Telecommunications2

 

 Overview

  The sector is one of the fastest growing and dynamic sectors of the economy.

  New technologies are sweeping the globe, led in large part by the widespread take up of

  the internet.  As the first Government monopoly market in Australia to be opened up to

  competition, it has been the testing ground for much of successive Government’s

  competition reform proposals.

  Key issues for the sector include regulation and the application, compatibility and

  utilization of new technologies.

  The infrastructure for fixed and wireless telecommunications services is among the

  newest and most rapidly expanding of all of the sectors in Australia.

  The introduction of digital television has seen a significant upgrade and replacement of

  broadcast television transmission equipment and associated links for program content.

  Continued investment and the deployment of digital technology can be expected.

  The impact of the introduction of recent and future waves of technology is uncertain and

  carries significant commercial risk. There is potential for the earlier investment in

  2001 Report Card Telecommunications 91

  technologies to be wasted through redundancy. Additionally, there is the risk that services

  and technologies will be introduced that are industry not market driven, with no economic

  market for them.

  Environmental issues related to telecommunications play a vital role .They include

  Sifting of radio communication facilities, namely mobile telephone and microwave

  towers. These are often required to be placed in prominent positions to provide

  adequate radio coverage and/or line of sight to the antenna. This is a problem in both

  the public and non-public telecommunication sectors;

  Radiation from mobile telephones and base stations, which is the subject of ongoing

  research and debate;

  The visible presence of cabling. Pay television cabling in particular is often run on

  overhead power distribution poles; and

  The majority of telecommunications cable plant is installed underground and therefore

  has a low environmental impact.

 Some socio economic factors include

 Telecommunications access to Australia’s regional and rural areas has been an issue

  for some time (Time Running Out, May 2001).

  These issues are being addressed by the Federal Government and require subsidization

  of carriers to provide services such as reasonable bandwidth access to the internet, and

  satisfactory mobile telephone coverage.

  Another issue that needs to be resolved, is the appropriate and cost effective sharing of

  the Customer Access Network.

  The majority of this network is copper cable plant owned by Telstra. Access by other

  carriers is subjected to negotiations and determination by the ACCC.

 

 The Systems

  The Public System

  Customer Access Network

  Telecommunications infrastructure consists of several different forms of communications

  network as well as the equipment and structures needed to provide telecommunications

  services. The main infrastructure is illustrated and summarized below.

  Wired Systems

  These consist of:

  • Twisted pair copper cables
  • Fiber optic cable
  • Broadband (pay television) co-axial cabling.

  Wireless systems

  These consist of:

  • Terrestrial radio   
  • Mobile telephone networks GSM and CDMA
  • Mobile Radio Networks for voice and data
  • High frequency networks for long range terrestrial communications;
  • Data networks such as local multipoint distribution servers (LDMS)
  • Satellite systems including data systems
  •  Internet data services and mobile telephoning, such as Optus Mobilesat and low earth

             orbiting system such as Globalstar.

  Switching Systems

  Switching systems comprise equipment and facilities for switching and connection of

  voice and data services between customers. The infrastructure varies in size from rural

  telephone exchanges for a few lines to major city exchange sites.

  Transmission Network

  The transmission network provides the interconnection between the switching systems

  and connections to facilities such as data centers and mobile telephone base stations.

  The network infrastructure includes the transmission equipment and interconnecting

  cable and radio systems, and provides the backbone communication links to mobile

  telephone base stations.

  The transmission network also includes the infrastructure to connect Australia to the rest

  of the world.

  This infrastructure includes:

  Five major fiber optic cables which provide the majority of the bandwidth; and

  Five satellite systems that have coverage footprints over Australia and neighboring

  Asia and South Pacific countries.

 

  The Non-Public System

  Wide area data network services have been implemented by agencies such

  as health services and educational institutions on the basis of providing services at a

  lower cost than can be provided by the public telecommunication carriers.

  The systems range from current “state of the art” Asynchronous Transmission Mode

  digital networks such as ATM to rural telephone systems using open wire (overhead) pole

  lines.

  The infrastructure includes:

  • Fiber optic and copper cable networks .
  • Transmission and switching equipment.
  • Microwave radio networks.
  • Mobile and fixed radio networks.
  • Data radio networks.

  2001 Report Card Telecommunications 88

  Examples of systems implemented are those operated by electricity transmission

  authorities throughout Australia. These systems include all the elements of a carrier type

  telecommunications network.

  Key Statistics

  The telecommunications industry is a significant contributor to the national economy. The

  annual revenue is in the order of $36 billion, which represents 5.5% of Australia’s Gross

  Domestic Product.

  Annual investment in telecommunication infrastructure is approximately $5 billion.

  Industry growth is approximately 13% per annum.

  2001 Report Card Telecommunications 89

 

Carriers/Services

Numbers

Number of Licensed Carriers

71

Major Information Service Providers

47

Number of major owner/operators of carrier infrastructure

6

Basic telephone lines in service

10.7 million

ISDN lines in service

> 1 million

mobile telephones

> 9 million

pay telephones

80000

 Number of internet connected households

2.2 million

 Number of customers connected to pay television cable

900000

Infrastructure

 

Fiber optic cable (Telstra)

3.1 million Km

Exchanges local connections (Telstra)·

> 1300

Mobile telephone base stations

> 9000

 

   Sources: (ATUG, Telstra, Optus, Vodafone)