Concept Economics - News

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Fri, 28 Aug 2009 11:54:47 PST

Australia: ACCC announces draft pricing principles & indicative prices for fixed line services
The Australian Competition and Consumer Commission (ACCC) has issued the draft pricing principles and indicative prices for the following fixed line services - the unconditioned local loop service (ULLS); the line sharing service (LSS); the public switched telephone network originating access (PSTN OA) service; the public switched telephone network terminating access (PSTN TA) service; the local carriage service (LCS); and the wholesale line rental (WLR) service. The ACCC says the draft pricing principles, which apply for the next three years, propose that all six services will be priced on a cost basis – with prices rising every year. Metropolitan ULL access rates would rise from the current price of $A14.30 to $A16.90 in 2010, and by more than $A23 in 2011-12. Telstra has reacted to the rejection of its $A30 per month wholesale undertaking for ULLS by filing an appeal in the Federal Court. Telstra argues that wholesale ULLS prices in metropolitan areas are far too low. The price rise proposals have also reportedly been criticised by the CEO of Primus Telecom, who apparently maintains they are "impossible to justify". Access the 'Review of fixed line wholesale services pricing 2009–2012' here.
Related article: 'ACCC's radical revamp of fixed service pricing'
Source: ZDNet Australia, ACCC Media Release & iTWire

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Fri, 28 Aug 2009 11:48:36 PST

Australia: Report assesses effects of mobile termination regulation on consumer benefits
Concept Economics recently published a report that assesses the effects of mobile termination regulation on consumer benefits and total surplus relating to the mobile market. According to Concept Economics, "Key to this analysis is defining the relevant factual and counterfactual outcomes – that is, what would happen with and without regulation, respectively". Access the commissioned report, titled 'Assessment of the Consumer Benefits of Mobile Termination Regulation in New Zealand', here.

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Fri, 28 Aug 2009 11:40:43 PST

Australia: MPS content provider engaged in misleading advertising - court
The Federal Court recently found that Teracomm, a Bulgarian mobile premium service (MPS) content provider, engaged in misleading advertising. The ACCC said Teracomm's services advertised in a teen magazine in May, June and July 2008 were misleading, because they did not clearly show the nature of the service being offered and their costs. In addition, the company failed to make clear that consumers would be entering into a service for which a weekly fee would be charged until the service was terminated. The action in the Federal Court was initiated by the ACCC.
Source: ACCC Media Release

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Fri, 28 Aug 2009 11:33:55 PST

Australia: TNBNco objectives leave door open to subsidies - Liberal
The Liberal Party Senator for Tasmania, Guy Barnett, reportedly believes the objectives of the Tasmanian National Broadband Network Company (TNBNco) suggest the FTTP network could be taxpayer subsidised if needed, thus undermining the Australian government's claim it would be commercially viable. Senator Barnett also noted that adoption rates for the government's broadband plan were projected at around 20% by some industry sources, suggesting subsidies may be needed.
Source: AustralianIT & Guy Barnett Media Release

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Fri, 28 Aug 2009 11:27:46 PST

Australia: Use of Infrastructure Bonds would afford NBN greater "market-based discipline"
The Productivity Commission, in its submission to the Senate Select Committee on the National Broadband Network (NBN), maintains that the government should deploy Australian Infrastructure Bonds to afford the NBN greater "market-based discipline". According to the PC, "Such bonds, if structured appropriately, can provide a level of market-based discipline to the project. To achieve this, the bonds need to be serviced from income generated by the infrastructure project rather than from general tax receipts". Noting that the owners/operators of the NBN will be required to occassionally upgrade and refurbish their infrastructure, the PC also says it "is important that where private entities are responsible for such investments, they are not deterred or impeded from doing so by the regulatory environment". Access the PC's submission here.
Source: WA Today

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Fri, 28 Aug 2009 11:21:01 PST

Australia: NBN to deliver economic & social benefits – ICT experts
An ARNnet survey of some of the leading ICT experts in Australia reveals consensus that the economic and social benefits of the government's FTTP National Broadband Network (NBN) would justify the $A43 billion rollout cost. A number of the analysts also indicated they thought the final cost of the project could be significantly less than forecast by the government. Others saw indirect benefits resulting from the NBN, through resulting enhancements in eHealth, education, and smart grids.
Source: ARNnet.com

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Fri, 28 Aug 2009 11:15:11 PST

Australia: Firm offers short-term mobile broadband solutions
A firm based in Western Australia is offering short-term mobile broadband hire for businesses. The company, called 'Laptop Connect', rents out USB modems connected to Telstra's Next G network according to a daily scale - $A11 a day for a 3-day minimum, with prices falling to $A5 a day for a full month. The modem is rated at Next G's peak speed of 7.2 megabits per second.
Source: WA Today

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Fri, 28 Aug 2009 11:11:36 PST

Australia: TIO releases customer service report findings
The office of the Telecommunications Industry Ombudsman (TIO) recently released its report on the customer service perfomance of Australia's telecoms service providers. Service providers that recorded an increase in the number of consumer complaints filed against them were Dodo (+33.2%), Hutchison 3 (+22.4%), Optus (+18.4%), Vodafone (+13.6%), GoTalk (+9.1%) and AAPT (+6.3%), while those that recorded a drop in complaints filed against them were Soul (-43.1%), Virgin Mobile (-21.5%), Primus (-12.8%) and Telstra (-1.7%). Access the TIO's connect.resolve public report here.
Related articles: 'TIO: We're doing the telcos' job for them' & 'Complaints against telcos rise'
Source: TIO Media Release

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Fri, 28 Aug 2009 11:01:06 PST

Australia: Decline in Telstra's customer service complaints
The Telecommunications Industry Ombudsman (TIO) reports a decline in the number of customer complaints about Telstra's service. The number of complaints lodged against the telco dropped by 1.7% in the first half of this year. The TIO, Ms Deirdre O'Donnell, attributes Telstra's stronger performance to a greater emphasis being placed on customer service under the leadership of new CEO, David Thodey.
Source: The Age

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Fri, 28 Aug 2009 10:56:47 PST

Australia: iiNet claims it could not have disconnected alleged pirates without breaching Telecoms Act
One of Australia's largest broadband ISPs, iiNet has announced a new line of defence in the case mounted against it by the music industry, which accuses it of not doing enough to stop the downloading activities of some of its subscribers. The case is currently before the Federal Court and has been mounted by the Australian Federation Against Copyright Theft (AFACT), which claims iiNet failed to "take reasonable and appropriate steps" to stop online piracy over its network. iiNet now claims that under the provisions of the Telecommunications Act, it could not disconnect the customers accused - but not proven - to have have committed piracy, as this would breach the privacy regulations of the Act.
Source: AustralianIT

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Fri, 28 Aug 2009 10:47:44 PST

New Zealand: IOG upholds complaints against Telecom Wholesale's 'loyalty offer'
The Independent Oversight Group (IOG), which was established to monitor and report on Telecom NZ's compliance with its Separation Undertakings given to the New Zealand government, has upheld complaints against Telecom Wholesale's so-called 'loyalty offer'. Apparently the IOG found non-trivial breaches of clause 56. In addition, there could also be non-trivial breaches of clause 57 of the Undertakings "if the contracts are still in effect on 30 September 2009". The alleged breaches apparently apply to Telecom's wholesale deals for Woosh, CallPlus and others, and could result in Telecom facing a $NZ10 million fine. The investigation was initiated after complaints from Orcon and Vodafone that they had been discriminated against by Telecom's 'loyalty pricing' for those resellers that did most of their business with Telecom Wholesale in Auckland and the regions. Orcon and Vodafone say this scheme acted as a disincentive to rivals from unbundling in Telecom's phone exchanges. Orcon says the decision by the IOG to uphold complaints against the loyalty offer "is a positive step".
Source: The Independent (via Stuff), National Business Review, Orcon Media Release & Computerworld New Zealand

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Fri, 28 Aug 2009 10:34:59 PST

Canada: Govt announces support for next-gen mobile satellite R&D
The Canadian government has announced financial support for a next-generation mobile satellite communications research and development project. The project will be undertaken by EMS Technologies Canada, and will involve the development of new products and applications for its products - such as transceivers, antennas and networking systems. According to the government, the end-products will benefit a variety of users, such as national security forces and commercial travellers, who will "profit from improved in-flight communications".
Source: Industry Canada Media Release

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Fri, 28 Aug 2009 10:33:00 PST

US: AT&T iPhone subscribers to be 'forced' onto data plans
It has been reported that AT&T is planning to force its iPhone subscribers onto data plans. The requirement, which will apparently commence 6 September 2009, will mean the telco's smartphone users will no longer be able to use their device just for making calls. One industry watcher believes the move is about AT&T boosting revenues by increasing mobile data usage.
Related article: 'iPhone vs Google Voice'
Source: MediaPost

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Fri, 28 Aug 2009 10:17:56 PST

US: Wi-Fi popularity grows in leaps & bounds
It has been reported that the Google Wi-Fi network currently transports around 600 gigabytes of user data, which is twice the volume from 2 years ago. This significant usage growth is being driven by the iPhone and other Wi-Fi enabled handheld devices. This trend towards smartphone access of Wi-Fi networks is also being experienced by AT&T's Wi-Fi network, with 49% of users connecting using a smartphone. AT&T reports that in 2Q2009, it handled nearly 15 million Wi-Fi connections on its network, a 41% increase over 1Q2009. AT&T says that with approximately 25.6 million connections so far in 2009, Wi-Fi connections this year have already surpassed the 20 million connections seen in all of 2008. The growing popularity of Wi-Fi is also supported in a survey conducted by Devicescape, which found that 84% of respondents wanted citywide Wi-Fi, 91% expect it when travelling, 56% are willing to pay for citywide Wi-Fi access as a utility, while 79% maintain that Wi-Fi should be free.
Source: Muni Wireless, Tropos Media Release, AT&T Media Release & GigaOm

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Fri, 28 Aug 2009 09:47:56 PST

US: FCC supports Net Neutrality & seeks universal access to new wireless services
The head of the Federal Communications Commission (FCC), Julius Genachowski, recently indicated that the agency would support Network Neutrality and prosecute those who abuse open Internet principles. Mr Genachowski also expressed concern about the availability of universal access to new wireless services. The FCC has indicated it may consider holding an inquiry into the wireless industry. Various practices conducted by some wireless companies have been described as being "harmful to competition and consumer choice".
Source: CongressDaily & The Hill

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Fri, 28 Aug 2009 09:28:19 PST

US: Little improvement in Internet speeds - report
A new report by Speed Matters, a project of the Communications Workers of America (CWA), titled 'Internet Speeds in America', has found little progess has been made since it last monitored the situation. According to the study, the average download speed in the US between 2007-09 increased only 1.6 megabits mbps - from 3.5 mbps in 2007 to 5.1 mbps in 2009. Of the connections tested, 18% did not meet the FCC definition for current-generation broadband. Location was also a factor in the quality of broadband received, with the Northeastern or Mid-Atlantic states offering good high-speed Internet options. Access Speed Matters' 2009 state rankings and a comparison of the average download and upload speeds in 2008 here, and the 'Internet Speeds in America 2009' report here.
Source: SpeedMatters Blog

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Fri, 28 Aug 2009 09:20:48 PST

Europe: Resistance to concept of paying for online content
The European Commission's annual digital competitiveness report shows that more than 50% of Europeans say they would not pay for online content. In 2008, just 5% of respondents purchased music or videos on the Internet in the three months before the 'Eurostat Community Survey on ICT Usage by Households and by Individuals' was conducted. While piracy remains a major issue, legislative moves to address the problem have been strenuously resisted by both Web users and ISPs. As one observer states, "Boundaries between copyright protection and online users' rights are difficult to define". Access the EC's 'i2010 report' here.
Source: Euractiv

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Fri, 28 Aug 2009 09:17:15 PST

Ireland: Eircom directed to lower line sharing costs with rivals
Irish communications regulator ComReg has directed incumbent telco Eircom to substantially lower its line sharing costs with rivals. The move is designed to expand competition in Ireland's broadband market by acting an investment in critical infrastructure. The charge will be lowered from the current EUR8.41 per line per month to 77c per month. It has also been reported that ComReg is currently consulting on reducing the WLR price down to EUR12.48.
Source: Ireland Online & Business & Leadership

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Fri, 28 Aug 2009 09:09:57 PST

Italy: Broadband providers enter fixed network sharing deal
Italian broadband telecommunications companies Fastweb and Wind have announced they will cooperate together in fixed network sharing in Italy. The two alternative telcos have signed a memorandum of understanding (MoU) that observers say will allow them to offer next-generation access (NGA) networks, which is seen as an essential step in the competitive Italian broadband market. The MoU will allow the telcos to share the cost of Telecom Italia's network access prices. Both will reportedly share co-location spaces and backhaul capacity in Telecom Italia's central exchanges, in addition to sharing access to fibre ducts, dark fibre and transmission capacity. Italy's communications regulator, Agcom recently increased Telecom Italia's unbundled local loop price by more than 11%.
Source: Ovum News & Billing World

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Fri, 28 Aug 2009 08:55:59 PST

UK: IPTV project has capacity demand implications for ISPs
A new on-demand broadband TV service planned for the UK – called 'Project Canvas' – is due to be launched in 2010, according to a comment made by the BBC's Controller of Business Strategy, Richard Halton. The IPTV project, supported by some of the UK's biggest broadcasters - the BBC, ITV, Channel Five and BT – aims to have Freeview HD television available to at least 50% of all UK homes before World Cup 2010 football matches as a way of convincing content providers to lower premiums for viewers. Those involved in IPTV are also looking at ways of dealing with projected capacity demand on ISPs resulting from heavy bandwidth usage linked with IPTV.
Source: Broadband Genie, IPTV Watch & Digital Spy