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Section 1 - Overview
Secretary's review
In 2009-10, the Department put substantial effort and resourcing into Government priority reforms designed to deliver fast broadband services nation-wide; restructure radio spectrum for a wide variety of consumer services; create additional spectrum opportunities by introducing digital television in a staged rollout; and improve publicly-funded telecommunications services to regional Australia.
The Department also carried forward an intensive regulatory reform task, led by major reform proposals to competition policy in the telecommunications sector.
National Broadband Network
The National Broadband Network initiative is intended to transform the infrastructure of our telecommunications sector and help position Australia at the forefront of nations adopting twenty-first century information and communication technologies. The National Broadband Network is a public investment project to be delivered via the portfolio business, NBN Co.
We made significant progress towards delivering the National Broadband Network in 2009-10. Some of the highlights included:
- establishing NBN Co and selecting a Board and CEO
- completing and supporting the release by the Government of a comprehensive Implementation Study, demonstrating the viability of the network
- drafting and introducing supporting legislation
- providing $302 million in equity contributions
- supporting the early rollout of services in Tasmania
- managing construction of new fibre backhaul transmission links under the Regional Backbone Blackspots Program to eliminate many monopoly routes and upgrade service quality in key regional and rural areas
- providing Australians with information on the potential uses and benefits of high speed broadband, including an effective communications program and holding community forums in locations across Australia.
The Government's commitment to a wholesale-only model for the National Broadband Network will deliver structural reform in the industry in the longer term. It remains essential, however, to ensure that during the transition to the National Broadband Network over an extended period, the existing regulatory regime is improved and promotes the interest of consumers and businesses. This led to the introduction of a comprehensive legislative reform package on 15 September 2009 to drive future growth, productivity and innovation across all sectors of the economy by improving competition and strengthening consumer safeguards.
A major objective of the reforms was to address Telstra's level of integration, while also providing it with the flexibility to choose its future path. In particular, the Telecommunications Legislation Amendment (Competition and Consumer Safeguards) Bill 2009 was structured to address Telstra's incentives to discriminate against its wholesale customers by requiring Telstra to functionally separate, unless it voluntarily structurally separates.
Promoting the digital economy
In anticipation of the National Broadband Network, the Australian Government hosted the Realising Our Broadband Future forum on 10 and 11 December 2009, which engaged Australian and international experts and thought leaders to map out the business models, applications and services that will thrive in our high speed broadband future.
The ideas generated at the forum are contributing to broader policy development work across the Government. One of the key messages of the forum was that more needed to be done to promote the opportunities of the National Broadband Network to all Australians, businesses and the community sector. Work on this has commenced through a national communications program as part of the National Broadband Network initiative, including advertising, a website and community forums.
The Department's Digital Regions Initiative aims to drive engagement with the digital economy in the areas of health, education and emergency services. A first round of grants worth $32.9 million was allocated in December 2009. Further to the Digital Regions Initiative, as at 30 June 2010, 50 of the 52 projects under Clever Networks had been successfully delivered with the remaining two expected to be completed by the end of the calendar year. All projects have a sustainability commitment and are well positioned to expand services and coverage under the National Broadband Network.
Broadband and communications in regional Australia
The Department continued to improve access to telecommunications for Australians living in remote Indigenous communities, so they can take advantage of the economic, educational, social and cultural opportunities offered by the digital economy. An additional 63 fixed community phones and 25 mobile satellite handsets were installed in remote Indigenous communities and improved availability of public internet access facilities provided in 46 remote Indigenous communities, through our Indigenous Communications Program.
The Department finalised the process for construction of new fibre transmission links under the Regional Backbone Blackspots Program to improve competitiveness and service quality in key regional and rural areas. The Government is working closely with Nextgen Networks, the successful tenderer, with more than 1100 km of optical fibre backbone deployed by 30 June 2010.
On 10 May 2010, the Government announced significant changes to the Australian Broadband Guarantee program including doubling of speeds and data allowances for remote consumers and enhanced equipment warranties and testing regimes. At the same time, the target population for Australian Broadband Guarantee supported satellite broadband services was reduced from around 475 000 to around 160 000 households, as commercial services expand successfully in previously poorly-served areas.
Switchover to digital television
Following an extensive communications and public engagement campaign, the Mildura/Sunraysia region of Victoria made broadcasting history at 9 am on 30 June 2010 when the analog TV signals were switched off, making it the first region in Australia to switchover to digital television.
The Digital Switchover Taskforce and a full-time Digital Switchover Liaison Officer based in Mildura worked closely with local community groups and organisations to raise awareness about the switchover. Through the Digital Ready labelling scheme, the Endorsed Antenna Installer Scheme and the Digital Advisor program in retail stores, consumers were directed towards reliable sources of advice and assistance for the digital switchover.
Approximately 2650 households in Mildura/Sunraysia were helped to convert to digital TV through the Household Assistance Scheme.
During the course of 2009–10, the Department actively worked through a number of options with broadcasters, and developed a new satellite TV service for hundreds of thousands of remote and regional Australians who receive inadequate services under current broadcasting arrangements; and who may not see self-help re-broadcast facilities upgraded in the future.
The Viewer Access Satellite Television (VAST) service is a significant step in providing access to digital television for people living in regional Australia, and provides 16 channels—including multiple regional news services—in the largest single broadcasting policy step to address regional disadvantage since the advent of television.
Realising the digital dividend
The digital dividend, that is, the spectrum that will be freed up by the switch-off of analog television, is the 'waterfront property' of the spectrum world due to its superior propagation characteristics, and presents a once-in-a-generation opportunity to encourage the introduction of new communications services and to improve existing services. Digital dividend spectrum re-allocation in Australia is part of a world-wide trend toward switching to digital-only broadcasting, with consequent release of freed-up spectrum for a variety of next-generation communications services, not least of which is burgeoning demand for broadband mobile services.
On 5 January 2010, the Government released its Digital Dividend Green Paper. The Green Paper sought public comments on potential uses of the digital dividend, the potential benefits of these uses to the Australian community and economy, and the costs involved in releasing a contiguous block of spectrum by restacking broadcasting services.
On 24 June 2010, the Minister announced the Government's decision to release 126 MHz of contiguous spectrum in the Ultra-High Frequency (UHF) band, comprising the frequency range 694-820 MHz as Australia's digital dividend. Internationally, this is one of the largest contiguous UHF dividends to date and represents a significant achievement. The Department is working with the Australian Communications and Media Authority (ACMA) and other stakeholders on this complex and multi-faceted task.
Consumer issues
The Department has supported the Australian Communications Consumer Action Network (ACCAN), following its establishment as the peak communications consumer body on 1 July 2009. ACCAN has established itself as an effective voice for consumer concerns and rights, and a partner with industry and government in consideration of consumer issues.
We also undertook significant work to support the Government's review of the anti-siphoning scheme conducted in the second half of 2009, which was required by legislation.
The Department worked with the Australian Competition and Consumer Commission and sporting and media organisations, to develop the Code of Practice for Sports News Reporting. The first of its kind in the world, this Code sets out guidelines for the rights and obligations of sporting and media organisations when reporting news from sporting venues.
The Department held the annual Cyber Security Awareness Week from 6-11 June 2010, partnering with over 130 public and private organisations. The budd:e education package is a key component of the Australian Government's commitment to raising the cyber security awareness among school-age children. The package recently won an Australian Interactive Media Industry Association award for best interactive media and digital content designed for children.
We also worked in partnership with the Internet Industry Association to develop a new ISP Cyber Security Code of Practice, which will provide a consistent approach for Australian ISPs to help inform, educate and protect their customers when they are found to have compromised computers. The Code, launched on 6 June 2010, is a leading example of government working with ISPs and is attracting great interest from other countries.
We continued work to contribute to implementation of the Australian Government's Cyber-Safety Plans for individuals and families:
- The Consultative Working Group provided cyber-safety advice to the Government.
- The Youth Advisory Group provided advice on cyber-bullying, mobile phone safety, privacy, social networking sites and online computer games from the perspective of young people. This advice led to the Government announcing the Cyber-safety Help Button.
Financial results
The Department had a sound result, with the net cost of services for 2009-10 being $148.1 million, resulting in a moderate operating surplus of $5.7 million. This surplus was related to lower than anticipated costs associated with the implementation of the Government's National Broadband Network initiative. For Administered items, the outcome was total expenditure of $220.0 million, $19.7 million below budget, reflecting, in the main, lower than anticipated expenses in the Digital Television Switchover program. A more detailed analysis of financial performance is contained in the performance review section of this report.
Support within the Department
This year has been demanding for our corporate areas and they have worked hard to aid the significant work carried out by the Department. A few examples of our corporate teams working together to enable and support the core work of the Department include:
- management of our push to better utilise Web 2.0 technologies
- negotiation of a new Enterprise Agreement
- implementation of a streamlined risk management and reporting framework
- upgrading of our financial, human resource and ministerial correspondence systems
- working to rationalise our accommodation arrangements
- commencing the rollout of a new Information Management System for the Department
- provision of legal advice in support of a range of programs and key projects.
Our people also found the time and energy to support a range of great causes throughout the year. We have baked cupcakes and walked some excitable canines to raise money for the RSPCA, provided Christmas gifts to children in need through the Barnados Giving Tree, grown some impressive moustaches for 'Movember' to raise awareness of men's health issues, eaten pies and hot dogs to raise money for two walkers for the Canberra Hospital's Cancer Ward, donated blood to the Australian Red Cross in the Corporate and Divisional Blood Challenge and held the Biggest Morning Tea to raise funds for the Cancer Council.
We aim to continue and improve on this level of support and social consciousness in the coming year.
Looking forward
The Department faces a number of challenges in 2010-11.
Our budgetary position requires constant vigilance, as a small agency managing complex projects and sensitive programs, with high stakeholder and compliance expectations and little budget flexibility.
On the policy outlook, converging technologies continue to drive demand for a reshaping of regulation in the telecommunications and broadcasting sectors. Our aim is to provide a future framework for a more competitive communications market and simpler regulatory structure that is much less mode-specific.
Our role in implementing key projects such as the National Broadband Network, establishment of the USO Co., the switchover to digital television, realising the digital dividend and promoting the digital economy will change the nature of the communications and entertainment markets and offer immense potential investment opportunities to both public and private sector service providers.
We are implementing Web 2.0 technologies, such as generic blogging, online discussion forums and wiki software, which provide an exciting additional platform for collaborative and consultative online engagement. Our aim is to use the new opportunities presented by Web 2.0 technologies to better enable contributions to be made to discussion and strategic thinking on key areas of policy by citizens and stakeholders. In July 2010, we launched an interactive map on our website to help citizens find out what services the Department and its agencies are delivering in their area; where to get more information about a service and, in some instances, apply for a service online.
2010-11 is likely to demonstrate clearly that we live in interesting times.
Peter Harris
Secretary
Departmental overview
The objective of the Department of Broadband, Communications and the Digital Economy is to develop vibrant, sustainable and internationally competitive communications and entertainment sectors of the Australian economy.
The Department achieves its purpose through policy and regulatory development, advice and program delivery activities that:
- support efficient and strategic management of public resources
- facilitate the reliable and competitive provision of services
- provide effective protection for the interests of consumers.
Through these activities, the Department supports and encourages the development of world class communications infrastructure.
The key objectives of each of the Department's three programs are:
- Infrastructure: to facilitate the increased availability of fast, affordable and reliable broadband and communications infrastructure across Australia.
- Digital Economy and Services: to support all Australians to safely and securely realise the full potential of the digital economy and ensure the availability and reliability to consumers and businesses of reasonably priced basic and essential communications services.
- Broadcasting and Digital Switchover: to ensure the smooth switchover to digital only television by the end of 2013 and support access to high quality, innovative and diverse broadcasting services that deliver content consistent with Australia's diverse community expectations.
The Department's commitment to the APS Values and Code of Conduct, and achieving the standards of service set out in its Service Charter, underpins its approach to pursuing its program objectives and outcome in the public interest.
Ministerial arrangements
Senator the Hon. Stephen Conroy served as Minister for Broadband, Communications and the Digital Economy throughout 2009-10.
Portfolio structure
Figure 1.1 Portfolio agencies as at 30 June 2010
| Australia Post Australia Post is a Government Business Enterprise, fully owned by the Commonwealth Government. It provides high quality mail and delivery services to all Australians and a range of parcel and logistics services. Website www.auspost.com.au Tel 03 9204 7171 Fax 03 9663 1160 |
| Australian Broadcasting Corporation (ABC) The ABC is a national broadcaster. It contributes to and reflects Australia's national identity, fosters creativity and the arts and encourages cultural diversity. The ABC is an integral part of the radio, television and online production industries and the news and information media. Website www.abc.net.au Tel 02 8333 1500 Fax 02 8333 5344 |
| Australian Communications and Media Authority (ACMA) The ACMA is responsible for regulating broadcasting, radio communications, telecommunications and online content in accordance with legislation. The ACMA works with all stakeholders to maximise the public benefit, including the extent to which the regulatory framework addresses the broad concerns of the community, meets the needs of industry, and maintains community and national interest safeguards. Website www.acma.gov.au Canberra: Tel 02 6219 5555 Fax 02 6219 5353 Melbourne: Tel 03 9963 6800 Fax 03 9963 6899 Sydney: Tel 02 9334 7700 Fax 02 9334 7799 |
| NBN Co Limited (ACN: 136 533 741) The Government has established NBN Co Limited as a fully Commonwealth owned Government Business Enterprise (GBE) to design, build and operate the new National Broadband Network. The National Broadband Network is an Australian Government initiative which will deliver high speed broadband to all Australians. The National Broadband Network will involve the laying of fibre optic cabling to at least 90 per cent of Australian homes, schools and businesses, capable of delivering speeds of 100 megabits per second. The remaining premises will be connected via a combination of next generation high speed wireless and satellite technologies delivering broadband speeds of 12 megabits per second or more. Website www.nbnco.com Tel 02 9926 1900 Fax 02 9926 1901 |
| Special Broadcasting Service Corporation (SBS) The SBS is a national broadcaster. It provides multicultural and multilingual services that inform, educate and entertain all Australians. Its mission is to contribute to a more cohesive, equitable and harmonious Australia through its television, radio and online services. Website www.sbs.com.au Tel 02 9430 2828 Fax 02 9430 3700 |
Figure 1.2 Department of Broadband, Communications and the Digital Economy Organisation Chart as at 30 June 2010
 |
Department structure, functions and services
Throughout 2009-10, the Department was led by Peter Harris, Secretary of the Department.
The Department is organised into three program groups, a legal services group and a finance group. The three program groups are Infrastructure, Digital Economy and Services and Broadcasting and Digital Switchover. The role of each group and its key personnel are outlined below.
Infrastructure
The Infrastructure Group is responsible for implementing the National Broadband Network and associated regulatory reform. In 2009-10, it provided advice on telecommunications infrastructure, spectrum management and related matters.
Daryl Quinlivan is the Deputy Secretary, Infrastructure. Colin Lyons was the Deputy Secretary, Infrastructure until 1 March 2010. First Assistant Secretaries within the group are:
- Marianne Cullen—National Broadband Network Implementation
- Pip Spence—Networks Policy and Regulation
Digital economy and services
The Digital Economy and Services Group is responsible for advice on telecommunications and online services, consumer issues and postal services. It has responsibility for issues associated with the development of the digital economy, convergence, digital innovation as well as cyber-safety and cyber security. In 2009-10, it delivered a range of programs including the Australian Broadband Guarantee, the Satellite Phone Subsidy Scheme, Indigenous Communications, Clever Networks and the Digital Regions Initiative. This Group includes the Corporate and Business Division.
Abul Rizvi is the Deputy Secretary, Digital Economy and Services. First Assistant Secretaries within the group are:
- Richard Windeyer—Digital Economy Strategy
- Keith Besgrove—Digital Economy Services
- Richard Oliver—Corporate and Business
Broadcasting and digital switchover
The Broadcasting and Digital Switchover Group is responsible for broadcasting and digital television matters and provides advice relating to the national broadcasters as well as community and commercial broadcasting. The Digital Switchover Taskforce, which forms part of this group, manages the switchover to digital television.
Andy Townend is the Deputy Secretary, Broadcasting and Digital Switchover and Executive Director of the Digital Switchover Taskforce. The group has one First Assistant Secretary:
- Simon Pelling—Broadcasting and Digital Switchover
Legal services
Legal Services is responsible for: assisting the Minister and the Secretary to protect the legal interests of the Commonwealth relevant to the portfolio; providing and procuring legal services; coordinating the portfolio's legislative program; facilitating external scrutiny and coordinating the portfolio's contribution to the Government's deregulation agenda.
Don Markus is the General Counsel.
Finance
Finance is responsible for: coordination of the Department's Portfolio Budget Submission and Statements and Additional Estimates Statements; internal budget allocations; accounting and financial policy, procedures and guidelines; financial transaction processing and reporting; credit card management; revenue collection and banking; asset management and accounts payable.
Simon Ash is the Chief Financial Officer.
Outcome and output structure
This report records the Department's performance against the performance indicators outlined in its 2009-10 Portfolio Budget Statements as required, using a presentation that aligns with the Department's program and organisational structure.
Figure 1.3 Changes to the outcome and output structure
| 2009–10 Portfolio Budget Statements | 2009–10 Portfolio Additional Estimates Statements | 2010–11 Portfolio Budget Statements |
|---|---|---|
| Outcome 1: Develop a vibrant, sustainable and internationally competitive broadband, broadcasting and communications sector, through policy development, advice and program delivery, which promotes the digital economy for all Australians. |
No change | Outcome 1: Develop a vibrant, sustainable and internationally competitive broadband, broadcasting and communications sector, through policy development, advice and program delivery, which promotes the digital economy for all Australians. |
| Program 1.1 Broadband and Communications Infrastructure: To facilitate the increased availability of fast, affordable and reliable broadband and communications infrastructure across Australia. Referred to as Infrastructure in this report. |
No change | Program 1.1 Broadband and Communications Infrastructure: To facilitate the increased availability of fast, affordable and reliable broadband and communications infrastructure across Australia. Referred to as Infrastructure in this report. |
| Program 1.2 Telecommunications, Online and Postal Services: To support all Australians to safely and securely realise the full potential of the digital economy. Ensure the availability and reliability to consumers and businesses of reasonably priced basic and essential communications services. Referred to as Digital Economy and Services in this report. |
No change | Program 1.2 Telecommunications, Online and Postal Services: To support all Australians to safely and securely realise the full potential of the digital economy. Ensure the availability and reliability to consumers and businesses of reasonably priced basic and essential communications services. Referred to as Digital Economy and Services in this report. |
| Program 1.3 Broadcasting and Digital Television: Ensure the smooth transition to digital television by the end of 2013. Support access to high quality and diverse broadcasting services that deliver content consistent with Australia's diverse community expectations. Referred to as Broadcasting and Digital Switchover in this report. |
No change | Program 1.3 Broadcasting and Digital Television: Ensure the smooth switchover to digital only television by the end of 2013. Support access to high quality, innovative and diverse broadcasting services that deliver content consistent with Australia's diverse community expectations. Referred to as Broadcasting and Digital Switchover in this report. |