NO.076

JOINT MEDIA RELEASE

GOVERNMENT RESPONSE TO RADIOCOMMUNICATIONS REPORTS

The Treasurer, Mr Peter Costello, and the Minister for Communications, Information

Technology and the Arts, Senator Richard Alston, today announced the tabling

in the Parliament of the Radiocommunications

Review Report and the Productivity

Commission’s Radiocommunications Inquiry Report, along with the Government’s

response.

The two reviews were established to assess legislation restricting competition

or imposing costs or benefits on business. The Government has accepted 35 of

the 47 recommendations contained in the two reports.

‘The recommendations accepted by the Government were soundly-based and their

implementation will enhance the efficiency of Australia’s radiocommunications

legislative framework-under which radiofrequency spectrum is allocated for services

such as mobile telephony, satellite Internet, microwave broadcasting links and

other wireless applications,’ said Senator Alston.

‘The Government has rejected only six recommendations, the most significant

of which dealt with changes to competition rules. The Government has decided

to retain existing pro-competitive legislative provisions enabling a Ministerial

direction to be issued to limit the amount of spectrum any bidder can acquire

in a spectrum auction. These provisions can also be used to encourage a new

market entrant by limiting or excluding the participation of a dominant incumbent

in such an auction,’ said Mr Costello.

‘The Government will be seeking further information on another six recommendations.

In particular, the Government will examine the wider regulatory, budgetary and

other implications of the Productivity Commission’s recommendation that spectrum

licences issued from July 2004 should have perpetual tenure.’

The Radiocommunications Review evaluated the appropriateness, effectiveness

and efficiency of the radiocommunications regulatory regime and made a total

of 18 recommendations. These recommendations are mostly concerned with enhancements

to the Australian Communications Authority’s (ACA) administrative processes

in order to improve the efficiency and transparency of spectrum management in

Australia.

The Productivity Commission’s Radiocommunications Inquiry reviewed the market-based

radiofrequency spectrum management reforms incorporated into the radiocommunications

legislative framework, and the performance of the ACA in administering these

reforms. The Commission made a total of 29 recommendations for legislative and

non-legislative improvements to further, and more efficiently, progress the

implementation and operation of the market-based reforms. The Commission’s Inquiry

concluded that the ACA has ‘…done a commendable job in a challenging technical

and commercial environment’.

Senator Alston said that amendments to the Radiocommunications Act 1992

would be developed in 2003.

The Radiocommunications

Review Report, the Productivity

Commission’s Radiocommunications Inquiry Report and the Government

Response to their recommendations can be accessed through the Department

of Communications, Information Technology and the Arts website at www.dcita.gov.au.

CANBERRA

5 December 2002

Contacts: David Alexander (Treasurer’s office): 02 6277 7340

Simon Troeth (Sen. Alston’s office): 02 6277 7480 or 0439 425 373