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TELECOMMUNICATIONS CARRIER INDUSTRY DEVELOPMENT PLANS
PROGRESS REPORT: 1998-99
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Contact details for further information
All carriers are required by the Telecommunications Act 1997 to submit a public summary of
their industry development annual reports. These are available at the Department of
Communications, Information Technology and the Arts website at http://www.dcita.gov.au.
For further information regarding telecommunications carrier industry development activities,
please contact:
Deborah Chen
Assistant Manager
Communications Industry Development
Department of Communications, Information Technology and the Arts
Phone: 02 6271 1761
Fax: 02 6271 1779
email: deborah.chen@dcita.gov.au
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FOREWORD BY THE MINISTER
The Government’s initiative in opening the telecommunications carrier market to full
competition from 1 July 1997 is proving successful both in meeting the long term interests of
end users and in promoting the efficiency and international competitiveness of the Australian
telecommunications industry.
The carrier Industry Development Plan (IDP) arrangements contained in the
Telecommunications Act 1997 aim to maximise the benefits for industries that supply products
and services to the carriers. Competition in the carrier market is proving to be a key driver of
the growth and innovation that is needed to underpin a globally competitive Australian
telecommunications industry.
As part of the IDP process, licensed telecommunications carriers are required to advise me
annually of the industry development outcomes resulting from their activities. This report draws
upon that advice and other information to summarise the development of the Australian
telecommunications industry during 1998-99.
I am pleased to report that there continues to be very substantial compliance by the carriers with
their IDPs and that carrier activity is providing opportunities for Australian companies supplying
hardware, software and services to the industry. The ongoing growth in the number of carriers,
and in the scale of activity of individual carriers, suggests that the opportunities for industry will
continue to expand in future years.
RICHARD ALSTON
Minister for Communications,
Information Technology and the Arts
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1998-99 HIGHLIGHTS
The Australian Communications Authority issued a further 8 telecommunications carrier
licences during the year. At 30 June 1999, a total of 29 licences were held by 26
organisations.
Each of those 26 organisations has an approved Industry Development Plan (IDP). The
duration of the carrier IDPs range between one and five years for the various carriers.
The annual industry development reports submitted by the carriers show that the carriers have
continued to make very substantial progress toward meeting the objectives in their IDPs.
The licensed carriers had an estimated turnover of $24.0 billion dollars (including intercarrier
payments) during 1998-99.
The carriers undertook $6.0 billion of capital investment during 1998-99, bringing the total
since IDPs commenced on 1 July 1997 to $11.1 billion.
The carriers continued to build strategic commercial relationships with companies in the
network equipment, cable and software industries, terminal equipment industry,
communications engineering services sector, multimedia content providers, the civil
construction industry, research organisations and other communications service providers.
The carriers undertook more than $430 million of research and development during 1998-99,
bringing the total over the past two years to $790 million.
The activities of the carriers resulted in exports of $200 million during the year. These
exports were mostly undertaken by the carriers' strategic partners as a result of their
relationships with the carriers. The total value of exports since 1 July 1997 is $830 million.
Employment by the carriers at June 1999 totalled 64 100.
Training expenditure by the carriers in 1998-99 amounted to almost $210 million, giving a
total over the two years of $435 million.
The carriers progressed a range of activities aimed at providing improved access and services
for people with disabilities.
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INTRODUCTION
The Government introduced full competition to the telecommunications carrier market with the
passage of the Telecommunications Act 1997. Prior to 1 July 1997, Telstra, Optus and Vodafone
were the only organisations permitted to operate as telecommunications carriers in Australia.
In order to maximise the industry development benefits flowing from the activities of all carriers,
the legislation requires that each operator must have an Industry Development Plan (IDP)
approved by the Minister for Communications, Information Technology and the Arts before a
carrier licence can be issued. Prior to November 1998, IDPs were approved by the then Minister
for Industry, Science and Tourism. Each carrier must also make a summary of their plan
available to the public.
The principal goal of the telecommunications carrier IDP arrangements is to assist development
of the Australian telecommunications industry by encouraging carriers to undertake activities
which contribute to the growth of the industry, while recognising that the carriers' actions must
remain fundamentally strategic and commercial in nature. Accordingly, each Industry
Development Plan must provide relevant particulars of a carrier's:
strategic commercial relationships with Australian and multinational companies;
activities in relation to research and development;
export development plans;
arrangements aimed at encouraging employment in industries involved in the manufacture,
development or supply of facilities; and
activities relating to the supply of equipment for people with disabilities.
The legislation requires that a carrier must have a current IDP at all times and that an IDP must
run for at least 12 months. The duration of the individual carrier IDPs range between one and
five years for the various carriers.
The legislation also requires that each carrier must provide an annual report to the Minister
describing progress made by the carrier in implementing the plan during that year, and must
make a summary of that report available to the public. By 30 June 1999, a total of 29 carrier
licences had been issued by the Australian Communications Authority. As Cable & Wireless
Optus held three licences, and Telstra held two licences, annual reports were submitted by 26
organisations.
Information in this report relating to licensed carriers has been drawn from the carriers' annual
progress reports on the implementation of their IDPs. Information in the report relating to other
sectors of the telecommunications industry has been obtained from the 1999 Communications
Industry Pulse Survey.
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OVERVIEW OF THE TELECOMMUNICATIONS INDUSTRY
The Australian telecommunications industry earns revenue of some $34 billion per annum. The
industry is a key source of high value added products and provides a significant contribution to
Australia’s economic wealth.
Telecommunications carriers, and in particular Telstra and Cable &Wireless Optus, are the key
drivers of demand across the industry as a whole. New and emerging carriers are however
becoming increasingly significant, having foreshadowed capital expenditure in their IDPs
totalling some $2 billion. Moreover, the investment intentions of the newer carriers are
expanding as they become more established in the market, which should lead to increased
opportunities for companies supplying hardware, software and services to the industry.
Telecommunications carriers and service providers
Telecommunications services are provided by a range of operators:
licensed telecommunications carriers who install their own switching and transmission
infrastructure;
service providers who operate their own telecommunications switches; and
switchless service providers who aggregate traffic to obtain discounted rates from carriers.
The composition of the Australian telecommunications carrier market is changing rapidly as
companies seek to take advantage of the fact that the market has been opened to full competition.
Of the 26 organisations holding carrier licences at 30 June 1999, 20 had commenced trading with
the remaining carriers working to install their infrastructure. Estimated turnover for 1998-99
was:
licensed carriers: $24.0 billion (including intercarrier payments); and
service providers: $2.4 billion.
Telstra holds the majority of the telecommunications services market, but the company is facing
increased competition as the other carriers and service providers continue to build their markets.
Service providers represent some 10 per cent of the total market for telecommunications
services.
Capital investment in the carrier and service provider sectors was:
licensed carriers: $6.0 billion in 1998-99; and
service providers: $0.1 billion estimated for calendar year 1999.
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Telecommunications equipment, software and engineering services
The telecommunications hardware industry is a cornerstone of Australia’s electronics and cable
industries. The software industry assists in integrating the hardware and provides the
functionality for the operation of the system, eg customer billing and on-line services. The
engineering services sector installs equipment and provides network systems design, especially
for wireless networks. Table 1 outlines the segments of the telecommunications industry.
Table 1: Telecommunications industry sectors
Network equipment, cable and software Infrastructure and supporting software for building
both public and private networks, including switching,
multiplexing, cable and transmission equipment.
Terminal equipment End user terminal devices for voice, data, text, and
video.
Communications engineering services Consultancy and design, project management,
facilities management, equipment installation, cabling,
maintenance and training.
Total sales in these sectors during 1998-99 were:
network equipment, cable and software: $4.6 billion;
terminal equipment: $2.1 billion; and
communications engineering services: $1.0 billion.
The 1999 Communications Industry Pulse Survey reported that the anticipated calendar year
1999 growth in sales for the three sectors was 12 per cent, 16 per cent and 42 per cent
respectively. For each sector, this reflected stronger revenue growth compared with the previous
year.
Despite the stronger rate of growth in revenue, all three sectors reported modest capital
expenditure intentions. The anticipated capital investment for 1999 was:
network equipment, cable and software: $200 million, up 4 per cent on the previous year;
terminal equipment: $35 million, down 11 per cent; and
communications engineering services: $30 million, up 2 per cent.
The 1999 Communications Industry Pulse Survey reported the following reduction in research
and development expenditure for 1999:
network equipment, cable and software: $410 million, down 12 per cent;
terminal equipment: $11 million, down 18 per cent; and
communications engineering services: $77 million, down 15 per cent.
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Feedback from companies that responded to the Pulse Survey suggested that the reported decline
in research and development may reflect changes in the organisation and nature of the activity
rather than any significant reduction in total research and development effort. This issue will be
examined further in the next Pulse Survey.
Telstra remains one of Australia’s largest research and development organisations, with R&D
increasing from $244 million in 1997-98 to $337 million in 1998-99. This includes a significant
amount of research conducted by companies in the network equipment, cable and software sector
on behalf of Telstra.
The communications industry anticipated strong export sales for 1999:
network equipment, cable and software: $1,800 million, up 25 per cent;
terminal equipment: $260 million, down 16 per cent; and
communications engineering services: $300 million, down 5 per cent.
Countries comprising the Association of South East Asian Nations (ASEAN) are the major
region for telecommunications exports (27 per cent of the total). The next most significant
regions are North America at 18 per cent and “China, Hong Kong and Taiwan” at 13 per cent.
While the industry has had to contend with the impact of the Asian economic downturn in recent
years, the network equipment, cable and software industries are the driving force behind an
export industry worth well over $2 billion. On average, companies in the equipment, cable and
software sector derived over 35 per cent of their revenue from exports and anticipated strong
export growth in 1999.
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CARRIER INDUSTRY DEVELOPMENT ACTIVITIES: 1998-99
As required by the Telecommunications Act 1997, the 26 organisations with approved Industry
Development Plans during 1998-99 made undertakings in the areas of:
strategic commercial relationships with Australian and multinational companies;
research and development;
exports;
employment and training; and
the supply of equipment for people with disabilities.
The companies holding carrier licences at 30 June 1999 are listed in Attachment A.
This section summarises the progress made by the carriers in implementing their Industry
Development Plans during 1998-99 and includes case studies of specific initiatives that the
carriers have undertaken.
Strategic commercial relationships
Strategic commercial alliances benefit individual companies in many ways. Strategic alliances:
enable companies to draw together the expertise and resources needed to undertake larger
projects than would be possible for the companies individually;
facilitate technology transfer between companies;
provide a platform for smaller firms to demonstrate their capability; and
facilitate the promotion of Australian products in international markets.
The Industry Development Plan process seeks to promote strategic commercial relationships to
maximise the benefits for industry as a whole from the activities of telecommunications carriers.
To provide an understanding of each carrier’s links with the wider industry, carriers include in
their IDPs particulars such as the:
names of the companies with which they have alliances;
nature of the relationships;
services or products involved; and
global or annual value of the relationships.
Strategic alliances have been formed between carriers and a wide range of companies including
other telecommunications carriers and service providers, suppliers of information technology and
telecommunications equipment, companies that develop and supply software, civil construction
companies, cooperative research centres and individual Australian universities.
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In 1998-99, Telstra alone had trading accounts with more than 10,000 suppliers, of which some
95 firms received orders in excess of $10 million. Up to 36 per cent of Telstra's total spend in
1998-99 was placed directly with small-to-medium enterprises.
Case Study 1: AAPT Sat-Tel
AAPT Sat-Tel, a wholly owned subsidiary of AAPT, provides data and video, telephony, on-line
services and high speed Internet services via satellite to support such applications as virtual
private voice and data networks, wide area networking, file delivery, Internet trunking for ISPs,
distance learning and business television.
AAPT Sat-Tel also provides communications services to large numbers of dispersed rural and
remote sites using shared-hub VSAT technology. Two recent initiatives are noted below.
First, in December 1998, AAPT selected Adelaide as the site of its new international satellite
gateway. Local contractors were used in the implementation of the systems and five new full-
time positions were created.
The international satellite gateway offers large companies an alternative to terrestrial (or
wireline) communications. Satellite communication has proved to be more reliable, cost effective
and efficient where companies have many remote sites that need to be linked.
AAPT Sat-Tel, in an alliance with NEC Australia, has transformed its Adelaide earth station into
an international satellite gateway. The teleport provides services that encompass the carriage of
voice, data and video. The VSAT C-Band equipment allows up to 2 megabytes per second, 2-
way communications.
Second, AAPT has been involved with the Farmwide project. Farmwide is a non-profit company
wholly owned by the State/Territory members of the National Farmers' Federation.
Farmwide has received funding from the Regional Telecommunications Infrastructure Fund to
conduct two trials to evaluate Internet access in remote areas of Australia, using satellite
technology. AAPT Sat-Tel is working in close co-operation with Farmwide participants to
examine such issues as:
reliability of the technology and how it works with existing phone services;
the impact of satellite use on other Digital Radio Concentrator Service (DRCS) users;
the benefits of high speed Internet access;
the effectiveness of support and training procedures implemented;
the competitiveness of tariffs and charges;
the complexity of the installation and configuration processes; and
the ability of the technology to complement other telecommunications and information
technologies.
Two groups of two hundred participants each, Australia-wide, have been offered participation in
the evaluation of similar technological solutions from AAPT Sat-Tel using the Gilat Skysurfer
platform, and Telstra/Ericsson/Big Pond using the Hughes DirecPC platform.
Participants have been selected with preference given to those currently using Telstra's DRCS,
which supports basic telephone services, but which does not support data speeds in excess of
9.6kbit/s (or in some cases 2.4 kbit/s).
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Case Study 2: AMCOM
Amcom has completed a major project within 12 months in conjunction with the Health
Department of Western Australia (HDWA) to provide bandwidth to the five main teaching
hospitals in the Perth metropolitan area.
Those sites include Sir Charles Gairdner, King Edward Memorial and Princess Margaret
Hospitals in the Western Suburbs as well as Royal Perth Hospital in the CBD and Fremantle
Hospital.
The project involved the installation of 30 kilometres of pit and conduit infrastructure and the
installation, termination and testing of the associated optical fibre cable.
Apart from the obvious physical constraints in carrying out the project, Amcom was also
involved in coordinating with five separate councils and shires, as well as Main Roads Western
Australia and the relevant utilities that have services in the vicinity of Amcom’s proposed route.
The HDWA is an organisation that has a requirement for huge amounts of bandwidth to be
available between sites, and this is to cater for applications such as video for medical imaging as
well as traditional accounting and office based computing systems.
Previously HDWA were restricted to 34 Megabits per second via an ageing Microwave network
which they owned and operated internally. Amcom provided a tailored solution at an affordable
price, which has enabled HDWA to implement a 622 Megabit per second ATM network between
the five hospitals which can handle all of their computer and video applications as well as in the
near future catering for the telephone interconnection as well. As a result, HDWA now has a
truly world class network which not only caters for its current needs, but will also serve it well in
the future.
Amcom is proud of its achievements in relation to the project, and as outlined in its original
industry development plan the organisation has definitely provided tangible benefits to Western
Australia in the short time since it has been awarded a Carrier Licence.
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Case Study 3: Southern Cross Cable Ltd (SCCL)
SCCL’s major suppliers are Alcatel Submarine Networks (ASN) and Fujitsu Limited. ASN will
provide the cable for the entire Southern Cross network (approximately 28,500km) and ASN’s
Australian manufacturing plant in Botany Bay, NSW, will manufacture approximately 17,000km
of that cable (including 71km that will be laid within Australian jurisdiction). The award of this
contract led to a capacity expansion program at the Port Botany plant which included the
installation of two new stranding lines, a second insulation line and the transfer of the tube
technology to Port Botany. The expansion program is designed to more than double the capacity
of the plant and involved an investment of $25 million.
SCCLA’s Prime Contractor is responsible for the construction, operation and maintenance of the
SCCLA network. The Prime Contractor completed work to the value of $18.8 million during
1998/99 of which 99.2% was Australian. The major vendors used by the Prime Contractor to
undertake this work included Leighton Contractors, Trenchless Contracting, Cherrington
Australia, BICC Communications (now Corning Cables Australia), L.I. Prichard, Currie
Nominees, Trehy Ingold Neate, Colliers Jardine, QC Communications, Kinhill, Corpak
International, and ADC Telecommunications.
Case Study 4: MCI WorldCom
Sydney City Council (SCC) has approved a Development Application lodged by
MCI WorldCom for the deployment of fifteen kilometres of ducting and fibre optic cables across
the Sydney CBD. Wherever possible the work was done in conjunction with other council street
works to ensure minimisation of disruption to traffic and pedestrians. Work was undertaken by
both the council contractors and MCI WorldCom contractors. This was the first major
telecommunications infrastructure project undertaken by the SCC in many years so a complete
set of working procedures were required to be developed. At the same time the SCC was under
pressure to undertake a massive street refurbishment in advance of the Sydney Olympics.
As a result of this collaboration, MCI WorldCom has been able to extend its fibre optic network
around the Sydney CBD to service its customers. This development represents a major step
forward in the company’s commitment of capital and resources to Sydney and New South
Wales. The value of this project is A$12,000,000 and the project was due for completion by
December 1999.
SCC has positively contributed to the creation of a “smarter” city through its support of the
construction of competitive communications infrastructure.
MCI WorldCom will now be able to offer its high speed voice, data and Internet services to
customers “on-net” within Sydney’s CBD. This is particularly significant as Sydney’s CBD
encompasses a great many Australian and multi-national businesses, particularly in the banking
and finance sectors, who require greater access and choice to global data communication
services and facilities such as those MCI WorldCom supplies. This development will assist
many businesses to compete globally using the latest in telecommunication services as a key tool
in their competitive strategy and contributes to the realisation of the Governments positioning of
Sydney as a key financial services hub in the Asia Pacific region.
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Case Study 5: UeComm
Melbourne's Wesley College has chosen UeComm (UeC), a wholly owned subsidiary of
United Energy Limited, to supply wide area bandwidth services to enhance its voice and data
transfer capability.
UeC's "LightNet ATM" Asynchronous Transfer Mode service will provide data and voice
connectivity between Wesley College's three campuses at Prahran, Elsternwick and Glen
Waverley.
Wesley is the first educational institution to subscribe to the LightNet ATM service.
LightNet portfolio currently provides an extensive high bandwidth wide area network for the
banking, retail, health care, government, internet and IT sectors.
Wesley College says LightNet ATM will provide an enhanced IT system for students and
staff of the College. Wesley College intends to broaden the application of LightNet ATM for
multi media, video conferencing and internet services.
The demand for a cost effective delivery system over a resilient fibre optic network and the
need to deliver such an extensive network in the shortest possible time were two of the many
criteria Wesley College used when making the decision to award the contract to UeC.
The Ue Comm network offers synchronous digital hierarchy, asynchronous transfer mode
and dense wave division multiplexing services. With these technologies UeC supports a
diverse range of client applications including telemedicine, LAN-LAN connections, ESCON
traffic between mainframes and call centre traffic.
United Energy is a major Victorian based energy and related services provider. It was the
first privatised electricity company in Australia to be publicly listed and the first power
utility to establish a telecommunications carrier.
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Case Study 6: Telstra: Global Operations Centre
The $35 million Global Operations Centre took 12 months to construct and places Telstra at the
leading edge globally in network operations, and in a very strong position to manage high
growth in data traffic.
Showcasing Telstra’s technological capability and strengthening its foothold as a world leader in
telecommunications, Telstra’s new Global Operations Centre gives a borderless view of
customer traffic and enables the company to service its customers regardless of their
geographical location.
Telstra launched its Global Operations Centre in 1999, which brings together for the first time
the central management of Telstra’s national, international and offshore networks. One of the
world’s largest digital videowalls -a centrepiece of the Centre- will give staff a clear view of
Telstra’s network and will ensure that any faults on the system are detected and repaired quickly,
that network congestion is minimised and the potential risk of major equipment problems is
eliminated.
Not only will the Global Operations Centre help Telstra monitor its national, international,
terrestrial and satellite networks, but it will also provide a unique opportunity for the integration
of future technologies –such as those using Internet Protocol on Telstra’s new Data Mode of
Operation (DMO) next generation infrastructure.
About 190 people were involved in building the new Centre, of which 160 were trades people.
Telstra awarded the contract to supply the digital videowall to Electroboard Pty Ltd, which is
100% Australian owned.
Case Study 7: Telstra, ERG and ANZ on Smartcards
Telstra, ERG and ANZ have agreed on non-binding principles for the development of an open
common platform for the processing of Smartcard transactions in Australia. This will accelerate
the growth of the Smartcard industry and place Australia at the forefront of the evolution of
developments in the international Smartcard arena. Telstra is investing in the new Smartcard
applications development, helping to establish local vendors and expanding the range of
opportunities for Australian vendors to work on Smartcard technology to compete both
domestically and internationally.
Research and development
Telecommunications carrier IDPs promote research and development (R&D) that contributes to
the growth of the Australian telecommunications industry.
Research and development is considered to include systematic, investigative and experimental
activities involving innovation or high levels of technical risk, the outcome of which is new
knowledge or new or improved materials, products, devices, processes or services.
A carrier is required to provide details of all planned R&D activities over the period of its plan
and must comply with its undertaking relating to research and development activities. The
carriers’ R&D undertakings in the IDPs that were current at 30 June 1999 totalled $850 million.
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In 1998-99, carriers reported strong figures for expenditure on R&D. Spending on R&D totalled
over $430 million, and shows substantial progress by carriers towards meeting their undertakings
in this area. This amount included Telstra’s record R&D spending of $337 million, which
included particular focus on the Internet and data environment, broadband services, mobility
services and systems, and personalised services.
Total R&D expenditure since 1 July 1997 is $790 million. Carriers are undertaking R&D
projects in a wide range of areas including:
internet and e-commerce applications;
broadband services;
billing systems;
switch management software; and
GSM and CDMA network systems.
Case Study 8: AAPT
AAPT has invested considerable resources in hardware, software and development. Most
expenditure is upon mainframe development and support for MEGA, the advanced
telecommunications billing platform that AAPT has used since 1991.
Much of AAPT's software development is conducted in-house, with over 50 full-time staff
dedicated to this task. However, AAPT also supports local industry and Australian companies
wherever possible. Examples from the last financial year are as follows:
Turbosoft Pty Ltd, an Australian company, has been provided with the opportunity to use
AAPT as a beta test site for the mainframe emulator TTWIN system. Turbosoft will export
the finished product around the globe once testing is complete.
VET Ltd is an Australian company specialising in computer virus scanning. AAPT has
worked in close alliance with VET Ltd using the virus scanning products.
AAPT has developed Zeus, a highly advanced credit collection system in collaboration with
local industry consultants and companies.
AAPT has developed web based on-line reporting for its New Technology Network,
including full service level agreement features.
Case Study 9: PanAmSat
PanAmSat is supporting the Centre for Telecommunications and Information Engineering
(CTIE) located at Monash University. The group concentrates on video-based applications, and
has units specialising in advanced networks (optical and wireless), servers and software
components. It also operates a test-bed network with ATM and IP components, and connections
to Telstra and Optus ATM and cable networks.
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Case Study 10: Cable & Wireless Optus (CWO)
In the early 1990s CSC developed software for CWO for its satellite mobile phone product
MobileSat. The software is jointly owned by CSC and CWO and both CSC and CWO have
successfully led sales of versions of the MobileSat software.
CSC has benefited from its involvement in the original MobileSat product with the establishment
of a world leading Telecommunications Software Development Group. The group markets its
capabilities, as well as versions of the jointly owned MobileSat software, internationally and also
continues to work with CWO locally in many areas including the $60 million Defence Mobile
Communications Network.
Export development
The IDPs outline each carrier’s export oriented activities and future opportunities for Australian
industry in the global market. The opening up of the carrier market will help to develop a world
competitive Australian communications industry which has the potential to achieve strong export
growth. Many of the export opportunities relate to companies that develop and supply hardware,
software and services.
In 1998-99, the activities of the carriers resulted in exports of $200 million. These exports were
mostly undertaken by the carriers' strategic partners as a result of their relationships with the
carriers. Exports in the past two years have totalled $830 million. Several carriers are
developing substantial international and export sales strategies which are planned to come to
fruition over the next few years.
Case Study 11: Telstra
Telstra’s “state of the art” corporate billing system FLEXCAB, developed in consultation with
Andersen Consulting, has been sold to a number of overseas operations. Most recently it was
selected by a major American telecommunications company US WEST to meet its customer
billing requirements. US WEST is a significant player in the US telecommunications market
with 25 million customers, approximately 48,000 employees and A$10.3 billion in revenue. Its
support of Telstra’s FLEXCAB demonstrates Telstra’s success in producing and marketing
winning products with the potential for bringing export dollars to Australia. The sale of
FLEXCAB to US WEST, and components of it to another US telco, Ameritech, follows the
successful 1997 sale of FLEXCAB to Telecom Argentina.
Case Study 12: PanAmSat
PanAmSat (Asia) Pty Ltd is the company’s Asia Pacific Regional Headquarters (RHQ). During
the reporting period, the Sydney RHQ operation employed 12 staff who were responsible for
exporting a range of services to PanAmSat’s regional customers, extending through South East
Asia, North Asia, India, Japan, Korea, Guam and Russia. These included network design,
telecommunications and broadcasting consulting, operational training, engineering/technical
support and problem resolution, management, regulatory, marketing and administration services.
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Case Study 13: Davnet
Davnet is currently pursuing an aggressive strategy to penetrate overseas markets including the
South East Asia region and export technology and other services. In April 1999, Davnet started
its first overseas market presence by forming a joint venture with a Chinese utility. Ownership of
the new entity, Davnet DigiTel (China) Ltd, will be 75/25 Joint Venture. The venture
relationship will create opportunities for Davnet to export its wireless intellectual property.
Employment and training
Employment and training are critical to the future direction of the Australian information
industries as a whole. In promoting training schemes and staff development, the IDP
arrangements seek to create a workforce with the requisite skills for Australian industry to
compete internationally.
Carriers are required to provide details of employment and training schemes planned for the
period of their Industry Development Plan. Total direct employment by the carriers at June 1999
was 64 100. At least another 5 000 positions were maintained within supplier companies
specifically to meet carrier requirements.
Carrier undertakings on training in their IDPs at 30 June 1999 amounted to $620 million. In
1998-99, carriers reported strong progress towards achieving their planned training programs,
with expenditure of $210 million during the year and a total of $435 million over the past two
years.
Case Study 14: Cable &Wireless Optus (CWO)
The outsourcing of CWO’s IT applications development and maintenance services to IBM
Australia brings together two companies that are already large and successful. In less than a year
this relationship has led to the creation of over 200 new jobs. The positions arose as new
projects were initiated to provide CWO with efficient and innovative IT systems and this trend is
expected to continue into the future.
Case Study 15: Cable & Wireless Optus (CWO)
CWO’s ongoing relationship with Stowe Australia is an integral part of Stowe’s regime for
training its electro-technical apprentices. Through its relationship with CWO, Stowe Australia
has been able to rotate its apprentices through CWO locations, such as exchanges, to give them
exposure to technologies and work ethics that enrich their development as technical
tradespeople.
Stowe has also had the opportunity to work closely with CWO’s Engineering Group to develop
mutually beneficial, innovative solutions to overcome problems in the field.
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Meeting the needs of people with disabilities
Advances in telecommunications offer the potential to provide disabled people with improved
access to services.
The IDP arrangements encourage carriers to consider the needs of persons with disabilities,
particularly in the development of new products and services. A statement of any plans a carrier
may have to improve access to communications services by disabled users is required in a
carrier’s IDP.
While telecommunications services often provide an inherent benefit for disabled users, several
carriers are researching and developing products specifically for use by disabled people.
Case Study 16: Telstra
Telstra’s Disability Plan ensures that people with a disability have the same rights as the rest of
the community and throughout 1998-99, Telstra continued to be involved in many research and
development projects for people with disabilities.
For example, Telstra, Cochlear Ltd and Trillium Communications Pty Ltd have collaborated in
the development of a new telephone adaptor for Cochlear implantees which is to be provided by
way of hire to eligible customers as part of the Disability Equipment Program.
Case Study 17: Vodafone
The objective of the Usability Survey conducted by the Department of Psychology, University of
Melbourne, was to undertake a study of the ease of use of mobile phones, with reference to the
"customer specific materials" provided by Vodafone. A range of social, educational,
employment and personal factors were analysed. The aim was to identify any specific areas
where problems are encountered, as well as to highlight beneficial areas. The study undertaken
was a detailed investigation over 18 months looking at a wide range of factors. The results were
detailed and summarised in two reports.
The recommendations covered many aspects regarding the presentation and delivery of
Vodafone literature. They aim to make the task of understanding and using mobile phones easier.
Although not specifically targeted, the study made recommendations regarding the value of the
Vodafone material for both sight and hearing impaired.
For the sight impaired, the recommendation was to produce some form of "Talking Book" to
explain the services and uses of a mobile phone. Vodafone incorporated this recommendation
into the CD ROM version of the "Essential Vodafone". The CD ROM provided a multimedia
version of the "Vodafone Essential" and gave overviews and instructions for using a mobile
phone in verbal form.
For the hearing impaired, the recommendation was to work with some of the present fixed line
technology designed for the hearing impaired. This will enable them to use the same technology
such as telephone typewriters over a mobile phone.
Vodafone continued to actively support research by Australian Hearing Services into the effect
of GSM phones on hearing aids and cochlear implants.
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ATTACHMENT A
COMPANIES HOLDING A TELECOMMUNICATIONS CARRIER LICENCE AT
30 JUNE 1999
This attachment lists the companies holding the 29 telecommunications carrier licences that had
been issued at 30 June 1999. The carriers are listed in the order that the licences were granted
by the Australian Communications Authority.
1. Telstra Corporation Ltd Licence granted 1 July 1997
2. Optus Networks Pty Ltd Licence granted 1 July 1997
3. Optus Mobile Pty Ltd Licence granted 1 July 1997
4. Vodafone Pty Ltd Licence granted 1 July 1997
5. AAP Telecommunications Pty Ltd Licence granted 1 July 1997
6. Primus Telecommunications Pty Ltd Licence granted 1 July 1997
7. Optus Vision Pty Ltd Licence granted 1 July 1997
8. Telstra Multimedia Pty Ltd Licence granted 1 July 1997
9. Horizon Telecommunications Pty Ltd Licence granted 25 July 1997
10. OMNIconnect Pty Ltd Licence granted 19 August 1997
11. United Energy Telecommunications Pty Ltd Licence granted 27 August 1997
12. Windytide Pty Ltd Licence granted 4 September 1997
13.Northgate Communications Australia-Ballarat Pty Ltd Licence granted 3 December 1997
14. Macrocom Pty Ltd Licence granted 18 December 1997
15. Oz Telecom Pty Ltd Licence granted 2 March 1998
16. WorldCom Australia Pty Ltd Licence granted 24 March 1998
17. Iridium South Pacific Pty Ltd Licence granted 2 April 1998
18. PanAmSat Asia Carrier Services Inc Licence granted 1 May 1998
19. POWERTEL Ltd Licence granted 6 May 1998
20. Agile Pty Ltd Licence granted 15 May 1998
21. Xinhua News Telecommunications Pty Ltd Licence granted 1 June 1998
22. Amcom Pty Ltd Licence granted 28 July 1998
23. Davnet Pty Ltd Licence granted 1 September 1998
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24. SCCL Australia Limited Licence granted 22 September 1998
25. Hutchison Telecommunications (Aust) Ltd Licence granted 30 September 1998
26. TransAct Carrier Pty Ltd Licence granted 26 February 1999
27. Soul Pattinson Telecommunications Pty Ltd Licence granted 19 March 1999
28. One.Tel GSM 1800 Pty Ltd Licence granted 25 March 1999
29. Commcord Pty Ltd Licence granted 29 June 1999
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