customer service
Billing
Third-party charges
Credit assessment
Financial hardship
Number porting
Complaint-handling
ACCAN is involved with the current review of the TCP Code. We are one of two consumer groups participating on the Communications Alliance Code Working Committee, and have provided detailed suggestions for amendments in all Code chapters. Other representatives on the Working Committee are the major telcos, one small telco representative, the ACMA, the ACCC and the Department of Communications.
After consulting closely with ACCAN members, we have identified particular priority areas that we consider must be addressed in the review:
Accessibility for people with disability
Training
Authorised representatives
Critical Information Summary (CIS)
Mobile data add-ons
Selling practices
Customer service
Billing
Third-party charges
Credit assessment
Financial hardship
Number porting
Complaint-handling
Of particular note are two areas – Selling practices and Credit Assessment.
Selling practices: we see aggressive sales tactics and commission-based selling as pushing many vulnerable consumers into contracts they cannot afford. There needs to be stronger provisions in the Code to ensure such instances are reduced where possible, particularly around how incentives are structured.
Credit assessment: the Code should require more robust credit assessment processes that protects vulnerable consumers from being sold products and services they cannot afford and that are inappropriate for their circumstances. This is a growing issue due to the number of services upsold to customers now who may go in to buy a phone and leave with a tablet and/or wearable device when at no time their capacity to make payments is checked.
EXTRA NOTES IF MORE BACKGROUND REQUIRED IN QUESTIONS:
Accessibility for people with disability: providers must be obliged to inform customers with disabilities about products and services they sell that are appropriate to their needs, for example the accessibility features on smartphones. Currently they are only required to provide information about disability specific products such as TTYs.
Training: customer-facing staff should receive adequate training, in particular training that allows them to provide appropriate advice and service to vulnerable consumers
Authorised representatives: providers need more flexible policies to allow those who need it to more easily use an authorised representative.
Critical Information Summary (CIS): the CIS needs to be kept simple, accessible and more actively promoted to all customers prior to them making a purchase; it must also be available as long as a consumer is on that plan as an easy reference point.
Mobile data add-ons: the automatic top-up function when customers run out of data on their mobile services should be an opt-in service. It is currently automatically applied, at 1GB for $10.
Customer service: this includes issues such as wait times, first contact resolution, record keeping, knowledge levels of staff and accuracy of information provided. ACCAN constantly hears of unsatisfactory customer service experiences, and we are seeking to have these provisions tightened.
Billing: this includes issues such as prohibiting charging for paper bills, including financial hardship policy information on bills, providing a free payment method other than direct debit, usage tracking information, and direct debit issues
Third-party charges: the TCP Code does not currently have any provisions to protect consumers from unwanted third-party charges. The Code should require that third party charging be an opt-in facility requiring account holder authorisation.
Credit assessment: the Code should require more robust credit assessment processes that protects vulnerable consumers from being sold products and services they cannot afford and that are inappropriate for their circumstances.
Financial hardship: customers facing financial hardship deserve to be treated fairly and with empathy by their providers. We see the Code as an important way to improve the systems and processes implemented by providers to better help consumers facing hardship.
Number porting: there have been cases of fraudulent number porting that necessitate a more robust verification process when providers transfer customers. Transfer times also need to be more transparent as these can vary between providers.
Complaint-handling: whilst this chapter of the Code may be removed in light of the new ACMA complaint-handling standard being developed, we see a need for more transparency around complaint-handling processes and information about the TIO. We would be concerned about removing this chapter in light of the fact that should the standard ever be removed that there would not be adequate consumer protection in this area.

11. Future Consumer Safeguards
What do we need in the future communications service environment for:
Telco Reform Package passed in Parliament
New Low income measures
Priority Assistance Review
New Customer Service Guarantees linked with Wholesale Service Standards with clear reliability measures
An enforceable TCP Code with high levels of compliance
A USG for adequate voice and data
ACCAN welcomes changes to the Telecommunications Reform Package legislation introduced into Parliament last year as a big win for all consumers, especially for those in regional, rural and remote areas. A number of ACCAN’s concerns will be addressed by the legislation as it contains improved consumer protections. Broadband services are essential for consumers, yet currently, there is no requirement on nbn to connect and provide ongoing services to all premises. This legislation creates that obligation.
MORE INFO IF ASKED QUESTIONS:
In particular, we welcome:
Statutory Infrastructure Provider provisions which will now ensure that all premises can access a network capable of delivering peak retail plans of 25Mbps download speed and 5Mbps upload speeds.
That no areas will be exempt from the provision.
And that voice capability will be ensured over fixed line and fixed wireless areas – satellite is not expected to be able to make voice calls.
New powers for the Minister to make standards, rules and benchmarks that SIPs must comply with. These powers can be used to set more detailed service standards, such as timeframes for connecting services and rectifying faults.
The Regional Broadband Scheme, which is also included in the legislation, will ensure regional services are funded sustainably and transparently. There are economic and societal benefits in having everyone connected, therefore ensuring that broadband services are funded sustainably into the future is vital.
The measures introduced in the legislation are the first step toward ensuring adequate consumer protections can be put in place for future broadband and phone services. We must also ensure that public phones will be provided where they are needed and consumers relying on satellite services have access to reliable telephone and broadband services.
We need:
Legislation enacted as soon as possible
Minister to use his powers to make sure networks perform to service standards
The Department of Communications and the Arts will be conducting a review of consumer safeguards, and we anticipate a wide ranging conversation including covering areas such as low income measures for future communications services; future customer service guarantees and reliability measures; Priority assistance provision for those who need it, privacy protection and more.
We look forward to continuing to work on these issues and find resolutions so we get better outcomes for consumers going forward.

12. From USO to USG ACCAN inital position:
Community services such as payphones in some locations will also be required.
Overwhelming response from community - consumers still want payphones
Mobile coverage is not adequate for in home phone services on its own
Copper Continuity Obligation must continue until there is an alternative that can provide adequate telephony services
We welcomed the Government’s response to the PC USO Inquiry. There remains much to be done and considered before we can transition from the USO to the newly announced Universal Service Guarantee that will cover both voice and data. We are pleased that the government has already commenced a wide ranging consultation.
ACCAN is concerned that consumers who are reliant on satellite services and do not have adequate mobile coverage may lose access to voice services.
Here is the summary of ACCAN’s initial positions on the UNVERSAL. We will be consulting our members extensively as the government’s consultation progresses.

13. Rural & Regional Rural Regional and Remote Communications Coalition
Upcoming Regional Review
Mobile Coverage
Now on to Rural and Regional consumer issues.

14. Rural Regional and Remote Communications Coalition (RRRCC)
There are now 21 organisations with extensive networks across regional and remote Australia in the Rural, regional and remote Communications Coalition started nearly 15 months ago and headed up by National Farmers Federation.
Together the RRRCC have met with the majority of federal members of parliament over the past 12 months and raised the profile of their issues and their concerns.
ACCAN has been very pleased to provide policy advice to the coalition and assist where ever possible to get their messages across to the broader community.

15. Regional Telecommunications Independent Review Committee
2018 Regional Independent Review - ToRs yet to be announced.
Some Issues RRRCC will likely raise:
Mobile Black Spots Round 4,5,6
Regional Telecommunications Fund
Funding for Digital Capacity
One of the key areas for engagement for the RRRCC and ACCAN on rural and remote consumer issues will be the Regional Telecommunications Independent Review Committee (RTIRC or the Regional Review).
The Terms of Reference (ToRs) and membership are yet to be announced and many have commented do we really need another review so soon after the last one in 2015.
ACCAN and the RRRCC are welcoming the opportunity for an independent committee to once more put the issues of rural and remote communications users into the spot light again.
And at the same time that no-one in regional areas would deny that there have been advancements and improvements over the past three years, the reality is “country” consumers are still far behind “city cousins in what and how they access communications services.
And technology advances faster than the networks in regional areas can deliver anything close to equivalence with metro areas. Yet ironically rural and remote consumers and businesses rely even more heavily on access to communications services.
Issues we will likely raise that have been set out by the RRRCC and in pre-budget submissions include funding for a Regional Telecommunications Fund and for Digital Capacity building.

16. Australia’s Coverage Challenge
Call for Mobile Black Spots Program – Round 4,5,6
Future state govt funding & co-investment needed
Open access on publicly funded infrastructure
Options for areas where co-investment is not an option
More flexibility in funding eg subsidising legal repeaters
Other Developments
ACCC Regional Mobile Forum
Review of the Facilities Access Code
Review of the access to the Domestic Transmission Capacity Service
 There is still much debate about how best to improve coverage of mobile in regional areas even though we have moved past the ACCC decision not to declare roaming.
ACCAN is keen to see the following:
Call for Mobile Black Spots Program – Round 4,5,6
Future state govt funding & co-investment needed
Open access on publicly funded infrastructure
Options for areas where co-investment is not an option
More flexibility in funding eg subsidising legal repeaters
Other Developments include:
ACCC Regional Mobile Forum recently held in Canberra (Report can be downloaded)
Review of the Facilities Access Code
Review of the access to the Domestic Transmission Capacity Service

17. Better Regional Mobile Coverage
Clearer information about where coverage extends so farmers can invest in new tech
Cheaper access to legal boosters
Better consultation with communities about future infrastructure
Longer battery back-up to extend coverage in electricity outages
Case studies that were presented at the ACCC Regional Mobile Forum in Canberra in March from BIRRR, NSW Farmers, Isolated Children and Parents highlighted the additional cost
Better Internet for Rural, Regional and Remote Australia
A survey conducted by BIRRR in 2016 shows that:
72 per cent of mobile broadband users had to purchase additional equipment at their own expense (between $1000 and $2000) to access reliable coverage,
73 per cent of respondents do not have reliable mobile coverage at home, and o 42 per cent of Sky Muster users do not have mobile coverage,
the use of illegal boosters impact the quality of mobile coverage in regional areas.
There is a lack of information and therefore awareness on whether certain boosters are legal, or how to correctly use boosters,  there is a lack of community consultation on where mobile infrastructure should be deployed to better target the needs of the communities,
there is poor customer service when dealing with the service providers and a lack of understanding of the particular issues faced by regional consumers and businesses,
there is a lack of consumer information on mobile coverage, and
 mobile towers need longer battery backup in the event of outages.

18. Affordable Communications
Despite the conclusion from the recent ACCC Market Study which indicated a trend for the price of broadband coming down overall,
ACCAN remains concerned about affordability for low income consumers.
There has not been any progress on the much discussed review of the current Low Income Measures which only apply to Telstra.
There has also been no response to our call on the government to review the Commonwealth Telecommunications Allowance. The CTA is a very small amount and only some benefit recipients are eligible.
Recent data analysis of the most recent ABS house hold expenditure just underlines the need to act sooner rather than later.

19. Telecommunications Expenditure in Australia
ACCAN worked with Dr Greg Ogle of the South Australian Council of Social Services to analyse the detailed telecommunications data from the Australian Bureau of Statistics’ Household Expenditure Survey. This analysis provides a more detailed view of the telecommunications expenditure of different groups in Australia.
Some key findings are that:
Telecommunications is a significant household expenditure item and on average, households spend more on telecommunications than on energy or water;
Children are a key factor in increasing telecommunications expenditure;
Telecommunications expenditure is significantly regressive, accounting for nearly three times the proportion of household disposable income for the lowest income quintile as for the highest quintile;
Lone person households, pensioners and other social security recipients, and those renting (particularly from state housing authorities):
spend proportionately more of their income on telecommunications than other households, but
spend significantly less on telecommunications - and are therefore likely to be more digitally excluded;
Since 2003 telecommunications expenditure has been increasing for households on lower incomes, while average households have seen decreases in recent years.
The ABS data analysis shows similar trends already identified by the Australian Digital Inclusion Index which is reaserch funded by Telstra and conducted by RMIT, Swinburne University and Roy Morgan.

20. SAVE
THE
DATE
Finally before I finish up a quick plug for ACCAN’s annual conference so you save the date.
This year’s theme for ACCANect is “Confidence in the Connected World”

21. Your consumer voice on phones and internet
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Thanks once again to Commsday for the invitation and I wish you all the best for the rest of the Summit.