Telephone numbering-Future directions - ACMA
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Canberra Melbourne Sydney Purple Building Level 44 Level 5 Benjamin Offices Melbourne Central Tower The Bay Centre Chan Street 360 Elizabeth Street 65 Pirrama Road Belconnen ACT Melbourne VIC Pyrmont NSW PO Box 78 PO Box 13112 PO Box Q500 Belconnen ACT 2616 Law Courts Queen Victoria Building Melbourne VIC 8010 NSW 1230 T +61 2 6219 5555 T +61 3 9963 6800 T +61 2 9334 7700 F +61 2 6219 5353 F +61 3 9963 6899 1800 226 667 F +61 2 9334 7799 © Commonwealth of Australia 2011 This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and inquiries concerning reproduction and rights should be addressed to the Manager, Editorial Services, Australian Communications and Media Authority, PO Box 13112 Law Courts, Melbourne Vic 8010. Published by the Australian Communications and Media Authority.
Contents Executive summary 1 1. Background 7 1.1 The numbering work program 7 1.2 Pressures 7 1.3 Assumptions 9 2. How telephone numbers are specified 10 2.1 General purpose numbers 11 2.1.1 Geographic numbers 12 2.1.2 Mobile numbers 15 2.1.3 Location independent communications service (LICS) numbers 17 2.1.4 Satellite numbers 19 2.2 Business and information numbers 20 2.2.1 Freephone and local rate numbers 20 2.2.2 Premium numbers 21 2.2.3 Directory assistance and information services on shared numbers 22 2.3 Limited use numbers 26 2.4 Access codes 28 3. How the Numbering Plan is structured 29 4. Number management and charging 32 4.1 Institutional arrangements for allocation 32 4.2 Allocation mechanisms 33 4.3 Scarcity of numbers 36 4.4 Charging for numbers 36 4.5 Managing numbers 38 5. Supporting future flexibility 42 5.1 Location information and security and safety 43 5.1.1 Future of the IPND 44 5.2 Switching communications providers 45 5.3 Future monitoring 46 6. Making a submission 47 6.1 Effective consultation 47 6.2 Publication of submissions 47 6.2 Release of submissions where authorised or required by law 47 Appendix 1 48 acma | iii
Executive summary Historically, the regulation of numbers through the Telecommunications Numbering Plan 1997 (the Numbering Plan) predominately reflects the physical elements of the legacy network architecture. The existing arrangements have facilitated a range of policy outcomes and underpinned the structure of addressing used by the telecommunications network. The Numbering Plan has also codified many of the operational measures that the telecommunications industry has needed to help it manage public communications networks. Fundamental change is now occurring in the networks and technologies delivering communications services. The pace of change is expected to accelerate in the foreseeable future, not least as a consequence of the rollout of the National Broadband Network (NBN) and a range of next generation network (NGN) technologies currently being deployed by network operators. The dimensions of these changes in technologies, markets and behaviours are expected to have a profound effect on how Australians use communications, the benefits that are derived from communications and the measures that realise those benefits across the Australian economy and society. Today, the basket of transmission technologies collectively described as ‗internet protocol‘ (IP) are increasingly pervasive. Increasingly the regulation of telephone numbers based on the predominance of voice services in communications is strained 1 or broken. Substitute forms of electronic addressing and the growth in digital/IP services are progressively supplementing the significance of voice services in communications. Through its numbering work program, the ACMA has explored the impact of these changes on telephone numbering and sought feedback on appropriate responses to them. The numbering work program has tested the role that regulation of numbers plays in this changing environment. During this work, the ACMA considered the many representations it received about numbering over recent years from consumer groups, government agencies, existing industry participants, new players in the communications market and potential new entrants to that market. Through the work program, the ACMA has formed a view that the current arrangements are under significant pressure as a result of change in technology (both at the device and network level), commercial arrangements and consumer behaviour. Major changes in service delivery and charging are expected to continue. Against this backdrop, the ACMA has confronted a stark choice in considering how the existing regulatory framework might accommodate change, namely whether to: > pre-emptively undertake substantial transformation of the regulatory arrangements (perhaps, arguably, radical transformation); or > develop an approach that aims to provide a more managed evolutionary path for change. 1 On 29 August 2011, the ACMA released Broken concepts—The Australian communications legislative landscape, a research paper that examines how the process of convergence has systematically broken or significantly strained many of the legislative concepts that form the building blocks of current communication and media regulation. acma | 1
Respondents to the consultation conducted by the ACMA as part of the numbering work program had mixed views about the scale and scope of any variation to current numbering arrangements. The case for pre-emptive change (that is, substantial transformation) was supported by some newer carriage service providers (CSPs) and internet service providers (ISPs). More established providers observed that, given the ongoing change underway in the broader communications environment, significant changes in regulatory arrangements would be undesirable and increase uncertainty at this time. The ACMA also conducted research among residential and small- and medium-sized business consumers to assess how they are now using communications services, the information they use from telephone numbers and how that information helps them to manage their communications services. The ACMA has formed a view that an actively managed evolutionary path is the more desirable approach to minimise the short-term adjustment costs to industry, information costs to consumers and any unintended consequences from changes to the regulatory settings—and therefore achieves the best balance. However, the ACMA‘s view is that the Numbering Plan will need to be actively managed over the short, medium and longer term. The ACMA developed a set of principles to guide the continuing evolution of numbering regulation, which was widely accepted by respondents. These principles guided the consideration of the present—as well as any future and transitional— regulatory frameworks for numbering, including the allocation methodologies and institutional arrangements. The four principles for the regulatory and administrative framework for numbering are: > efficiency, so that it leads to the continued supply of communications services in accordance with the public interest, at least cost, even as preferences change and technologies develop over time > flexibility, so that it is able to evolve over time and respond to the changing needs of the communications environment > resilience, so that it stands the test of time > simplicity and transparency, so that it facilitates consumers making informed choices about their use of communications services. As a key component of that framework, the Numbering Plan has been subjected to considerable scrutiny throughout the numbering work program. It is generally regarded as a cumbersome legislative artefact that has the potential to unnecessarily raise information costs for industry and—to the extent that it is unnecessarily complex and prescriptive—raise barriers to innovation. To assist with the evolution of the Numbering Plan, the ACMA has developed the following design principles: > broad-based use of numbers, so that the use of numbers is not unduly restricted by the Numbering Plan > technical neutrality, so that the specification of numbers based on the technical characteristics of the service or the platform over which it is provided is minimised in the Numbering Plan > price transparency, so that where it is necessary to use numbering to facilitate end users recognising the costs of calls, this is supported by the structure of the Numbering Plan > clarity, so that the structure of the Numbering Plan is simple and capable of being readily understood. These principles will inform future work. As the first step, on 11 October 2011, the ACMA announced that it would commence consultation on a package of short-term measures intended to improve flexibility and remove redundant provisions and unused number ranges. As part of this package of near-term measures, the ACMA also 2 | acma
commenced further consultation about changes to charging arrangements for freephone and local rate numbers. This package of near-term measures is available on the ACMA website. This future directions paper sets out the ACMA‘s vision for medium to longer term changes to the Numbering Plan, consistent with the principles for the regulatory framework. It also indicates what specific actions could be taken and identifies when these could occur or, alternatively, what might be the triggers for change. The ACMA‘s broad vision for how the regulation of numbers might evolve is depicted in Figure 1. It shows the transformation of numbering regulation from the current arrangements that are technology- and service-specific, complex and rigid to arrangements that allow the flexible use of telephone numbers in the long term beyond 2020. The medium term shows an increasingly broad-based use of numbers, improved price transparency and clarity. acma | 3
Figure 1 The evolution pathway for numbering arrangements 4 | acma
There are key points on the evolutionary path described above. Applying the above principles to specific issues identified in the numbering work program has led the ACMA to the following future directions: 1. Rationalise number ranges over which like services are provided (where they are currently separated only because of technical characteristics of service delivery) to allow for the broad-based use of numbers and improve technical neutrality in the structure of number ranges. 2. Remove redundant number ranges and return unused numbers to the pool for reallocation to improve efficiency in the use of numbers. 3. To the extent that numbers continue to be used to provide price signals — these should be clear and consistent. 4. Work towards a Numbering Plan that reflects key objectives, principles and legislative requirements, with a staged migration of procedural rules to codes and guidelines. 5. Simplify and clarify the Numbering Plan to minimise the costs associated with the management of numbers. 6. Provide for an enhanced service provider role in the allocation and administration of numbers, but with adequate governance and appropriately managed risk. 7. Minimise potential distortions in the charging arrangements for numbers. 8. Maintain an evaluation and monitoring role in relation to the changing environment for numbering regulation, so that changes can be made as new issues emerge, in the expectation that change will continue for the foreseeable future. The application of these future directions to specific matters raised in the numbering work program, which the ACMA regards as medium- to long-term issues, are identified in detail in the paper, along with supporting actions and indicative time frames for change. These actions are summarised at Appendix 1. In conducting the numbering work program, the ACMA has also identified some matters for which change will be more gradual and/or may be contingent on particular triggering events. For example, the future of the Integrated Public Number Database (IPND), which is currently subject to government review, falls outside the scope of the future directions set in this paper. Over time, the existing IPND arrangements can be expected to be challenged by new networks and commercial models. Similarly, regulation of untimed local call arrangements might be expected to decline in significance as more and more fixed-rate national call offerings become available— pricing on the basis of data rather than time is expected to become increasingly prevalent. More broadly, the future use of numbers specified in the Numbering Plan can be expected to be increasingly challenged by alternative electronic addressing schemes, which might require quite different responses from government, industry and consumers. Figure 2 shows how the individual actions proposed in this paper sit within the broader context of communications. The individual actions are depicted below the timeline arrow, while changes anticipated in the wider communications landscape are depicted above the arrow. The ACMA‘s approach to these more contingent future possibilities is to continue to observe change and evaluate the need for intervention as required. The ACMA has appreciated the high level of engagement on numbering experienced through the numbering work program and will continue to work with stakeholders to achieve optimal interventions. acma | 5
Figure 2 Summary of proposed actions in an environmental context 6 | acma
1. Background 1.1 The numbering work program During 2010 and 2011, the ACMA examined a wide range of issues related to the regulatory framework for telephone numbers. This was in response to: > issues raised by consumers and industry through the ACMA‘s Numbering Advisory Committee > pressures as a consequence of technical innovation, innovation in services and business models, and changes in consumer behaviour, many of which have been raised during consultations by the ACMA about numbering and related matters > difficulties faced by industry participants in achieving compliance with current numbering obligations, or the undesirable consequences of achieving compliance > the complexity of present numbering arrangements. The aim of the numbering work program was to identify what, if any, changes are needed to the current telephone numbering arrangements to enable it to be a flexible, efficient and effective framework for the future communications environment. The numbering work program was not concerned with the use of numbering, naming and addressing in all IP communication networks and services, and specifically is not concerned with the arrangements for electronic addresses or application-specific identifiers. Four consultation papers were released: 1. Structure of Australia’s telephone numbering plan (October 2010) examined the pressures on the structure of phone numbers, including the cost of calls from mobile phones to freephone and local rate numbers (which are commonly used by organisations to provide crisis help lines). 2. Customer location information and numbering data (January 2011) examined the derivation of customer, service provider and location information from numbers, especially by emergency services organisations, and how the objectives of these users may be met in an evolving and converging communications market. 3. Allocation and charging of numbers (March 2011) examined the administration of numbering and associated institutional and charging arrangements. 4. Implications of research into consumer issues (May 2011) examined the use of information in numbers by end users, including for assessing the cost of calls, identifying callers and identifying the location of a called party. Anyone who wishes to explore the issues raised here in more detail are encouraged to refer to these papers and the submissions received in response to them, which are available on the ACMA website. 1.2 Pressures The current regulatory arrangements for telephone numbers have their antecedents in the operational rules established by the government provider of telecommunications in the 1960s. During the 1990s, modifications were made to the arrangements to accommodate competition in supply, but these also reflected the technologies and supply models of that time. Today, these arrangements are under pressure from changes in network and device technology, business models, charging arrangements, and user expectations and behaviour. In some cases, these changes have made the regulation of telephone numbers redundant. In other instances, information intended to provide transparency to consumers has failed to do so when consumer behaviour has changed or where this information was not understood in the first place. acma | 7
There have been significant changes in the kinds of services available to residential and business users, and in how these services can be used. For example, the framing of current regulatory arrangements pre-date the widespread availability of the internet and the growth of packetised transmission technologies, which are now fundamental 2 to delivering telephony as well as other communications services. In many respects, the existing regulation imposes rules for an analog world on a digital one. One effect of the fundamental shift in transmission technologies is a decline in the significance of telephone numbers to route calls. This decline is expected to accelerate as existing network technologies are replaced by next generation network—or IP-based— technology in both fixed and mobile networks. The telephony choices available to users have also changed significantly over the last 20 years. Use of digital mobile services has grown strongly and VoIP services are being adopted more broadly. While the number of mobile services in Australia 3 4 continues to grow (from 23.4 million in 2009 to 25.99 million in 2010 ), fixed services (which use geographic numbers) are in a slow decline in number (from 10.67 million in 5 2009 to 10.59 million in 2010). . However, a majority (77 per cent) of Australians 6 continue to have both a mobile and a home phone in their household. The ACMA‘s research indicates that consumer attitudes to these services have also changed. Today, the home phone is not as important to most people—mobile phones are now regarded as the main communication service for nearly half of all Australians 7 (47 per cent compared to 34 per cent for landlines). Changes in the available retail packages and bundles have also been significant. In 2010, two out of five Australians had a plan, cap or deal for their home phone, while 8 more than half of Australians (55 per cent) bundled two or more services together. A key effect of these changes, together with changes in consumer expectations and behaviour, appears to be decreasing consumer visibility of, and sensitivity to, the price and location information embedded in telephone numbers. A substantial proportion of 9 Australians (34 per cent) now no longer pays attention to individual landline call costs. Younger Australians (18–24 years) are less likely to know whether a local call from a landline is timed (50 per cent compared with 73 per cent for the rest of the 10 population). Collectively, these pressures reflect a fundamental shift in the environment within which numbers are used to provide communications services. It is in the interests of end users and service providers that the regulatory arrangements supporting the provision of communications services do not pose an unnecessary impediment to ongoing change and innovation. 2 A packetised transmission technology breaks up a piece of communication into small individual packets of data and sends them using the most efficient route at the time of transmission. This means that the various packets of communication may travel over many different routes before being reassembled. Unlike circuit- switched calls, packet-switched calls do not require a dedicated circuit and therefore use network resources much more efficiently. 3 ACMA, Communications report 2009–10, p. 34. 4 A service may relate to multiple phones. 5 ACMA, Communications report 2009–10, p. 30. 6 ACMA, Implications of research into consumer issues, p. 14, footnote 12. 7 ibid, p. 14, footnote 11. 8 ibid, p. 21, footnote 29. 9 ibid, p. 23, footnote 32 10 ACMA, Community research into consumer behaviours and attitudes towards telecommunications numbering and associated issues, p. 54. 8 | acma
1.3 Assumptions In developing future directions for telephone numbering, the ACMA has relied on a set of underlying assumptions. The ACMA‘s first consultation paper issued as part of the numbering work program—Structure of Australia’s telephone numbering plan—set out the key assumptions that would be used to guide the work program and to provide 11 some indication of the scale and scope of anticipated changes. In summary, these assumptions were: > the ongoing need for numbers—that there is likely to be a continuing role for telephone numbers for the foreseeable future > changes to numbers—the ACMA does not anticipate a need to increase the overall supply of numbers by increasing the length or otherwise changing numbers at any time in the foreseeable future > internet names and addresses, and application-specific identifiers—the transition to alternative identifiers in the long term was outside the scope of this work program. These identifiers are expected to complement rather than replace telephone numbers in the short to medium term and so will not have a material effect on the numbering arrangements during this time. The ACMA will continue to observe this evolution and evaluate any need for intervention as required. > globalisation of communication—the need for international collaboration and coordination of numbering, naming and addressing schemes will become increasingly important in managing the limitations of national jurisdictions, and achieving policy goals of security, safety, competition and consumer protection > no changes are anticipated to: > the government‘s broad communication policy goals of consumer protection, competition, security and safety including the untimed local call arrangements > emergency numbers or arrangements for the use of private numbers > the role of the ACMA and Australian Competition and Consumer Commission (ACCC) in regulating the telecommunications industry. 11 See pp 16–19 of Structure of Australia’s telephone numbering plan. acma | 9
2. How telephone numbers are specified Future directions 1 Rationalise number ranges over which like services are provided (where they are currently separated only because of technical characteristics of service delivery) to allow for the broad- based use of numbers and improve technical neutrality in the structure of number ranges. 2 Remove redundant number ranges and return unused numbers to the pool for reallocation to improve efficiency in the use of numbers. 3 To the extent that numbers continue to be used to provide price signals—these should be clear and consistent. The ACMA‘s first consultation paper, Structure of Australia’s telephone numbering plan, identified that changes in both network and device technology and consumer behaviour are blurring the boundaries between the general purpose services types, for providers and consumers. It also identified that, in some cases, the technological descriptions and distinctions included in the service descriptions and their rules for use may be: > restricting the flexible use of numbers > preventing efficient use of the number resource by industry > confusing for consumers and not meeting their service or information needs. The ACMA considers that numbering arrangements should minimise the use of technology descriptions and distinctions in the specification of numbers and the rules for their use to the greatest extent possible—as they restrict both the flexible and efficient use of numbers. This section examines a migration path for the current specification of more than 40 service types in the Numbering Plan to a technology-neutral plan with as few as four service types. It looks at specific areas within each service type where technology descriptions and distinctions and rules are restricting the flexible use of numbers by industry and consumers. This section has been divided into the following parts: > general purpose numbers—those numbers most commonly used by residential and retail consumers including geographic, mobile, satellite and location independent communication service (LICS) numbers > business and information numbers—includes freephone, local rate and premium numbers, and directory assistance and information services provided on shared numbers > limited use numbers > access codes. The following subsections describe changes to individual number ranges in some detail. These changes recognise the continued role that numbers play in providing information to consumers about the distinctions between the costs of calls. This underlying observation will guide change over the foreseeable future, but it is an observation that should itself be tested in five years. 10 | acma
Figure 3 How numbers are specified 2.1 General purpose numbers General purpose numbers are the telephone numbers most commonly used for residential and retail services. They include geographic, mobile, satellite and location independent communication service (LICS) numbers. Historically, general purpose numbers were specified by technology type because they were provided using different network technology. The Numbering Plan provided each network technology with a separate number range and specific rules about their use. acma | 11
2.1.1 Geographic numbers The particular form of geographic numbers in the Numbering Plan largely reflects, and locked in, the historical switching structure and hierarchy of Telecom Australia and its predecessors prior to 1991. It provides little flexibility. The untimed local call obligation 12 was also a significant driver of the structure of the Numbering Plan. This is because numbering was convenient for suppliers to use in meeting the obligation, and for consumers in understanding which calls were likely to be untimed local calls (charged at a fixed rate regardless of the length of the call). This is perhaps the largest single contributor to the size and complexity of the current Numbering Plan. However, numbering is not the only strategy available for CSPs to meet the untimed local call obligation. One alternative is for providers to geographically encode customer locations in their billing systems and use that information to ascertain whether or not an individual call is eligible. Another, possibly easier and already increasingly prevalent, method is to have a charging option that provides untimed calls for all local calls as part of overall packages (or ‗plans‘). Many VoIP providers already have 13 charging arrangements in which national calls (to geographic numbers) are untimed. The ACMA‘s consumer research suggests that these kinds of charging arrangements are already widely prevalent and popular. It may be that in the not too distant future they become the dominant method for the purchase of communications services, including fixed telephony. It is possible to envisage circumstances in which telephony call costs are entirely covered by a payment of a fixed fee or bundled with other products. Some respondents, including iiNet and Internode, felt that untimed local calls were a ‗legacy requirement‘ and should be removed. Vodafone Hutchinson Australia (VHA) felt a ‗simpler charge model could apply to all calls between geographic numbers‘ and could provide more certainty ‗especially (so) in an NBN environment‘. However, Skype noted that some countries (including France) have successfully implemented wholesale-level obligations, which Skype suggested has delivered results superior to direct legal or regulatory intervention at the retail level. Current arrangements limit the changes that can be made to geographic numbers and may affect how CSPs choose to offer retail service packages on the NBN. Under these circumstances, the ACMA questions whether the Numbering Plan is the best way to support the untimed local call obligation in the medium term. The provision of an untimed local call option by CSPs is a requirement under the Telecommunications (Consumer Protection and Service Standards) Act 1999 (TCPSS Act). 12 Part 4 of the Telecommunications (Consumer Protection and Service Standards) Act 1999 requires CSPs to offer customers using a standard telephone service (other than a mobile or satellite service) the option of an untimed charge for any call between two points for which, prior to 1997, the call would have been charged at an untimed rate. 13 For example, Internode‘s standard call rate for local and national calls to a fixed line anywhere in Australia is 18c per call untimed. 12 | acma
Additionally, although the numbering arrangements for geographic numbers do not specifically restrict the technology with which services can be provided, the current 14 arrangements have placed restrictions on the flexible use of the numbers. For example, the location rules mean that Australians are mostly unable to take their home telephone number with them when they move house, despite three in five (61 per 15 cent) indicating that they would like to do so. Working within the parameters of the legislative obligations set out under the TCPSS Act, Structure of Australia’s telephone numbering plan explored what, if any, changes could be made to increase the flexibility and efficiency of geographic numbers. The paper: > identified that removing sector boundaries in capital cities could improve efficiency without impacting a CSP‘s ability to meet its obligations under the TCPSS Act and 16 asked if there were any disadvantages to this option 17 > asked what information conveyed by geographic numbers is of value > asked when geographic numbers could be converted to flexible general purpose numbers and what strategy should be used to for transition 18 > asked what would be required to guarantee transparency of call costs. Feedback > Removal of sector boundaries was broadly supported except by the market research industry, which uses this information as one of the many factors in sample selection. > Some respondents found location information associated with telephone numbers important for charging and emergency services. However, newer entrants no longer used location for charging, and instead provided national calling. > The Communications Law Centre noted that in the long term: … the geographic significance of such numbers will be unimportant. The reasons for the diminution of geographic significance are related to separated network and service provision, as well as customers‘ nomadicity. > Symbio Networks noted that: … in the not too distant future, all general purpose numbers including landlines as well as mobiles will not be location dependent at all. By then geographic numbers will be pretty meaningless and consumers will not associate a general purpose number with a fixed location. The distinction in the Numbering Plan related to nomadicity by then will not be relevant in the context of general purpose numbers. > Most respondents noted that there would be a variety of benefits to customers in allowing location portability. Some noted that there would be some disadvantages, mostly the facilitation of charging for untimed local calls, but went on to say that these issues may become less problematic in an NBN environment. 14 Section 3.4 of the Numbering Plan provides that geographic numbers must be used by local services, and the most common use for them is by traditional fixed-network voice services, such as a home phone. However, geographic numbers may also be used for non-traditional services that are an exact or close substitute for fixed-network voice services (such as some two-way VoIP services) and for some services that are not a close substitute (such as one-way VoIP services and non-voice calls such as fax calls and dial-up internet). Some of these non-traditional services are able to be nomadic on an occasional or regular basis. Part 5 of Schedule 7 provides guidance on when geographic numbers can be used by nomadic services. 15 ACMA, Community research into consumer behaviours and attitudes towards telecommunications numbering and associated issues, p. 68. 16 ACMA, Structure of Australia’s telephone numbering plan, See p 32 Question 6 17 See p 30 Question 4 Numbering: Structure of Australia’s telephone numbering plan. 18 See pp 33 & 37 Questions 7, 8 & 11 Numbering: Structure of Australia’s telephone numbering plan. acma | 13
> Some respondents, including Internode, indicated that geographic numbers could be converted to flexible numbers now. Others, including Telstra, indicated that this conversion could not occur until price differentiation is removed and could not foresee a time when this would occur. > If geographic numbers were converted to flexible general purpose numbers, respondents saw some issues with the provision of the untimed local call obligation. Some providers (iiNet and Internode) suggested that this could be addressed by expanding the eligible area of untimed local calls to the whole country. > Optus noted that: Maintaining these mandatory obligations for longer than is needed along with the associated numbering arrangements may impose costs of industry and block benefits to consumers. In particular the mandated obligation to supply untimed local calls should be dealt with as soon as possible, as this may push unnecessary costs and complexity into the future. In addition to the feedback from submitters, the ACMA‘s research indicated that there is general confusion about the cost of landline and mobile calls because of the prevalence of a wide and varied range of packages for both these services. Focus group research suggests that there is some confusion about what constitutes a ‗local call‘. Many participants thought that it was in their local area but were unable to define what the borders for this area might be. Discussion In addition to enabling CSPs to meet their obligations under the TCPSS Act, law enforcement and emergency agencies have advised the ACMA that geographic numbers currently play an important role as a proxy for location information. While they note that this is not the only source of location information available to them today, and that alternative sources will be developed in the future, they anticipate that they will continue to use this information until alternative sources mature and/or the location information embedded in them becomes unreliable. When this occurs, the ACMA considers that it will be appropriate to consider whether the location restrictions that apply to geographic numbers are required, as they restrict the flexible and efficient use of the numbers. Some incremental changes have already been made to the arrangements for geographic numbers that increase the flexibility with which they can be used. This means that in certain circumstance, services using these numbers are permitted to be occasionally nomadic and to be used in an alternative location; however, further 19 flexibility could be provided. For example, the restriction that geographic numbers must be used within certain sectors of the metropolitan area could be removed without implications for the untimed local call obligation. The removal of sector boundaries in metropolitan areas was well supported by industry as it will increase the flexibility and efficiency of its number use. While the argument by the market research industry that such a change would increase sampling costs is noted, other survey methodologies and sampling mechanisms are available to achieve similar outcomes, and this argument was not considered a compelling reason to continue to restrict the more flexible use of geographic numbers. Several providers noted that location information is unlikely to be needed for charging or routing in the long term (indeed some of them do not use it now) and removing it 19 Following amendment to the Numbering Plan in 2011 to insert sections 4A and 4B, geographic numbers may be used in an alternative location if a customer has been informed of how call charges will be affected and their ability to port the number to another provider. 14 | acma
could achieve additional efficiency and flexibility. However, further relaxations will not be considered until alternative sources of location information are established. Actions # What How When 1 Remove sector boundaries Amend Schedule 3 of the 2011–12 from geographic numbers Numbering Plan 2 Remove the requirement to Amend Numbering Plan When this information is no use geographic numbers in a sections 3.4, 3.5, 3.7 and longer required to meet specific location within a Schedule 2 obligations under the TCPSS charging district Act 3 Remove the requirement that Amend Numbering Plan When alternative mechanisms geographic numbers must be sections 3.4, 3.5, 3.7 and are available to allow law used in a specific, remove Schedule 2 enforcement and emergency predominantly fixed location agencies access to location information 2.1.2 Mobile numbers Digital mobile service numbers were the only service type identified as having the potential to exhaust its capacity in the short to medium term. Further modelling undertaken in 2011 has identified that if CSPs continue to apply for mobile numbers at the rate experienced over the 18 months to mid 2011, then the current supply of mobile numbers could be exhausted by 2017, 10 years earlier than previously forecast. The ACMA is exploring options to expand the capacity of mobile numbers. The numbering work program also identified that future changes to both network and device technology and to retail packages may provide the opportunity to convert geographic, mobile, LICS and satellite service numbers into one flexible general purpose range. It also asked: > if there were any other reasons for retaining a separate range for mobile numbers 20 other than the cost of calls > when mobile numbers could be converted to flexible general purpose numbers and 21 what strategy should be used for transition. Feedback > All respondents agreed that demand was likely to remain high in the future and alternative number ranges should be explored. > The cost of calls was the only reason identified for maintaining a separate range; however, the Communications Law Centre noted that ‗the economic reason for having separate mobile numbers will eventually be eliminated‘. > Some respondents, including Symbio, indicated that mobile numbers could be converted to flexible numbers when price differentiation is removed; others, including Telstra, thought there was no case for change. Discussion Historically, technology descriptions and distinctions in service descriptions informed CSPs about the kinds of technology that could be used to provide services. Providers use this information for routing calls and over time have also used it for both retail and 20 ACMA, Structure of Australia’s telephone numbering plan, p. 37, question 10. 21 ibid, question 11. acma | 15
wholesale charging. The ACMA‘s research found that mobiles are emerging as the main communications service of adult Australians, with 47 per cent using mobiles (either mobile voice or text) as their main form of communication, while 33 per cent reporting that their main form of communication is their landline. Those in the younger age group (18–24 years) are most likely to have only a mobile phone (32 per cent 22 compared with 13 per cent overall). Some of the technology descriptions and distinctions may be restricting innovation and a more flexible use of those numbers by services unconstrained by historical assumptions about the technology. The ACMA considers that unless there are compelling reasons to maintain them, technology descriptions and distinctions should be removed to encourage innovation and allow the flexible use of numbers. Removing the technology descriptions and distinctions for mobile services, the distinctions between mobile and satellite, and between mobile and LICS, could provide additional capacity and flexibility and may not significantly impede price transparency 23 for consumers. This approach would maintain the distinction between those services that are primarily fixed (or are nomadic on an occasional basis only), which would continue to use geographic numbers, and those that are not fixed—those that could be regularly nomadic or could be moved continuously without service interruption and independent 24 of the technology used to provide them. There are several ways to implement this approach, including: > removing the technical limitations on the use of mobile numbers by these services > amending the service definitions for satellite and LICS numbers, allowing both of those ranges to be used by mobile services (see sections 2.1.3 and 2.1.4). In considering this approach, the ACMA will need to have regard for the ACCC‘s directions on portability—which apply to digital mobile services but not to satellite services or LICS—and to the implications of any changes on the needs of law enforcement or emergency service organisations. 22 ACMA, Implications of research into consumer issues, p. 12. 23 Optus offers satellite services using digital mobile numbers. 24 When alternative mechanisms have been developed that give law enforcement and emergency agencies access to location information, for all services, it may be possible to remove this distinction (if doing so would benefit CSPs or consumers). 16 | acma
Actions # What How When 4 Remove technical limitations Amend the definition of 2013 that restrict services using ‗digital mobile service‘ in the other technologies from Numbering Plan to remove using mobile numbers reference to the network technology used to provide the service 5 Allow satellite services to Amend Schedule 4 to allow 2013 use mobile numbers satellite services to use digital mobile numbers 6 Allow LICS to use mobile Amend Schedule 4 to allow When an alternative numbers non-fixed services, including mechanism has been LICS, to use digital mobile established for providing numbers location information to ESOs for non-fixed services other than mobile 2.1.3 Location independent communications service (LICS) numbers It is clear that the introduction of the number range for LICS has not been a success. Structure of Australia’s telephone numbering plan asked: > What were the reasons for the limited usage of LICS? > To what extent is it relevant to retain a distinction in the numbering plan for the nomadic nature of a service? > If LICS are retained, to what extent will the ACMA need to address the reasons for 25 their limited usage? Feedback > The Communications Law Centre noted that ‗in the long term, local service (based on PSTN) will be substituted by location independent communication services (related to Internet-based services and NGNs)‘, and that to provide LICS with geographic numbers (without geographic significance) would be ‗in accordance with the industry trend to universal NGN; also is more useful for customers as well as less complex for CSPs‘. > The majority of respondents thought that the LICS number range should be scrapped due to lack of demand. Telstra indicated that it ‗has no formal requests to negotiate access for 0550 numbers and Telstra has no plans to use them‘. > The reason for the limited use was because of the lack of regulatory intervention to mandate an originating access price. AAPT noted that: … location independent numbers have not been a success due to the unavailability of a suitable charging model that could compete with the untimed local calls regime available from geographic numbers. > Symbio Networks argued that: … the reasons are that carriage service providers are reluctant to condition their respective networks to accept, analyse and route location independent numbers due to the huge costs involved and limited benefits. > Skype noted that ‗the marginal use of LICS numbers in Australia comes as no surprise; their failure being inevitable in great part due to the practices of (incumbent) network operators‘, and argued that ‗should ACMA persist with a 25 ACMA, Structure of Australia’s telephone numbering plan, p. 40, questions 12–14. acma | 17
dedicated LICS range, it should not tolerate operator‘s abusive practices in this regard‘. > Law enforcement and emergency agencies maintained that a separate range for nomadic services continued to be important because of public safety. Discussion Specification of a range of numbers for LICS is one in a series of attempts to provide a number range for innovative services on general purpose numbers. As outlined in 2.1.2, the ACMA considers that unless there are compelling reasons to maintain them, technology descriptions and distinctions should be removed to encourage innovation and allow the flexible use of numbers. However, the ACMA recognises that there may be some benefits in maintaining a range of numbers for such service innovation. Notwithstanding the implementation problems identified with LICS numbers, it is not possible to remove them unless the rules for either local or mobile services, or both, are amended. This is because the Numbering Plan restricts the use of geographic 26 numbers to those that are fixed or are only nomadic services on an occasional basis. Although recent changes to the Numbering Plan mean that CSPs have more flexibility to use local service numbers in alternative locations as long as customers have been informed about the impact, the recent amendments do not permit the use of local service numbers by services that are nomadic on a regular basis. Any further changes also need to have regard to the obligations set out in Part 4 of the TCPSS Act. The definition of digital mobile numbers contained in the Numbering Plan similarly restricts their use to services that are supplied using a network that uses digital modulation technology. This means that while a VoIP service on a laptop connected using a mobile data connection could arguably use a digital mobile number, the same VoIP service would not be permitted to use a digital mobile number when connected to a fixed IP connection. However, if the mobile service definition was amended to allow other non-fixed services to use mobile numbers without reference to the technology type used in service provision, the description of LICS numbers could be removed from the Numbering Plan. Alternatively, given that current use trends show that digital mobile numbers may exhaust current capacity in the next six years, it may be more efficient to amend the number range associated with LICS to allow its use by other non-fixed services, including mobile and satellite services. In this way, the number range could be more broadly available for innovative services that do not fit neatly within the existing geographic or mobile number ranges. As with the changes to mobile numbers the ACMA will need to consider the implications for portability and emergency services, prior to implementation of either mechanism. 26 Part 5 of Schedule 7 provides the guidelines for the use of geographic and location independent services. 18 | acma
Action # What How When 7 Remove technical limitations Amend Schedule 4 to explicitly When an alternative restricting other non-fixed allow other services, such as mechanism has been services, including mobile and digital mobile and satellite established for providing satellite services, from using services, to use the number location information to ESOs LICS numbers range associated with LICS for non-fixed services other than mobile 2.1.4 Satellite numbers 27 Structure of Australia’s telephone numbering plan asked whether it was necessary to retain a separate number range for satellite services, given that many of the estimated 28 16,000 satellite services in Australia do not use the 014 satellite range. Instead, these services choose to use either Australian mobile (04) numbers, or global satellite numbers on the +881 global mobile satellite or the +882 international networks ranges. Feedback > The cost of calls was seen as the main justification for maintaining a separate number range for satellite services. For example, AAPT noted that ‗the only benefit of having a separate number range is to indicate there are higher charges for this service‘, while Telstra noted that the ‗price information is valuable to callers because the services tend to be expensive‘. > Optus noted that they ‗continue to offer satellite services and continue to require this number range. Calls to and from mobile satellite services are charged at distinct rates and separate numbering is required‘. > Australian Private Networks, which retails satellite phones using both satellite numbers (where the caller pays for the call) and mobile numbers (where the satellite customer pays to receive the call), noted that ‗to date all of our customers have chosen 0145 (satellite) numbers and the feedback we get is they do not want to pay to receive calls‘‘ They go on to argue that ‗operators would be forced to impose charges to receive calls if the satellite number range was removed‘. > In contrast, Internode argued that: … the NBN is about to make this (a separate number range for satellite services) insane by providing voice services via satellite where ‗local‘ and ‗long distance‘ will be a fake concept supported for political purposes. > VHA stated ‗that there is no need for a spare number range for satellite services as mobile numbers are already being used for satellite services‘. Discussion As outlined in sections 2.1.2 and 2.1.3, the ACMA considers that unless there are compelling reasons to maintain them, technology descriptions and distinctions should removed to encourage innovation and allow the flexible use of numbers. The ACMA acknowledges that increasing flexibility may reduce the call cost information embedded in the existing satellite number range. On balance, the ACMA‘s view is that, in this case, the benefits of increased flexibility outweigh the reduction in call cost information. The cost of calls was the main reason cited by submitters for maintaining a separate number range. However, there is evidence that a separate number range is not 27 ACMA, Structure of Australia’s telephone numbering plan, p. 42, question 15 28 Paul Budde Communication, Australia – Mobile Satellite Service, June 2010. acma | 19
required for satellite services as some satellite providers are already choosing to offer these services on mobile numbers. There is no evidence to indicate that this trend would not continue into the future and, given the small number of services in the Australian market, little evidence of consumer detriment from this practice. However, if the ACMA withdraws the 320,000 satellite numbers allocated to providers, services to customers who use these numbers will potentially be disrupted. In contrast, removing the technical barriers that restrict mobile and nomadic services such as LICS from using these numbers would expand the number ranges available for these numbers and reduce technology restrictions that no longer reflect industry practice. Allowing other services to use the ranges associated with satellite numbers would also make an additional 4.7 million numbers available for those services. As with the changes to mobile and LICS numbers, the ACMA will need to consider the implications of this change for portability and emergency services. Action # What How When 8 Remove technical Amend Schedule 4 to 2013 limitations restricting explicitly allow digital mobile services from mobile services to use the using satellite numbers number range associated with satellite services 9 Remove technical Amend Schedule 4 to When an alternative mechanism has limitations restricting LICS explicitly allow LICS to been established for providing location services from using use the number range information to ESOs for non-fixed satellite numbers associated with satellite services other than mobile services 2.2 Business and information numbers In addition to the general purpose numbers discussed in 2.1, the Numbering Plan provides several service types for use by entities who wish to subsidise the cost of calling for their customers and clients, or to allow them to charge for access to directory, information, entertainment or other services. This section is divided into three parts: > freephone and local rate numbers (13/1300 and 1800) > premium numbers (19) > directory assistance and information services provided on shared numbers (12). 2.2.1 Freephone and local rate numbers On 11 October 2011, the ACMA published a consultation paper, Numbering: Calls to freephone and local rate numbers—The way forward, which indicates that it plans to take action so that calls from fixed and mobile phones to freephone and local rate numbers are treated in a similar manner. The ACMA‘s view is that the current arrangements require change. Three key drivers of change have been identified: > the desirability of reflecting changes in consumer usage of telecommunications services > the need for the arrangements to reflect the intent of the legislative scheme including the objects of the Numbering Plan > the desirability of increasing price transparency for consumers. 20 | acma
The ACMA is consulting on a proposal to amend the Numbering Plan to achieve two key outcomes: > that calls from mobile phones to freephone numbers are free of charge to the calling party > that calls from mobile phones to local rate numbers are limited to the amount that a consumer would expect to pay for a local call made from a fixed phone. The ACMA also welcomes measures by industry that avoids the need for regulatory intervention to achieve these two outcomes. The ACMA does not place any limit on the mechanisms that interested parties may propose to meet these outcomes, but is interested in how these may be achieved within the 12-month time frame identified in the consultation paper. Readers interested in this issue are encouraged to review and respond to that paper. 2.2.2 Premium numbers Premium rate services allow customers to pay for information, entertainment and other services using their phone bill. The current arrangements enable these services to be provided on six-, eight- and 10-digit number ranges with a 19 prefix, including a limited pool of these numbers for use with age-restricted services (numbers beginning with 29 the prefixes 1901, 195 and 196). At various times, premium rate services have been the subject of high levels of consumer complaints—most commonly about the receipt of unsolicited services and high charges. However, more recently, many of the services previously provided on premium numbers, such as competitions and ringtones, have moved to alternative online mechanisms. ACMA research demonstrated that despite: … some confusion about exactly what services are likely to be offered on 19/1900 numbers, consumers can generally identify that these calls are not free and are likely 30 to cost more than a local call from both landline and mobile phones. Structure of Australia’s telephone numbering plan asked: > Is the need for premium rate numbers likely to continue into the future? If so, for how long? > What are the limits to facilitating price transparency via the Numbering Plan? What are the possible ways to achieve price transparency of premium rate services and 31 other communications services (apart from numbers)? Feedback > The majority of respondents, including AAPT, iiNet, Skype, Optus and Telstra, note that although demand is declining, a separate range of numbers will be needed for premium services for the foreseeable future. > The majority of respondents thought that it was no longer relevant to distinguish the means by which a service was accessed—however, iiNet noted that this distinction was still useful to them. > The distinction for adult services was broadly supported. > There was a range of views on price transparency—some felt the numbers were no longer relevant to indicate price; others that there remained some benefit to 29 As required by Section 158H of the TCPSS Act 1999. 30 ACMA, Implications of research into consumer issues, p. 32. 31 ACMA, Structure of Australia’s telephone numbering plan See p. 50, questions 20–22. acma | 21
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