Annual Performance Statement 2018–19

Introductory statement

I, Nerida O’Loughlin, as the accountable authority of the Australian Communications and Media Authority, present the 2018–19 Annual Performance Statement of the Australian Communications and Media Authority, as required under subsection 39(1) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). In my opinion, this Annual Performance Statement accurately reflects the performance of the Australian Communications and Media Authority and complies with subsection 39(2) of the PGPA Act.

Nerida O’Loughlin PSM
Chair and Agency Head

ACMA performance framework

The ACMA’s performance framework consists of our:

• corporate plan, which sets out what we intend to achieve
• Portfolio Budget Statements (PBS) targets and criteria for the programs of work we are funded by the government to deliver
• Annual Performance Statement (APS), which provides an assessment of our activities in achieving our purpose.

In 2018–19, we revised our corporate plan to better position our agency for the future. This included developing a new purpose, vision and mission statement, and priorities and strategies (collectively referred to as ‘strategic priorities’).

There are a number of activities under each strategic priority in our corporate plan that we undertake to achieve our purpose. The performance measures associated with each activity, along with the benefits that each activity aims to deliver, are the basis for assessing our performance in meeting our purpose.

Figure 1.3 shows the relationship of the purpose and strategic priorities in our corporate plan with the outcome and programs funded by the government in the PBS. Please note that Program 1.3 relates to the Office of the eSafety Commissioner and is reported on in Part 2—Office of the eSafety Commissioner annual report 2018–19.

Figure 1.3 Alignment of the ACMA’s PBS, corporate plan and APS

Analysis of performance against purpose

During 2018–19, the ACMA continued to undertake key activities to meet its purpose of maximising the economic and social benefits of communications and media for Australia. These activities supported a connected, informed and entertained Australia by promoting public confidence in the communications and media sector, managing spectrum to benefit all Australians and anticipating changes in our environment.

We achieved our PBS outcome by using regulation, education and advice to balance the needs of industry and the community.

Benefits to our stakeholders

The following is an overview of the benefits to our stakeholders under each of our strategic priorities and the outcomes we delivered this year in achieving our purpose.

Strategic Priority 1—Public confidence in communications and media services through the provision of safeguards, information and advice

Benefit: Appropriate and relevant safeguards are available to Australians using communications and media services

The new safeguards we introduced this year addressed consumer harms by:

• protecting consumers migrating to services delivered over the NBN
• providing a ‘safe zone’ free of gambling advertising during live sport across broadcasting and online platforms.

We reviewed existing regulation and recommended:

• more flexible regulation for international mobile roaming
• more efficient emergency call service regulation.

We also established a scam technology project to address the proliferation of scam calls, emails and SMS.

Benefit: Compliant businesses and confident consumers

We prioritised and targeted our responses to risks of non-compliance and consumer harm with actions taken in relation to:

• the consumer experience of migrating to services delivered over the NBN
• telemarketing practices—solar industry, financial services and SMS spam requirements
• inaccuracies in the Integrated Public Number Database (IPND).

Action arising from our investigations included:

• Telstra providing an enforceable undertaking to improve the Triple Zero network and develop new protocols for dealing with disruptions
• infringement notices of up to $285,600 in relation to breaches of telemarketing rules
• remediation of missing or inaccurate IPND records and measures to address systemic compliance issues.

The efficiency and effectiveness of our compliance and enforcement work was reflected in:

• over 90 per cent of 177 investigations being completed within benchmark time frames
• evidence that our activities have disrupted provision of illegal offshore gambling to Australians.

Consumers and audiences were able to make complaints about non-compliance with legislation, standards and codes to the ACMA using a diverse range of avenues, including online complaint forms, email, phone, post and SMS.

Benefit: Programs deliver public interest outcomes

Regional and small publishers were supported by the Regional and Small Publishers Innovation Fund to transition to, and compete more successfully in, the evolving media environment.

Consumers were able to register, check or remove their numbers on the Do Not Call Register (DNCR) and entities could check numbers against the register.

Consumers were able to have their phone numbers allocated and transferred.

Benefit: Confident use and responsible provision of communications services

Stakeholder enquiries were responded to promptly and we provided timely information about the rules and regulations we administer:

• our Customer Service Centre resolved an average of 95 per cent of enquiries within three working days
• accessible and timely information was provided about new NBN rules and gambling
• advertising restrictions
• media releases, guides and alerts were provided on the ACMA website and through social media on a range of other issues, including the publication of our investigations and enforcement actions.

Strategic Priority 2—Spectrum arrangements that benefit all Australians through efficient and effective spectrum management

Benefit: Australia’s needs are addressed in international spectrum harmonisation processes

We contributed to strengthening Australia’s position in international negotiations to achieve better outcomes for spectrum use in Australia, through providing technical advice and expertise.

We supported the Department of Communications and the Arts (DoCA) as the lead agency at a number of international meetings in preparation for the World Radiocommunication Conference (WRC-19) in late 2019, including developing regional negotiating positions with a number of countries in the Asia-Pacific.

Benefit: Planning arrangements enable spectrum to be used for the greatest possible benefit to Australians

Competing needs and interests of stakeholders along with international developments were balanced and reflected in our spectrum work program, published after stakeholder consultation.

Thirty-three stakeholder submissions were considered in the development of the 2018–22 spectrum work program which led to adjustments in our planning priorities, updates to our
five-year spectrum outlook and inclusion of planned consultations over the period. In addition to the forward work program, other areas covered included:

• international engagement
• planning and optimising established spectrum frameworks
• spectrum management practice improvements
• licensing
• pricing
• compliance and enforcement.

Stakeholders have found the work program and five-year spectrum outlook to be a useful planning tool, particularly the inclusion of the progress report.

Benefit: Access to spectrum is on terms and conditions that encourage its use to be optimised and is managed as efficiently as possible

Benefit: Defence, public safety and community users enjoy access to sufficient spectrum

Spectrum use was optimised by:

• allocating all 3.6 GHz band lots through auction—technology-flexible spectrum licences were issued in this band to deploy 5G services at the discretion of the licensee, removing the need for further regulatory intervention
• facilitating roll-out of digital radio in the remaining capital cities—Canberra, Darwin and Hobart
• completing the conversion of nine regional commercial radio services from AM to FM transmission—improving audio quality for listeners in regional areas
• enabling new radio services and improving coverage of existing radio services by changing several licence area plans.

Public safety was enhanced by:

• developing a new class licence for body scanners in airports
• providing exemptions for law enforcement agencies to use drone and mobile phone
• jamming devices.

Stakeholders benefited from the efficient delivery of our licence administration with all timeliness benchmarks met.

Benefit: Credible compliance and enforcement supports and underpins the value of spectrum allocation and licensing arrangements

We managed the risk of interference and other harms to the legitimate use of spectrum and protected public safety by:

• responding to complaints about interference in relation to mobile and non-mobile networks and Emergency Position Indicating Radio Beacon (EPIRB) and other public safety interference
• targeting potential sources of interference including mobile phone repeaters and prohibited devices (jammers)
• taking action in relation to the unlicensed use of spectrum
• auditing electromagnetic energy (EME) compliance in response to community concerns over the use of small cells for 5G
• investigating equipment standards and customer cabling issues.

Strategic Priority 3—A regulatory framework that anticipates change through monitoring our environment and influencing regulatory responses

Benefit: The ACMA, the government and the community are informed about the development of communications markets, including against relevant public interest outcomes

Regulatory responses were informed by evidence gathered through research:

• consumer research informed new NBN rules
• international best practice for unsolicited communications informed our report to the then Minister for Communications and the Arts
• the Scam Technology Project was established in response to unsolicited communications research, ACMA compliance and enforcement data, and a ministerial request
• research in the communications report revealed market and consumer trends and was tabled
• in parliament
• research has commenced in a number of areas—including news on television and radio and the experience of telecommunications consumers—to inform our understanding of the impact developments in these markets are having on public interest outcomes.

Benefit: The ACMA is making optimal and safe use of information to inform evidence-based regulatory analysis and action

Better use of our data will deliver stronger outcomes for our stakeholders. To build our data analysis capacity and capability we established a new data analytics team and developed a governance framework for the project.

Benefit: Regulatory frameworks within which the ACMA operates and associated regulatory measures are appropriate to contemporary market and consumer needs

Measures we took to inform the development of fit-for-purpose regulation included:

• establishing a Regulatory Futures section to examine evolving regulatory approaches
• formally consulting stakeholders through 43 consultation processes with 335 submissions received
• participating in conferences, meetings and working groups, including our spectrum conference, RadComms 2018.

We also made submissions to reviews and inquiries on new and emerging regulatory pressures relevant to our remit.

Benefit: Regulation administered by the ACMA does not impose unnecessary burden on industry or the community

Monitoring the delivery and administration of our regulation led to improvements in our regulatory practice:

• Our annual customer service user satisfaction survey guided improvements to our stakeholder interactions.
• Our annual Regulator Performance Framework (RPF) self-assessment with stakeholder validation supported previous review findings, leading to improved transparency of the Authority’s strategic intent, approach to business, duties, responsibilities, and culture and values that guide its work. We also adopted a whole of agency approach to our compliance priority process, providing greater clarity for our stakeholders about our compliance work.

The outcomes listed above, in relation to each of our strategic priorities, were achieved through the delivery of our performance measures. An assessment of our performance measures against each of our key activities is detailed in the following section.

Strategic Priority 1: Public confidence in communications and media services through the provision of safeguards, information and advice

1.1 Deliver safeguards that meet the needs of Australians using communication and media services

We responded to a number of factors in our environment in prioritising our work under this activity, including evidence of issues being experienced by consumers when migrating to services delivered over the National Broadband Network (NBN); and government policy to restrict exposure to gambling advertising. The results demonstrate our agility in responding to new and urgent issues and our use of evidence in developing safeguards to address consumer harms.

We tracked the effectiveness and efficiency of our existing regulation through reviews and research, leading to improvements in response to changing markets and consumer expectations and preferences, often driven by new technologies.

Assessment of results

New rules to protect consumers migrating to the NBN

In 2018–19, the ACMA responded quickly and decisively to remedy a growing level of consumer dissatisfaction and frustration with the process for migrating to services delivered over the NBN.

Evidence of issues with existing arrangements

We acted in response to industry data revealing a rapid increase in consumer complaints to the Telecommunications Industry Ombudsman (TIO) about the experience of moving to, and using, services delivered over the NBN. Our analysis of this data showed that for the three months to
30 June 2017:

• 55.7 per cent of all network-related complaints were about service quality (faults and speed)
• a further 44.3 per cent of network-related complaints were about connection issues
• complaints about faults took an average time of between 13 calendar days for fibre-to-the-building (FTTB) and wireless customers and 19 calendar days for satellite customers to resolve
• complaints about connection issues took an average time of between 18 calendar days for satellite customers and up to 28 calendar days for fibre-to-the-node (FTTN) and fibre-to-the-premises (FTTP) customers to resolve
• it took an average time of between 22 calendar days for satellite customers, and up to 45 calendar days for FTTN customers, to have their old voice and data services moved across to the network.

New rules delivered

The Complaints Handling Standard (Telecommunications (Consumer Complaints Handling) Industry Standard 2018), developed by the ACMA, commenced on 1 July 2018. The standard provides measures to ensure consumers have their complaints heard and addressed effectively without ‘buck-passing’ across the NBN service supply chain.

This was complemented by Complaints Record-Keeping Rules (Telecommunications (Consumer Complaints) Record-Keeping Rules 2018) that require collection of data about complaints received by providers of phone and/or internet services to consumers (these providers are referred to as carriage service providers (CSPs)) and that this data is regularly reported to
the ACMA.

We also developed and then implemented the following new rules, which commenced on
21 September 2018:

• Consumer Information Standard (Telecommunications (NBN Consumer Information) Industry Standard 2018)—requires CSPs to provide minimum information for services delivered over the NBN, including information about typical busy period speeds, the level of online usage a plan will support and technical limitations.
• Service Migration Determination (Telecommunications Service Provider (NBN Service Migration) Determination 2018)—requires CSPs to test that a new NBN service is working, provide an interim service or other negotiated outcome where the service is not working and test the line to ensure it can deliver the maximum attainable speed.
• Service Continuity Standard (Telecommunications (NBN Continuity of Service) Industry Standard 2018)—requires CSPs to take action where an NBN migration is unsuccessful, through reconnecting customers to their old service, providing an interim service or another negotiated outcome.

New broadcasting and online content rules for gambling advertising

New rules to restrict online gambling advertising during live sports

In 2018–19, following two rounds of public consultation, we made new gambling advertising rules for online content providers. This brought online gambling advertising requirements into line with similar rules for television and radio broadcasting services.

This was the first time that online services streaming live sport were required to comply with gambling advertising restrictions, creating a ‘safe zone’ for children and families to watch live sport across a variety of platforms.

The Broadcasting Services (Online Content Service Provider) Rules 2018 came into effect on 29 September 2018. The rules prohibit gambling advertising during live sport that is streamed online between 5 am and 8.30 pm. At all other times, gambling advertising is restricted during
active play.

The ACMA developed these rules in response to the Australian Government’s policy for stronger restrictions on gambling advertising during live sport, supported by legislation that came into effect on 12 April 2018.

Review of the effectiveness and efficiency of existing regulation

Unsolicited calls in Australia—consumer experience

Published in December 2018, our research found that:

• more than half of Australian adults have received scam calls daily or weekly
• three quarters of Australian adults believe not enough is done to protect individuals from
• scam calls
• two in five people are more concerned about telemarketing than five years ago
• four out of five people believe they did not have an existing relationship with the telemarketer who last called them and were confused about how, or if, their consent was obtained to receive telemarketing calls.

The results of this research led to the ACMA establishing the Scam Technology Project to explore practical technical solutions to address the proliferation of scam calls, emails and SMS over Australian telecommunications networks.

Review of the Telecommunications (Emergency Call Service) Determination
(ECS Determination)

In October 2018, we commenced a review of the obligations the ECS Determination places on carriers, CSPs and the emergency call service providers for Triple Zero (000), 112 and 106. The purpose of the review was to consider whether, in light of technological, environmental and other changes, the ECS Determination remained relevant and effective, or whether changes should be made to better provide assurance of community protections related to the emergency call service.

The first stage of the review concluded that there was a need to revise the ECS Determination to enhance its overall efficiency relating to requirements for reducing non-genuine calls, communications with customers impacted by a disruption to the ECS and improving caller location information. Consultation commenced in June 2019 on a draft revised ECS Determination. A new ECS Determination is expected to be made in 2019–20.

Review of the International Mobile Roaming Standard

We completed a review of the International Mobile Roaming (IMR) Standard which aims to minimise bill shock from international roaming charges. The review identified a need to retain IMR regulation but with a more flexible set of rules in response to changes in consumer preferences.

NBN modem study

We undertook a study to assess the performance of Wi-Fi modems used to supply phone and internet services over NBN FTTN and FTTB technology types. This was to identify the extent to which Wi-Fi modem performance can affect an NBN connection and factors inside a typical home or office environment that may lead to reduced NBN performance.

A report was prepared on the results of this study, along with a practical guide for consumers on choosing an NBN Wi-Fi modem and optimising its performance.

Keeping communities informed on small cell deployments
Case study

In December 2018, we registered a revised version of the Mobile Phone Base Station Deployment Industry Code (the Code) with new, tailored consultation provisions dealing specifically with the deployment of low-powered mobile phone base stations (small cells). Small cells are used to provide mobile coverage to highly populated areas.

The Code is an industry code and was revised by a working committee convened by Communications Alliance, Australia’s peak communications industry body. The working committee had representatives from the telecommunications industry, consumer advocates and the ACMA.

The Code aims to ensure mobile carriers consult with local councils and communities before deploying mobile phone infrastructure in their local area. The new rules which apply to small cell deployments require carriers to:

• notify the local council and the manager, owner or occupier of the property where the facility is proposed to be located
• notify the owners and occupiers of premises in the immediate vicinity of the proposed site
• notify community sensitive locations in close proximity to the proposed site
• place a sign at the proposed site which meets specified criteria
• have regard to and respond to all submissions received during the comment period.

These rules allow carrier processes to be scrutinised and provide opportunities for the views of local communities to be expressed and considered.

We expect to see more and denser deployments of small cells as demand for mobile services increases and as 5G networks are built. The new provisions in the Code are better suited to the rollout of small, rather than large, mobile phone infrastructure. We are closely monitoring the deployment of small cells to ensure communities are consulted in line with the new version of the Code and to identify any new concerns.

1.2 Promote compliance with communications and media safeguards and public interest outcomes through monitoring, complaints-handling, investigating, enforcement and
program delivery

We monitored compliance issues in our environment using complaint statistics, consumer research and trends, as well as information provided by other regulators and consumer groups. This informed targeted audits and investigations, leading to non-compliance being addressed through prompt action. A number of these actions were aimed at reducing the risk of non-compliance in the future by addressing systemic causes of breaches.

We measured our efficiency against benchmark response times and reviewed our effectiveness in implementing new laws to disrupt the provision of illegal offshore gambling to Australians.

The contracts for program delivery that we managed continued to meet key performance indicators for quality, timeliness and cost. We also made grants to assist regional and small publishers adapt to changing market conditions.

Assessment of results

Annual priority compliance areas for telecommunications, spam, Integrated Public Number Database and Do Not Call regulatory frameworks are developed, published and acted upon

Telecommunications

Published compliance priorities for telecommunications addressed the following issues:

• Complaints-handling practices were a major source of consumer concern with an increase in complaints about this issue to the TIO in the preceding year.
• Services delivered over the NBN featured in a rapid increase in consumer complaints to the TIO, as well as industry complaint data highlighting issues with consumer migration to the NBN. We developed and implemented new rules in response to these findings. The time-critical nature of the NBN rollout gave urgency to early and consistent industry compliance with the rules and we launched a comprehensive compliance program soon after they came into effect.
• Selling practices and financial hardship concerns were highlighted in the Financial and Consumer Rights Council’s Rank the Telco report in April 2017, as well as TIO complaint statistics and stakeholder feedback.
• Customer service was the subject of a sharp rise in complaints to the TIO.
• Information about products and services for consumers with a disability was identified as a gap in the knowledge of telecommunications customer services staff, in research commissioned by the Australian Communications Consumer Action Network (ACCAN) in 2017.

We finalised 50 investigations into compliance with the Complaints Handling Standard and the Consumer Information Standard. We also finalised four investigations into compliance with theC628:2015 Telecommunications Consumer Protections Code(TCP code) relating to selling practices and the provision of information about products and services for consumers with a disability.

Unsolicited communications (telemarketing and spam) and the Do Not Call Register

We implemented and published the following priority compliance areas for unsolicited communications in July 2018:

• Solar industry telemarketing continued as a priority in 2018–19 due to ongoing high levels of consumer complaints and indications of non-compliance in relation to:
• lead generators who call to gauge consumer interest in a product and then sell these potential customers to businesses
• calls made to consumers on the DNCR without consent.
• Financial services telemarketing and e-marketing, which can intrude on an individual’s privacy and potentially lead to serious harm through predatory marketing practices targeting
• vulnerable people.
• SMS spam requirements were monitored in relation to consent issues, sender information and the inclusion of an unsubscribe function.

We finalised seven investigations relating to one or more priority areas and commenced proceedings in the Federal Court related to two solar telemarketing investigations.

Integrated Public Number Database

In 2018, we identified potential inaccuracies in the IPND and opened investigations into 11 CSPs. We found large-scale breaches in relation to a service provider rule in the Telecommunications Act and theC555:2017 Integrated Public Number Database (IPND) Industry Code(IPND
Industry Code).

Setting our compliance priorities for 2019–20

This year the ACMA adopted an agency-wide strategic approach to prioritising our compliance work to provide greater transparency, clarity and certainty for industry and consumers.

In determining our annual compliance priorities, we took into account a range of factors including:

• matters of significant public interest or concern
• potential and actual causes of harm to consumers
• areas of risk of non-compliance, from technological developments to specific industries and issues impacting a particular geographical area.

In April 2019, we announced our six compliance priorities for 2019–20:

1. Telecommunications consumer safeguards.
2. Small cell base stations for 4G and 5G and base station compliance.
3. Unsolicited communications.
4. Broadcast news—the focus is on practices of the broadcasters and whether or not the current regulatory framework, including the broadcasters’ codes of practice, are fit for purpose today.
5. Gambling—the key areas of focus being gambling advertising during broadcasts and online, credit betting and offshore unlicensed gambling.
6. Solar inverter interference and unlicensed activity in the 5.6 GHz and 400 MHz spectrum bands.

The setting of these priorities will become an annual process, led by Chris Jose as Chair of our Compliance and Enforcement Committee.

Effective and efficient investigations and enforcement outcomes
are delivered

NBN consumer experience safeguards

• Complaints Handling Standard—the ACMA found widespread non-compliance with the requirements to have written complaints-handling processes. We also investigated one CSP for failing to implement their complaints-handling process in accordance with the standard.
• Consumer Information Standard—we concluded an audit of 25 CSPs, relating to advertising and information provided to consumers about NBN plans, resulting in eight investigations
• being undertaken.
• Service Continuity Standard and Service Migration Determination—the first in a series of audits was undertaken to assess compliance.
• Record-Keeping Rules—complaints-handling performance was monitored through quarterly data collection.

Of the 50 investigations completed, 49 were finalised within the benchmark time frame of six months. The delay in one investigation was caused by the complexity of the matter, the high number of potential breaches to be assessed and the volume of evidence to review.

Other telecommunications consumer safeguards
Table 1.3 provides details of investigations into compliance with other telecommunications consumer safeguards, including:

• Telecommunications (Consumer Protection and Service Standards) Act 1999
• Telecommunications Act, including Part 6 of Schedule 2 (priority assistance)
• Carrier Licence Conditions (Telstra Corporation Limited) Declaration 1997
• C628:2015 Telecommunications Consumer Protections Code
• Telecommunications (Consumer Complaints Handling) Industry Standard 2018.

We met our benchmark time frame for completing investigations within six months for 23 of the 37 investigations. The remainder of these investigations exceeded the six-month benchmark due to their complexity and took, on average, 6.8 months.

Please refer to Appendix 6 for the types and outcomes of these investigations.

Safeguards related to mobile phone base station deployments

In 2018–19, we finalised four investigations into compliance with the C564:2011 Mobile Phone Base Station Deployment Code. The investigations resulted in enforcement action being taken against two carriers.

• Two investigations were finalised against PIPE Networks which resulted in the ACMA issuing one direction to comply.
• One investigation was finalised against PIPE Networks which resulted in no further action
• being taken.
• One investigation was finalised against Telstra which resulted in the ACMA issuing one
• formal warning.

See Appendix 6 for details of the contraventions and the outcomes of these investigations.

Carriers’ powers and immunities

We completed 14 compliance assessments about alleged contraventions of Schedule 3 to the Telecomunications Act and the Telecommunications Code of Practice 2018.

We did not find any breaches of Schedule 3 to the Telecommunications Act or the code
of practice.

Emergency call service

The emergency call service is a national operator-assisted service that connects emergency callers free-of-charge to state and territory emergency services—police, fire and ambulance.
This service is provided by:

• Telstra, which is the emergency call person for the emergency service numbers Triple Zero (000) and 112
• the National Relay Service provider, Australian Communication Exchange Limited, which is the emergency call person for the emergency service number 106. This service is used by people who are deaf or have a hearing or speech impairment and who use a teletypewriter.

During the reporting period, we concluded an investigation into compliance with the ECS Determination, arising from a disruption to the Triple Zero service on 4 May 2018. The disruption was triggered by a fire in a cable pit and was compounded by network software failures.

We found that Telstra had breached section 22 of the ECS Determination by failing to ensure that 1,433 calls made to Triple Zero using its network were carried to the operator of the emergency call service.

In October 2018, we accepted an enforceable undertaking from Telstra to improve the redundancy and diversity of its network, develop new communication protocols to be used in the event of another disruption and benchmarking its systems against international best practice.

Interactive gambling

We targeted our compliance and enforcement activities under the Interactive Gambling Act 2001 (IGA), to have the greatest impact on the supply of illegal gambling services to Australians. In addition to responding to complaints, we initiated investigations, including into both illegal wagering services and compliance with credit betting prohibitions.

Our Disrupting illegal offshore gambling—12-month report into the ACMA’s actions under the Interactive Gambling Act 2001, published in October 2018, revealed that our activities in implementing the new laws were disrupting the provision of illegal offshore gambling to Australians, with:

• thirty-three prominent offshore wagering sites withdrawing from Australian markets
• revenue to illegal offshore gambling websites falling
• targeted education, engagement and enforcement action taken by the ACMA raising awareness of Australia’s laws and enhancing compliance
• valuable support from overseas gambling regulators and third parties such as software providers and payment processors changing behaviour in the offshore gambling market.

Broadcasting

We completed 57 investigations into broadcasters’ compliance with codes of practice, licence conditions and standards related to the BSA, with all being finalised within our six-month benchmark. Details of breach and non-breach findings by category of broadcasting service are in Appendix 5.

Investigations into the Christchurch terrorist attack
Case study

The ACMA commenced 10 investigations into coverage of the 15 March 2019 terrorist attack in Christchurch, New Zealand, by Australian television broadcasters. The investigations considered news and current affairs programs broadcast over the weekend of 15–17 March 2019 against relevant provisions of various industry codes of practice. The investigations included the review of more than 200 hours of broadcast footage as well as analysis of the detailed information provided by broadcasters about the editorial decisions they made in relation to that footage.

The ACMA considered that there was some material and treatment of that material that raised questions about whether there was compliance with the broadcasting codes of practice. However, given the level of responsibility shown by the broadcasters and the
unique circumstances of this incident, the ACMA did not make compliance findings about individual broadcasts.

The individual investigations are listed in the tables in Appendix 5 as ‘Completed, no finding’.
We prepared a consolidated report with a number of observations arising from our investigation for industry consideration. This report will be published in the next reporting period.

Unsolicited communications and the DNCR

In 2018–19, we undertook investigations and enforcement actions under the:

• Spam Act 2003(Spam Act)
• Do Not Call Register Act 2006(DNCR Act)
• Industry standards under the Telecommunications Act, specifically the Telecommunications (Telemarketing and Research Calls) Industry Standard 2017.

Key enforcement outcomes included:

• Commencement of proceedings in the Federal Court of Australia against Balaska Pty Ltd (a solar business) and V Marketing Pty Ltd (a call centre) and their respective directors, alleging breaches of telemarketing laws. The ACMA is alleging that V Marketing made telemarketing calls to numbers on the DNCR and that Balaska caused the calls to be made.
• Lead My Way Pty Ltd paid an infringement notice in the sum of $285,600 for telemarketing calls made to numbers on the DNCR without consent.
• Sumo Power Pty Ltd paid an infringement notice in the sum of $46,200 for telemarketing calls made to numbers on the DNCR without consent.
• Foxtel Management Pty Ltd paid an infringement notice in the sum of $25,200 for not ending telemarketing calls after the call recipients asked for, or otherwise indicated that they wanted, the call to end, and for not having adequate contractual arrangements in place with a call centre it used.
• Brand Link Media Pty Ltd paid an infringement notice in the sum of $12,600 for emails sent without consent. The ACMA also accepted an enforceable undertaking from Brand Link Media.
• Primus Telecommunications Pty Ltd paid an infringement notice in the sum of $8,400 for telemarketing calls made to numbers on the DNCR after consumers had withdrawn consent.
• iSelect Pty Ltd paid an infringement notice in the sum of $8,400 for telemarketing calls made to numbers on the DNCR without consent.

We completed 22 investigations into unsolicited communications and the DNCR Act and related standards, and all were finalised within our eight-month benchmark.

Integrated Public Number Database

We finalised enforcement actions in relation to 11 CSPs for breaches related to the IPND. The 11 CSPs investigated are responsible for over 85 per cent of the approximately 72 million records in the IPND. Of the 11 CSPs investigated we found approximately 1.41 million records from the IPND were missing against the relevant provider and 4.93 million were inaccurate (all have since been remediated).

All 11 CSPs were given remedial directions in relation to breaches of the service provider rule in relation to clause 10 of Schedule 2 to the Telecommunications Act and directions to comply with the IPND Industry Code which require:

• remediation of outstanding numbers at the time of the decision
• independent audits
• quarterly reconciliations
• reporting to the ACMA.

Our investigations into CSP compliance with their IPND obligations also uncovered that:

• all the CSPs had underlying systems issues causing non-compliance
• none of the CSPs regularly used discretionary feedback mechanisms available in the IPND Code to check data
• several CSPs were confused about their obligations under the IPND Code.

All of these IPND investigations and enforcement outcomes were finalised in five months, within our benchmark key performance indicator of six months.

Effective and efficient avenues for consumer complaints are available

Our website continues to provide consumers and audiences with information about making a complaint. There are several channels for consumer and audience complaints:

• mobile phone base station deployments—complaint form, email, phone, post
• carriers’ powers and immunities—email, phone, post
• installation of fibre-ready pits and pipes—email, phone, post
• emergency call service—email, phone, post
• interactive gambling services—online complaint form, post
• broadcasting service—email, phone, post, online complaint form
• unsolicited telemarketing calls—phone, online complaint form
• spam complaints—email, SMS, online complaint form.

Indicators of the effectiveness and efficiency of our complaint processes include the number of contacts made by citizens and consumers and our response times. These numbers are listed
in Table 1.7.

The Regional and Small Publishers Innovation Fund grants program
is implemented

We implemented the first round of the Australian Government’s Regional and Small Publishers Innovation Fund (the Innovation Fund), with our internal auditor concluding in July 2018 that:

[…] the ACMA is well prepared to manage the grant component of the Regional and Small Publishers Innovation Fund. The grant management framework developed by the ACMA complies with the Commonwealth Grants Rules and Guidelines (CGRGs) and Department of Finance requirements.

[…] The grant management framework is supported by comprehensive policies, procedures, guidelines, templates, and a grant management system.

The Regional and Small Publishers Innovation Fund grants are made within published time frames

We administered the Innovation Fund, which is designed to support regional and small publishers to transition to, and compete more successfully in, the evolving media environment.

Up to $48 million, over three financial years, is available in grants through an open competitive selection process. We were assisted in assessing applications by an Advisory Committee appointed by the Minister for Communications and the Arts.

The results of the first round of the Innovation Fund were announced on 21 December 2018, with around $3.8 million (including GST) in grants awarded. These grants were made to 28 successful applicants. Details of the grants were published on GrantConnect within 21 days of the respective grant agreement being executed, as required by the CGRGs.

The total amount of grants allocated in Round One was lower than expected due to several factors. The guidelines for the next round have been revised to take account of these factors, including feedback from Round One applicants.

In response to the underspend in the first round, the government requested the ACMA to open a new round for up to $12.4 million in grants, limited to regional publishers of public interest journalism. The ‘Regional Grant Opportunity’ was open for applications from 5 April–14 June 2019 and 113 applications were received. The grant outcomes are expected to be decided by October 2019.

Contractual service levels for the Do Not Call Register are met

The DNCR is in its twelfth year and is operated under contract by Salmat Digital Pty Ltd (Salmat). Consumers can register, check or remove their numbers and industry can access the number-checking (washing) service and their accounts.

During 2018–19, Salmat met the key performance indicators required in its contract as shown in Table 1.8.

Numbering provider meets contractual milestones

The Telecommunications Numbering Plan was maintained in line with the requirements of the Telecommunications Act. Number allocation and transfer services were available throughout the period and we monitored industry compliance with the relevant telecommunication industry codes and standards. The numbering system contractor, ZOAK Pty Ltd, met all contractual obligations and key performance indicators.

1.3 Build consumer and industry understanding of risks, rights and responsibilities

Accessible and timely information to assist our stakeholders to navigate the rapidly changing communications and media environment is increasingly important. We measure the efficiency of our Customer Service Centre (CSC) by benchmarking enquiry response times.

Our effectiveness in informing consumers and industry, particularly about new rules and emerging risks, is enhanced by our use of different avenues and channels, including our website, social media, workshops and conferences.

Assessment of results

Prompt and efficient responses to consumer and citizen enquiries through the Customer Service Centre are provided

Our single-point-of-contact CSC has streamlined processes for stakeholders interacting with the ACMA. The CSC handled an average of 3,297 direct customer interactions each month, including licensing and allocation enquiries and applications. Our benchmark was met with an average of 95 per cent of enquiries being resolved within three working days.

Accessible and timely information is available about the rights of consumers and the responsibilities of businesses, including through transparency of investigation and enforcement outcomes

NBN consumer experience safeguards

We informed industry about their obligations under new regulations to protect consumers migrating to services delivered over the NBN, including by:

• conducting ‘tune-up’ seminars in July 2018 for industry to attend in person or online
• publishing information about the new regulations and our approach to compliance
• publishing A better practice guide for NBN providers, developed with the Behavioural Economics Team of the Australian Government, to assist industry to comply with the Consumer Information Standard.

We informed the wider community about these enhanced safeguards through media releases and information on our website.

Telecommunications customer service

In February 2019, we published 2017–18 telecommunications customer service performance data on the five largest telecommunications companies. This was the first time we had asked for customer service performance data about call waiting times, call abandonment rates and resolution of customer service enquiries at first contact. This data is part of the suite of data we collect to monitor the telecommunications consumer experience.

Unsolicited communications and the DNCR

In addition to guides and online information published to inform industry of their obligations and consumers of their rights about spam and telemarketing, this year we used social media to issue consumer alerts about:

• wangiri scams
• sextortion
• scammers targeting Optus, the DNCR and NBN Co.

Raising awareness about new rules for online gambling advertising

We issued a media release to announce the implementation of the new rules for online gambling advertising and published consumer advice and an online complaints form on the ACMA website. We also published information for industry about exemptions to the rules and an application form for exemptions.

We presented on the gambling-related rules at the:

• EGR Power Summit in February 2019, to online gambling industry stakeholders
• inter-jurisdictional regulators’ conference in February 2019, to state and territory gambling compliance managers
• Victorian Responsible Gambling Foundation lunchtime learning session in March 2019.

Transparent investigation and enforcement outcomes

Each quarter we published enforcement actions, investigation outcomes, complaint data and trends and compliance contacts in relation to telecommunications, broadcasting, spam and telemarketing businesses.

Accessible and timely information is available to consumers

In addition to our investigations and quarterly reports, we updated information on our website and used social media channels to raise consumer awareness about new and existing safeguards.

• Targeted e-bulletins—we engaged with stakeholders through our range of e-bulletins
• and subscriber lists. We had more than 20,000 subscribers and sent 201 e-bulletins during 2018–19.
• Social media—we engaged with a range of stakeholders via Twitter, Facebook, LinkedIn and Instagram, with more than 600 posts across these channels and over 20,000 subscribers.

We released the following e-bulletins through our free subscription service:

• Engage—monthly consumer-focused updates on ACMA activities
• Telco matters—telecommunications industry updates and regulatory issues
• compliance and labelling supplier updates
• unsolicited communications compliance updates for e-marketers and telemarketers
• spectrum management and RadComms conference updates
• Innovation Fund updates.

Other publications in the reporting period included:

• NBN consumer experience: Households and businesses—the end-to-end journeyresearch report, August 2018
• Disrupting illegal offshore gambling—12-month report into the ACMA’s actions under the Interactive Gambling Act 2001, October 2018
• Unsolicited calls in Australia—Consumer research report, December 2018
• A guide to small cellsfact sheet, February 2019
• Communications report 2017–18, February 2019
• ACMA Scam Technology Project—Terms of Reference, March 2019
• Combating scamsdiscussion paper, March 2019
• The future delivery of radio services in Australiaissues paper, April 2019.

We made significant progress with our Website Transformation Project in 2018–2019, releasing a beta ACMA website to the public in June 2019. The project has followed the Digital Transformation Agency (DTA) Digital Service Standard by developing a user-centred, secure, responsive and accessible website. We are using a staged approach to consult with our stakeholders to ensure it meets their needs. We expect that the new ACMA website will go live in the next reporting period.

Strategic Priority 2: Spectrum arrangements that benefit all Australians through efficient and effective spectrum management

​2.1 Plan the availability of Australia’s radiofrequency spectrum to optimise its value to the Australian community

We support Australia’s participation in international spectrum management fora, including efforts to harmonise international spectrum to achieve greater efficiencies in the operation of spectrum domestically. This means that future demands for spectrum can be more easily accommodated.

We enhance Australia’s negotiating position at international spectrum meetings through providing technical knowledge and expertise. Much of our work in 2018–19 was in preparation for the World Radiocommunication Conference 2019 (WRC-19) which will be reviewing the international treaty governing the use of radio-frequency spectrum and satellite orbits.

Our annual five-year spectrum outlook (FYSO) and work program is developed through a process of stakeholder consultation. This enhances the efficiency and effectiveness of our spectrum planning and allocation by better informing us about the needs and priorities of spectrum users. Publication of the plan also helps to support a more predictable spectrum market.

Assessment of results

Effective Australian participation in the International Telecommunication Union Radio Communications Sector (ITU-R) and regional spectrum management forums is supported for the WRC-19 cycle

We provided technical support to DoCA as the lead agency at high level meetings of the ITU-R and the Asia-Pacific Telecommunity (APT). This included the APT Conference Preparatory Group for WRC-19 (APG-19), which is responsible for developing regional positions on WRC agenda items.

The WRC is the peak international forum for reviewing and revising the international treaty on the use of spectrum and satellite orbits. It meets approximately every four years. We provided advice in relation to WRC-19 agenda items for the conference which will be held in October–November 2019.

The meetings we supported were:

• Australian Preparatory Group (APG) 19-4, Korea, January 2019
• Conference Preparatory Meeting (CPM) 19-2, Geneva, February 2019.

Our aim was to ensure that regional positions align as closely as possible to Australia’s preferred positions.

We also supported the development of preliminary Australian views in preparation for the fifth meeting of APG-19 (APG 19-5) in Japan in July–August 2019.

We led Australian delegations at the following ITU and APT meetings:

• Study Group 4 and Working Parties 4A, 4B and 4C, Geneva, June–July 2019
• Study Group 5 and Working Parties 5A, 5B and 5C, Geneva, November 2018 and April–May 2019
• Task Group 5/1, Geneva, August 2018
• APT Wireless Group (AWG), Bangkok, September 2018.

Although we did not attend, we also managed Australian stakeholder participation in other ITU meetings. The CSIRO was the Head of Delegation for most of these meetings, which were all held in Geneva:

• Study Group 3 and Working Parties 3J, 3K, 3L and 3M, May 2019
• Study Group 6 and Working Party 6B, October 2018
• Study Group 7 and Working Parties 7A, 7B, 7C and 7D, May–June 2019.

We also participated in the following meetings:

• 2nd International Workshop on WRC-2019 Preparation, Switzerland, November 2018
• Asia Pacific Telecommunity (APT) Symposium on Spectrum Management, Philippines, September 2018.

Five-year spectrum outlook and annual work program for spectrum management is developed annually in consultation with spectrum users and government

Each year we consult on our spectrum work program priorities through the development of our five-year spectrum outlook (FYSO).

FYSO 2018–22

On 13 September 2018, we published the Five-year spectrum outlook 2018–22. We considered 33 stakeholder submissions and reflected a number of their suggestions in the final FYSO 2018–22, including:

• adding a summary of forthcoming consultations to assist industry
• updating the five-year environmental outlook
• adjusting planning priorities relating to specific bands, including 2 GHz, 3.3–3.4 GHz, 3.4–3.575 GHz, 3.7–4.2 GHz, 26 GHz and 28 GHz.

These improvements to the FYSO aimed to enhance understanding of the work program and the most significant spectrum management issues.

We report six monthly on our progress in delivering each of the projects identified in the FYSO. The FYSO 2018–22 progress report will be published early in the next reporting period.

FYSO 2019–23

In April 2019, we published the draft FYSO 2019–23 for consultation, including indicative timings of the allocation of licences in the following spectrum bands:

• 850/900 MHz
• 1.5 GHz
• 3.4–3.575 GHz
• 26 GHz
• 28 GHz.

The consultation period closed in May 2019 and submissions will inform the final FYSO 2019–23. The FYSO 2019–23 will be published early in the next reporting period.

Supporting the rollout of 5G
Case study

5G is the next generation of mobile technology. It is characterised by its near-zero latency (the time it takes for data to travel from the sender to the receiver and back again) and faster data download rates (of up to 10 Gbit/s with a peak data rate of up to 20 Gbit/s).

The ACMA is facilitating 5G applications in Australia by planning new frequency bands, optimising bands currently available for wireless broadband and working internationally to identify new bands capable of supporting its use.

In 2018, we allocated the 3.6 GHz band, while the 26 GHz, 28 GHz and 60 GHz bands are at various stages of being planned. In addition, bands already available for wireless broadband will be optimised to allow for possible 5G use by changing existing technical frameworks and reconfiguring the bands to consolidate spectrum.

The ACMA also actively participates alongside DoCA in discussions to support international spectrum harmonisation, including WRC-2019, where the needs of International Mobile Telecommunications (IMT) and the competing demands for the use of bands will be a major item on the agenda.

The ACMA’s work supporting 5G applications, and its international engagement, is designed to ensure spectrum use is optimised to benefit all Australians.

2.2 Allocate and licence access to the radiofrequency spectrum, using both administrative and market-based methods,

ensuring adequate provision for defence, public safety and community purposes
We determined that in the current environment the most efficient method for allocating the 3.6 GHz band licences was through an auction. The timely auction of this band ensured that it is available for the early delivery of next generation 5G services to the Australian public and industry.

In responding to changing needs, and to maximise spectrum value, we will be issuing technology-flexible spectrum licences for the band, allowing winning bidders to determine how and when to deploy 5G services.

We also responded to public safety concerns by making exemptions to facilitate body scanners in airports and law enforcement agencies’ use of drone and mobile phone jamming devices. We changed several licence area plans to enable new radio services or improved coverage. We continued to meet our timeliness benchmarks for licence administration.

Assessment of results

The auction of the 3.6 GHz band is conducted

We conducted the 3.6 GHz band spectrum auction in November and December 2018, resulting in:

• all 350 lots available at auction being sold, to four companies
• approximately $853 million being paid for the spectrum (and returned to the Commonwealth consolidated revenue).

This spectrum is recognised internationally as a key band for 5G services and its timely release will facilitate the early delivery of next generation 5G services to the Australian public and industry.

The ACMA designed an auction process that aimed to maximise efficiency, competitive outcomes and the full utility of this spectrum for 5G and considered that these goals were reflected in the auction outcome.

Licences won at auction will commence in March 2020. In the interim, the successful bidders have the option to apply for early access licences.

Rights to access spectrum are developed and revised to respond to, and anticipate, changing user needs

Exemptions and licensing for agencies involved in safety and security

Drones

As drones become increasingly widespread, there are growing concerns about malicious drone use and the risks to public safety and national security. We made two exemption determinations to support the deployment of counter-drone security by law enforcement agencies:

• radiocommunications exemption arrangements for drone jamming devices at the Invictus Games—Radiocommunications (Invictus Games Anti-Drone Technology/RNSS Jamming Devices) Exemption Determination 2018
• radiocommunications exemption arrangements for drone jamming devices by the Australian Federal Police over a two-year period—Radiocommunications (Unmanned Aircraft and Unmanned Aircraft Systems) Exemption Determination 2019.

Mobile phone jamming

We made the Radiocommunications (Use by Corrective Services NSW of PMTS Jamming Devices at Lithgow Correctional Centre) Exemption Determination 2018 to support Corrective Services NSW prevent mobile phone usage by inmates, while also managing the risks that jamming devices pose to mobile carrier networks outside the correctional facility.

Body scanners

We made the Radiocommunications (Body Scanning – Aviation Security) Class Licence 2018 to authorise deployment of body scanners at international and domestic security-controlled airports. The licensing arrangements reflect the public benefit of security screening for aviation safety and the low interference potential of the devices.

Marine radio licence changes

We made changes to marine radio licences to enhance and protect safety-of-life and search and rescue services in Australia, through the Radiocommunications Maritime Omnibus Variation 2019. These changes include adding more VHF maritime mobile channels and implementing the following international obligations:

• access to new safety-of-life technologies such as the Automatic Identification System satellite, and the integrated functionality provided by the VHF Data Exchange system and Application Specific Messages
• specifying channels in the relevant licensing instruments to provide greater protection to search and rescue functions.

Viewer Access Satellite Television service

The Viewer Access Satellite Television (VAST) service provides an alternative reception option for viewers unable to receive adequate digital television services from terrestrial transmission sites.
In the reporting period, we:

• received and considered 131 complaints about permission to access services on VAST
• issued 131 directions to the scheme administrator to grant VAST access to the complainants.

Pricing and allocation mechanisms for spectrum access are transparent, take account of market developments and promote efficient use

Apparatus licence taxes

In July 2018, we introduced a new tax for PMTS Class B licences in the 3.6 GHz band. The new tax is part of the early access licence arrangements which will allow the successful bidders in the 3.6 GHz auction access to the band prior to the commencement of their spectrum licences.

In January 2019, we increased apparatus licence taxes by 2.1 per cent in line with movements in the consumer price index (with the exception of fixed services in bands below 960 MHz in remote density areas which have been subject to previous separate review processes). These were increased to preserve the value of licence taxes—and therefore the incentives toward efficient use of spectrum—against erosion by inflation.

We updated tax arrangements by removing the apparatus licence tax associated with body scanners at international airports, because those services are now authorised under a class licence with no taxes or charges.

We also removed the apparatus licence taxes for Public Mobile Telecommunications Service (PMTS) Class B licences in the 700 MHz band, which were used for early access to the 700 MHz band before spectrum licences took effect.

We will be reviewing all taxes as part of implementing the Spectrum Pricing Review.

Commercial broadcasting taxes

Commencing in September 2018, we assessed commercial broadcasting taxes in accordance with theCommercial Broadcasting (Tax) Act 2017and the Commercial Broadcasting (Tax) (Individual Transmitter Amounts) Determination 2017.

These new tax arrangements promote more efficient use of spectrum by assessing commercial broadcasters’ tax liability based on their spectrum use through higher transmitter licence taxes. These new taxes have replaced previous tax arrangements that included the total gross
earnings-based broadcasting licence fee and minimum transmitter licence taxes.

The ACMA is working with DoCA on how it will conduct the review of theCommercial Broadcasting (Tax) Act 2017. The report of the review must be provided to the Minister by
1 July 2021.

International satellite coordination services are effective and provided in accordance with ACMA procedures

We administered the ITU’s international process for managing satellite communication frequencies and met Australia’s obligations as a member state of the ITU in relation to satellite coordination matters through:

• assessing 999 ITU publications¹for proposed foreign satellite networks for compatibility with Australian services
• requesting further coordination (where necessary) with foreign administrations
• responding to requests from foreign administrations regarding coordination with Australian services.

Licence administration and allocation arrangements are efficient and meet published performance indicators

We allocated and renewed:

• radiocommunications licences, including apparatus, spectrum and class licences
• broadcasting licences, including temporary community broadcasting, community radio broadcasting, and commercial and community television licences
• telecommunications licences, including carrier licences and nominated carrier declarations.

We met our timeliness benchmarks with 90 per cent of licences allocated within 90 days:

• allocated—13,829 licences
• varied—3,493 licences
• renewed—144,777 licences.

AM to FM conversion

We facilitated the conversion of nine regional commercial radio services from AM to FM transmission. FM radio provides improved audio quality for listeners in regional areas and can be more cost-effective to operate than AM radio.

Improving coverage of radio services

We changed the technical specifications for six regional radio services to increase the reach of their service.

Other improvements we made include:

• May 2019—creating a new licence area, Merimbula RA1, to facilitate a new community radio broadcasting service
• October 2018—making spectrum available for the Queenstown commercial radio licensee to provide a second FM service in addition to 7XS
• October 2018—varying the technical specifications for a planned high-powered open narrowcasting service in the Hobart licence area plan to allow it to operate from a different site.

Spectrum for low-powered open narrowcasting services

In September 2018, we extended the availability of spectrum for low-power open narrowcasting services from 31 December 2020 to 31 December 2025. This commitment followed industry feedback that an early decision was needed to provide sufficient certainty of access to spectrum to facilitate forward business planning.

Digital radio

Canberra, Darwin and Hobart

In March 2019, we extended the availability of spectrum for the digital radio trials in Canberra and Darwin to 31 July 2019. This ensured continuity of service as preparations were made for these services to be permanently licensed under the relevant legislative arrangements.

In September 2018, we issued foundation category 1 digital radio multiplex transmitter licences for the Hobart RA1 and Darwin RA1 licence areas. The ACMA declared 1 April 2019 as the
digital radio start-up date for the Hobart RA1 licence area, and 7 May 2019 for the Darwin RA1 licence area.

In April 2019, we issued a foundation category 1 digital radio multiplex transmitter licence for the Canberra RA1 licence area. The digital radio start-up day is yet to be declared. In January 2019, we varied the Canberra digital radio channel plan in order to improve digital radio coverage in Canberra under the new foundation licence.

Mandurah

In May 2019, Mandurah, WA became the first area outside of the capital cities for which we have made a digital radio channel plan. In June 2019, we sought applications for the foundation category 1 digital radio multiplex transmitter licence in Mandurah.

Amateur radio operator examination services

We ensured that the operation of amateur radio stations continued to be appropriately authorised, including that amateur radio operators are appropriately qualified before we issue them with
a licence.

The Deed with the Wireless Institute of Australia (WIA), to deliver amateur radio examinations, issue certificates of proficiency and for related callsign management, expired on 1 February 2019. Following an open tender process, the University of Tasmania—through its institute, the Australian Maritime College (AMC)—was selected by the ACMA as the new provider.

During 2018–19, 531 amateur examinations were conducted. Table 1.11 shows the number of amateur certificates of proficiency issued, based on the results of these examinations, for the last two financial years.

We allocated 721 radio call signs.

Maritime radio certificates of proficiency and operator examinations

The AMC provides maritime radio operator certification and examination services on behalf of the ACMA. Table 1.12 shows activity levels for the last two calendar years.

Broadcasting licensing

In 2018–19, the ACMA:

• issued 35 transmitter licences for commercial radio and television services
• issued 41 broadcasting retransmission licences
• varied three radio and television apparatus licences
• issued 76 special-event broadcasting licences for radio and television services.

In measuring the ACMA’s performance against our KPIs for the allocation of apparatus
licences, broadcasting apparatus licences are counted with other radiocommunications apparatus licences.

Commercial radio broadcasting licences

During 2018–19, we renewed 47 commercial radio broadcasting licences for services using the broadcasting services bands (BSB). No new commercial radio broadcasting licences were allocated for services using the BSB during the reporting period.

As at 30 June 2019, there were 274 commercial radio broadcasting licences.

Commercial television broadcasting licences

During 2018–19, we renewed nine commercial television broadcasting licences. As at 30 June 2019, there were 69 commercial television broadcasting licences.

Community radio broadcasting licences

We assessed 56 applications to renew community radio broadcasting licences. All applications were approved, including four applications for remote or regional Indigenous broadcasting services. The ACMA issued 46 informal advice letters on ways to better satisfy the matters specified in legislation.

In October 2018, we advertised for applications for long-term community radio broadcasting licences in four licence areas—Gold Coast RA1, Maclean RA1, Mareeba RA1 and Perth RA1. During the reporting period we finalised our assessment and allocated three licences, with the assessment of Gold Coast RA1 to be completed by September 2019.

During the reporting period, we also assessed applications for the transfer of 18 community radio broadcasting licences from small Indigenous organisations to a Remote Indigenous Media Organisation (RIMO). All transfers were approved. As at 30 June 2019, there were 357 community radio broadcasting licences, 68 of which were remote Indigenous broadcasting services.

Temporary community broadcasting licences

Temporary community broadcasting licences are allocated for periods of up to 12 months. Subsequent licences may be allocated on application. During 2018–19, we allocated 104 temporary licences, of which four were allocated for new services in Coen (Qld), Windsor (NSW), Murwillumbah (NSW) and Mt Barker (SA).

Community television broadcasting licences and community television trial

There were five community television broadcasting licences at 30 June 2019—four remote Indigenous broadcasting services and one metropolitan service in Melbourne. The licences are due to expire on 30 June 2020, following an extension granted by the then Minister for Communications and the Arts in May 2018.

Following the Minister’s decision, we extended two community television trials in Adelaide and Perth to 30 June 2020.

2.3 Manage the risk of interference and other harms through investigation and other compliance and enforcement activities, and education programs

The efficiency and effectiveness of our compliance program for spectrum management is enhanced through prioritising and targeting our compliance activities. This is informed by evidence from complaints and audits, and a risk assessment of potential interference and other harms likely to adversely impact the legitimate use of the spectrum and public safety. Our annual review of our compliance priorities helps us to track any new or emerging issues.

Assessment of results

Annual priority compliance areas are developed, published and acted upon

On 5 April 2019, we announced a new set of agency-wide compliance priorities, including small cell base stations for 4G and 5G related to electromagnetic energy (EME) compliance
and deployment, and interference and licensing compliance related to solar inverters and
licensing integrity.

Interference management

We investigated complaints about interference to radiocommunications services and provided a diagnostic and advisory service in relation to television and radio reception interference (domestic systems interference). Table 1.13 provides a summary of interference complaints received and associated compliance and enforcement actions taken in response.

Priorities for interference management included:

• mobile repeaters—mobile phone repeaters were found to be the source of interference in 39 of the 350 radiocommunications interference complaints made to the ACMA over the period
• prohibited devices—mobile phone jammers and GPS jammers are prohibited from importation. The ACMA also supports law enforcement agencies with device testing and advice on the prosecution of matters where mobile phone jammers and GPS jammers are used in conjunction with other criminal matters. We conducted two escalated investigations into the use of illegal mobile phone and GPS jammers as a result of complaints from mobile network operators.

Awareness-raising

We ran paid advertising campaigns warning consumers about purchasing repeaters, jammers and non-compliant devices. In December 2018 we ran a campaign through online forums, including Google Ads, Facebook and Instagram, which targeted buyers in the lead-up
to Christmas.

Licensing integrity

We found systemic non-compliance issues with the radiocommunications licensing regime through an analysis of:

• interference complaints
• compliance investigation data
• trends observed through previous compliance programs (particularly the Gold Coast Commonwealth Games in 2017–18).

Following are the systemic issues we identified and the action we took.

Unlicensed legacy operations

Unlicensed legacy operations are where an operator continues to operate on a frequency during a 60 day grace period, when the licence can still be renewed after the licence has expired. We identified licensed entities at risk of unlicensed operations, resulting in 41 high-risk licensees being targeted and contacted. The outcome was that 557 licences were renewed, with over $739,000 in licensing fees being recovered to the Commonwealth.

Our field analysis comprised a program of monitoring and site audits, along with education and compliance action. Our inspectors monitored over 1,281 legacy sites and issued 32 warning notices for identified instances of non-compliance.

Unlicensed use of the 5.6 GHz band

We achieved a clearer understanding of radiocommunications activity in the 5.6 GHz band, particularly in those geographical areas where the ACMA proposes to make spectrum available for wireless internet service providers (WISPs). WISPs are currently operating in the 3.6 GHz band. This intelligence is being used to inform the design of a program of compliance and enforcement work which will continue into 2019–20.

Operation of low-powered devices on unlicensed frequencies

We monitored spectrum in the 400 MHz bands in Brisbane, Sydney and Melbourne and compared data from a similar activity in 2014–15. Non-compliance levels were found to have remained the same or decreased when compared to 2014–15 figures. This data is being used to inform this program of work which will continue into 2019–20.

Audit of EME compliance at small cell sites

Small cell sites have an important role in providing 5G mobile telecommunications. We responded to media reports of community concern about the use of this new technology by conducting a desk-based assessment of 967 sites and a formal audit of 30 sites. Overall the audit found high levels of knowledge about EME obligations and compliance with the obligations. This work will help inform our small cells compliance priority work in 2019–20.

Equipment standards and customer cabling

Table 1.14 provides a summary of compliance investigation and actions taken.

Strategic Priority 3: A regulatory framework that anticipates change in dynamic communications and media markets through monitoring our environment and influencing regulatory responses

3.1 Conduct qualitative and quantitative research to enhance the ACMA’s understanding of communications markets and consumer interests

Our research program is reviewed annually and developed in consultation with internal and external stakeholders so that it addresses relevant issues in our environment and aligns with the ACMA’s broader priorities.

The effectiveness of our research is reflected through its use in informing our work and enhancing the understanding of our stakeholders about trends and developments in the communications and media sector. The time frames published in our research program reflect our efficiency in delivering our research.

Assessment of results

Annual research program is developed in consultation with stakeholders and delivered as planned

The research program for July to December 2018 was published in July 2018. The program reflected consultations we undertook with DoCA and the ACCC. It also aligned with the ACMA’s broader priorities and focus areas. Our research program update for January to June 2019 was published in April 2019. The ACMA research program for 2019–20 will be released in the next reporting period.

The research that we delivered in 2018–19 informed our understanding of market trends, evolving communications and content use, and changes in consumer and community attitudes. It also assisted in identifying the implications of these issues for the effectiveness of our regulation. The research program was delivered in 2018–19 according to the individual timelines specified for each project.

Experience of consumers migrating to the NBN

In August 2018, the ACMA published quantitative research on the experience of households and small-to-medium sized businesses before, during and after migration to services delivered over the NBN.

This research informed new rules to address consumer issues with migrating to services delivered over the NBN.

Unsolicited calls in Australia—Consumer experience, December 2018

In December 2018, we published research focused on the incidence, type and management of unsolicited calls received by consumers to inform our:

• report to the then Minister for Communications and the Arts on industry self-regulation of commercial electronic messages, the DNCR and the IPND
• ongoing compliance, enforcement and education activities.

Unsolicited Communications Research—A Study of International Best Practice, December 2018

We commissioned the Unsolicited Communications Research—A Study of International Best Practice to enhance understanding about the approaches of international jurisdictions to managing unsolicited communications.

Monitoring implementation of broadcasting and online gambling advertising rules

In 2018–19, we commenced a 12-month program of quantitative and qualitative research to monitor the effectiveness of the new gambling advertising restrictions during live sports events broadcast on television and radio, and streamed online.

We are researching audience awareness, behaviours and attitudes in relation to the new rules and exposure to gambling advertising, particularly as it impacts children. Sources of data include the complaints and enquiries that we receive and gambling advertising placement data across broadcasting and online content. This research is expected to be published in late 2019.

Telecommunications consumer research

We are currently researching the experience of households and businesses across the full range of telecommunications services in the Australian market to continue to build our evidence-base of emerging risks and harms, and the effectiveness of existing regulations. This consumer research will assist with understanding consumers’ expectations, experience and use of telecommunications (voice and internet) services.

News project

In 2018–19, we commenced an exploration of emerging issues in news on television and radio, including commercial influence, impartiality, diversity of sources and localism. This involved a literature review and scoping study and commissioning survey questions on consumer experiences and concerns. We will also be commissioning qualitative focus group research. Results will be published in the next reporting period.

Annual Consumer Survey and Customer Service Centre Survey

Fieldwork for both our Annual Consumer Survey and Customer Service Centre Survey was completed in June 2019.

The Communications report 2017–18

The Communications report 2017–18 was tabled in Parliament and published on
15 February 2019, incorporating findings from the ACMA Annual Consumer Survey.

3.2 Build ACMA capability for data analysis to enable improved understanding of regulatory and market developments

Data is a key resource for improving our effectiveness and efficiency as a regulator. Our project to build the necessary data capabilities within the ACMA extends over a number of years. We have developed a governance framework to support the effective and efficient delivery of this project and made provisions to access necessary external expertise to assist the data capability and analytics project team.

Assessment of results

Data collection, maintenance and analysis capacity plan is developed

In 2018–19, we achieved a number of milestones, including scoping the broader work program to build our capability to make optimal and safe use of information to inform evidence-based regulatory analysis and action. The following milestones that we achieved provide the basis for finalising the strategy and roadmap of the plan:

• established a Data and Analytics section and a plan to build data capability across the ACMA
• engaged a Microsoft Power Business Intelligence (BI) specialist to build internal capability to use Microsoft Power BI for data visualisation and reporting
• completed a Microsoft Power BI report to visualise data on trends in mobile-only usage
• commissioned an external consultancy for the Data and Analytics Project to develop an agency-wide data strategy and data management framework.
• established a project board and reference group to provide governance for the Data and Analytics Project
• conducted workshops and interviews with internal stakeholders as part of the maturity and needs assessment for the Data and Analytics Project
• participated in the broader government Data Champions Network and Data Inventory
• Working Group.

The Data and Analytics section work program extends to June 2020 and covers the
following stages:

• maturity assessment
• needs assessment
• data inventory
• data strategy
• data governance and management framework.

The work program to build our data analytics capability will continue into 2019–20. For this reason, we have assessed our performance as mostly met against this performance criteria. We expect to fully meet the criteria by the end of 2020.

3.3 Engage with stakeholders and government to ensure regulatory frameworks and obligations are fit-for-purpose now, and as markets evolve

The dynamism of the communications and media environment is placing pressure on our regulatory frameworks. Our effectiveness in responding to new and emerging issues is being supported by a new Regulatory Futures section, established this year to engage with stakeholders and research regulatory approaches and responses within our changing environment.

The effectiveness of our engagement is reflected in our openness to the views, ideas and experiences of our stakeholders to inform our work and the quality of our contributions to broader debates about issues relevant to our remit.

Measures to support the efficiency of this engagement include the use of diverse channels to seek and provide input, as well as targeting and prioritising the issues that we engage on in response to changes in our environment.

Assessment of results

Annual Regulatory Futures work program is developed and implemented in consultation with government and stakeholders

One of the ACMA’s key objectives is to build stronger links within government and industry to assist us to manage the challenges of disruptive technologies in communications and media markets.

In November 2018, we established a new Regulatory Futures section to provide a stronger focus on emerging technologies and regulatory pressure points and to inform thinking about regulatory issues, including best practice regulatory approaches and their application.

In addition to our regular engagement with DoCA and the ACCC on our research, we consulted on particular elements of the regulatory futures work program, including:

• Outcomes-based regulation—we engaged with the Department of Infrastructure, Regional Development and Cities, Ofcom, the Australian Securities and Investments Commission, the Civil Aviation Safety Authority, the NSW Department of Finance and the Department of Treasury.
• Internet of Things (IoT)—we engaged with the Department of Home Affairs, NSW Department of Finance, DoCA, National Transport Commission, IoTAA and Standards Australia.

Activities undertaken to implement the work program in 2018–19 included:

• conducting preliminary desktop research into artificial intelligence (AI) to map the touchpoints between AI and the public interest objectives supported by the communications and media regulatory framework
• procurement of market data and analysis services to assist the ACMA monitor our regulatory environment by tracking market changes and the potential impact on our regulatory frameworks
• commencing work on the news project to explore international approaches to regulation across comparable jurisdictions
• implementation of the International engagement strategy 2019–21 and the new international forward engagement program in December 2018
• research commenced to analyse the ACMA’s touchpoints and the intersection of its regulatory remit with IoT to inform the ACMA’s regulatory approach to IoT
• establishment of the cross-agency Regulatory Futures Network in March 2019 to build collaboration and staff capacity on regulatory strategy and best practice.

Unsolicited communications research
Case study

Australia’s unsolicited communications regulatory schemes were enacted in 2003 and 2006—just before the first smartphone came on the market in 2007.Unsolicited Communications Research—A Study of International Best Practice(the study) was commissioned as part of our examination of regulatory arrangements for unsolicited communications.

The study examined the unsolicited communications management practices of seven jurisdictions—the United States of America, United Kingdom, Canada, Singapore, Japan, France and Germany. While the study showed a clear global trend towards tougher enforcement and tighter regulations, many jurisdictions are also leveraging the help of industry to monitor compliance and develop technical solutions to unsolicited communications issues.

This study highlights the importance of the ACMA’s research program in informing our regulatory responses to consumer harms as technologies and markets evolve.

ACMA engagement with spectrum reform helps to shape improved statutory frameworks

We continued to provide advice to government and engage with industry on the drafting of the Radiocommunications Bill and related taxation and transition bills, including:

• working with DoCA on improvements to the spectrum regulatory arrangements
• implementing the recommendations of the government’s Spectrum Pricing Review.

We also considered compliance and enforcement tools available to the ACMA and provided advice to government on the potential for a range of new tools, including civil penalties and interim and permanent bans and recalls, to better ensure the efficient and effective management of interference.

The ACMA is actively pursuing other improvements to spectrum management that can be achieved in the shorter term and without legislative change, which we consulted industry on in the draft Five-year spectrum outlook 2019–23, including:

• releasing a consultation paper in June 2019 on a proposal to develop two new licence types (transmitter and receiver) suitable for authorising ‘area-wide’ multi-device deployments. These are referred to collectively as the area-wide apparatus licence (AWL) type and would be more flexible than existing apparatus licence types
• reforming arrangements for amateur qualifications through providing an additional means
• for qualification
• further review of non-assigned licences with a view to reform.

Consultations, stakeholder forums and working groups are used to gather evidence and inform rule-making

Consultations

In addition to completing the seven consultations commenced in 2017–18, we undertook 43 consultations and received 335 submissions. These consultations covered the following issues.

Spectrum:

• radiocommunications standards, licence conditions and determinations
• spectrum planning
• FYSO work program
• licence area plans (LAP)
• taxes and charges
• licensing.

The future delivery of radio services in Australia:

• how technologies and changes in listener behaviour are affecting the delivery of radio services in different ways across metropolitan, regional and remote areas.

Content:

• new rules to restrict gambling advertising during live-streamed sport
• creating the Broadcasting Services (Australian Content in Advertising) Standard 2018 following the sunsetting of the previous standard.

Telecommunications:

• standards and determinations
• exemptions
• customer cabling
• consumer protections.

Stakeholder forums and working groups

During 2018–19, we arranged and/or participated in a number of stakeholder forums and working groups.

RadComms 2018

The spectrum outlook and work program priorities were further discussed with stakeholders at our RadComms 2018 conference, held in October 2018. Stakeholders included industry body representatives, government departments and licensees. Feedback on the program priorities and the ACMA’s process of work program development has informed our approach to developing the 2019–2023 FYSO.

Review of the Telecommunications Consumer Protections (TCP) Code

Communications Alliance (CA) began a review of the TCP Code in August 2017. The ACMA was an observer on the working committee established to review the code. On 28 June 2019 the Authority agreed to register the revised code, and it was registered on 1 July 2019. The code provides safeguards for consumers of telecommunications services and products and addresses issues including information provided to consumers, advertising, selling practices, customer contracts, customer service, credit and debt management, billing, and changing suppliers.

Mobile Premium Services Code

The ACMA participated as an observer on the working group convened by Communications Alliance to amend the Mobile Premium Services Code to extend protections to direct carrier billing. The revised code is expected to be submitted to the ACMA for registration in the next reporting period. The code has protections for consumers using mobile premium services in the areas of purchasing, billing information and complaints-handling.

Consumer Consultative Forum

The Consumer Consultative Forum is a formal advisory committee that provides advice to the ACMA on telecommunications issues that affect consumers. The committee is chaired by an Authority Member, with James Cameron to September 2018, and Fiona Cameron from September 2018 to June 2019.

In September 2018, we appointed new consumer representatives. See Appendix 1.

Consumer representatives joined regulators and industry bodies at two meetings—in November 2018 and March 2019—to discuss topics including:

• the review of the TCP Code
• the review of the ESC Determination
• 5G
• privacy and data security.

Telecommunications (Emergency Call Service) Determination 2009 (ECS Determination)

We engaged with DoCA and key industry stakeholders on a review of the ECS Determination to determine whether, in light of technological, environmental and other changes, the determination remains relevant and effective in contemporary Australia, or if changes should be made to better provide assurance of community protections related to the emergency call service.

New online content rules for gambling advertising

Implementation of the new gambling advertising rules for online services followed two rounds of public consultation to ensure that the rules would be practical and not unduly burdensome. Changes were made to the proposed rules following the first round of consultation, to reduce record-keeping requirements and to exempt licensed Australian gambling operators from the rules, as this class of service provider is already subject to strict age-restriction requirements under other legislation.

Subscription television code of practice

On 3 December 2018, the Australian Subscription Television and Radio Association (ASTRA) commenced a public consultation on a new draft subscription television code of practice. The ACMA appointed a sub-group of its Authority members, James Cameron and Anita Jacoby, to lead negotiations with ASTRA on its draft code prior to registration.

Scam Technology Project

We established a reference group chaired by Fiona Cameron and with representatives from the ACCC and the Australian Cyber Security Centre to assist with the Scam Technology Project (the project). The project recognises that ongoing work across government and industry is required to reduce the impact of scam calls. DoCA is an observer on the group.

In March 2019, we releasedCombating scams—A discussion paper on technological solutionsfor public consultation. Nineteen submissions were received.

During April–May 2019, we conducted extensive consultation with key stakeholders, including telecommunications and tech companies, government agencies and organisations representing the interests of consumers. We will report the project findings to the Minister by December 2019.

Fraudulent mobile number porting

We actively engaged with mobile carriers on developing solutions to address mobile number fraud. This typically occurs when a customer’s personal information is stolen and used to transfer a mobile phone number without their consent. The mobile number can then be used to receive SMS verification codes, allowing criminals to gain access to bank accounts and other services. If an industry solution is not forthcoming, the ACMA will examine further regulatory measures to address this problem.

Authoritative advice is provided to reviews of media and communications regulatory frameworks including the Consumer Safeguards Review

2018 Regional Telecommunications Review

Our submission to the Regional Telecommunications Review reflected the ACMA’s focus on adequate safeguards to protect consumers migrating to services delivered over the NBN.

DoCA’s Consumer Safeguards Review: Part A—redress and complaints handling and Part B—reliability of communications services

Our submissions to the Consumer Safeguards Review (Parts A and B) in August 2018 and January 2019 balanced the need for updates to the current safeguards framework with how the current framework operates. Our submission to Part A of the review addressed the need for a single body to escalate complaints to, as well as improvements to the TIO scheme. Our submission to Part B of the review supported modernising consumer safeguards while recognising the appropriateness of direct regulation to address certain public interest objectives.

ACCC Wholesale Service Standards Inquiry—Phase 2

In February 2019, we made a submission to the ACCC’s Wholesale Service Standards Inquiry— Phase 2, emphasising the importance of accountability across the NBN supply chain and the alignment of wholesale and retail regulatory requirements to support good consumer outcomes.

ACCC Internet Activity Record Keeping Rule

In September 2018, our submission on the ACCC’s proposed Internet Activity—Record Keeping Rule (Internet Activity RKR) focused on how the Internet Activity RKR might address the gap in internet activity data as a result of the Australian Bureau of Statistics discontinuing the Internet Activity Survey.

ACCC Digital Platforms Inquiry

Our submission on the ACCC’s preliminary report on its Digital Platforms Inquiry set out principles for broad reform of media and communications regulation. We have since participated in ACCC roundtables to inform the inquiry, including the future of journalism roundtable on 15 March 2019 and a stakeholder forum on 18 March 2019. We also engaged directly with the ACCC on the development of relevant sections of its final report.

Interactive gambling

In August 2018, we made a submission to the Senate Environment and Communications References Committee inquiry into gaming micro-transactions for chance-based items (so-called ‘loot boxes’).

Report to the Minister on regulation of unsolicited communications

The ACMA’sReport on industry self-regulation of commercial electronic messages, the Do Not Call Register and the Integrated Public Number Databasewas released on 18 December 2018. This report responded toRecommendation 6 of the Review of the Australian Communications and Media Authority—final report.

Accessibility of Payphones Industry Guideline

In May 2019, we made a submission to the Communications Alliance on itsAccessibility of Payphones Industry Guideline G630:2006.

Review of the Enhancing Online Safety Act 2015

On 6 August 2018, we made a submission to the reviews of the EOS Act and Online Content Scheme under schedules 5 and 7 to the BSA. Our submission noted that the arrangements, including the provision of a dedicated statutory eSafety Commissioner, have increased public visibility and focus in relation to online safety.

3.4 Improve regulatory practices to reduce regulatory burden, increase transparency and timeliness, and ensure actions are proportionate to risks

We use a customer survey and the government’s Regulator Performance Framework (RPF) to assess the effectiveness and efficiency of our regulatory practices. These assessments are undertaken annually and the results inform improvements in the delivery of our regulation for both regulated entities and consumers and audiences.

Assessment of results

Annual customer service user satisfaction survey is undertaken to guide improvements to services for stakeholder interaction with the ACMA

Customer Service Centre

While our single-point-of-contact CSC meets its response time frames, we recognise the need to continually improve and respond to evolving customer requirements.

In February 2019, Woolcott Research & Engagement was selected from a limited tender process to conduct customer satisfaction research to evaluate the performance of the CSC. The survey was drawn from customers who had contacted the CSC in the previous six months. We found that at 77 per cent, overall satisfaction levels were above last year’s (72 per cent) and in 2015–16 (70 per cent).

We are using the survey results as an input into our annual continuous improvement program for CSC services. For example, the need to redevelop the ACMA’s website—work currently underway—was a finding from the survey.

Annual Regulator Performance Framework self-assessment with stakeholder validation is undertaken to inform our better regulatory practice initiative

In December 2018, we published our third annual self-assessment under the government’s Regulator Performance Framework (RPF) for the period 2017–18.

We assessed our 2017–18 performance and found that we met or mostly met the six key performance indicators (KPIs) related to the efficiency and effectiveness of common regulatory activities. In October 2018, we invited feedback from key industry and consumer representatives on these findings, and there was general agreement with our assessment.

Highlights included:

• target time frames being met for radiocommunications, interactive gambling, spam, DNCR, broadcasting and telecommunications investigations
• improvements in completion time frames for DNCR and spam investigations by 50 per cent and 53 per cent respectively
• new quarterly reporting of compliance and enforcement actions for unsolicited communications
• stakeholder engagement through 48 public consultations, 201 targeted e-bulletins and 40 media releases.

In April 2019, we implemented measures to enhance transparency, timeliness and clarity of Authority decision-making with the publication of an updatedCode of Conduct for Authority members and associate members. The code of conduct sets out the Authority’s strategic intent, approach to business, duties, responsibilities and culture and values guiding its work. Under the code of conduct, Authority members have more defined roles in relation to actively engaging with our stakeholders, including ‘leading’ an area of the ACMA’s work and chairing internal committees aligned with their relevant skills and expertise:

• Content Committee—Creina Chapman
• Telecommunications and Consumer Committee—Fiona Cameron
• Spectrum Committee—James Cameron
• Compliance and Enforcement Committee—Chris Jose.

More frequent meetings of the Authority also assisted with improved timeliness of
decision-making.

In addition, in April 2019, we streamlined our compliance priority process by developing and announcing whole-of-agency compliance priorities for 2019–20. Taking an ACMA-wide approach should deliver greater clarity and guidance to industry about our compliance work.

Financial performance

The ACMA’s 2018–19 financial statements are provided in Appendix 16 of this report.

Activities administered on behalf of government

The ACMA collected revenue of $691.441 million on behalf of government in 2018–19. This was primarily made up of:

• Telecommunications Industry Levy (TIL) ($253.887 million)
• Radiocommunications taxes (apparatus licence tax of $231.146 million)
• Broadcasting apparatus licence taxes (commercial broadcasting tax of $104.595 million)
• Telecommunication numbering charges ($60.000 million)
• Annual Carrier Licence Charge (ACLC) ($31.259 million).

Revenue in 2017–18 was $3.608 billion, which included $3.078 billion in proceeds from the sale of 700 MHz and 3.4 GHz spectrum.

Further details on these revenue items are provided in the ‘Management and accountability—Revenue collection’ section of this report.

The ACMA’s administered expenses totalled $13.788 million and comprised primarily of supplier costs ($6.833 million, 50 per cent of the total) and grant expenditure relating to the Innovation Fund.

As at 30 June 2019, the ACMA held $566.021 million in administered assets, primarily related to accrued revenue for the sale of spectrum. The ACMA also held $108.904 million in administered liabilities.

Departmental activities

The ACMA reported a technical operating deficit of $12.331 million. After adjusting for unfunded depreciation and amortisation expenses and changes to the asset revaluation surplus, the ACMA recorded an operating deficit of $0.407 million. This was driven by the pre-sale revaluation of the ACMA’s property at Capalaba in Queensland.

Departmental expenses totalled $103.008 million, primarily made up of staffing and supplier expenditure. Departmental income totalled $0.905 million and mainly comprised of sale of goods, rendering of services, resources received free of charge and gains on assets.

As at 30 June 2019, the ACMA had a positive net asset position of $37.710 million. Assets totalled $66.287 million. Liabilities totalled $28.577 million, including employee provisions, supplier accruals and lease liabilities.

Table 1.15: Departmental finance analysis