The Treasurer, Mr Peter Costello, and the Minister for Communications, Information Technology and the Arts, Senator Richard Alston, today announced the tabling in the Parliament of the Radiocommunications Review Report and the Productivity Commission's Radiocommunications Inquiry Report, along with the Government's response.
The two reviews were established to assess legislation restricting competition or imposing costs or benefits on business. The Government has accepted 35 of the 47 recommendations contained in the two reports.
'The recommendations accepted by the Government were soundly-based and their implementation will enhance the efficiency of Australia's radiocommunications legislative framework-under which radiofrequency spectrum is allocated for services such as mobile telephony, satellite Internet, microwave broadcasting links and other wireless applications,' said Senator Alston.
'The Government has rejected only six recommendations, the most significant of which dealt with changes to competition rules. The Government has decided to retain existing pro-competitive legislative provisions enabling a Ministerial direction to be issued to limit the amount of spectrum any bidder can acquire in a spectrum auction. These provisions can also be used to encourage a new market entrant by limiting or excluding the participation of a dominant incumbent in such an auction,' said Mr Costello.
'The Government will be seeking further information on another six recommendations. In particular, the Government will examine the wider regulatory, budgetary and other implications of the Productivity Commission's recommendation that spectrum licences issued from July 2004 should have perpetual tenure.'
The Radiocommunications Review evaluated the appropriateness, effectiveness and efficiency of the radiocommunications regulatory regime and made a total of 18 recommendations. These recommendations are mostly concerned with enhancements to the Australian Communications Authority's (ACA) administrative processes in order to improve the efficiency and transparency of spectrum management in Australia.
The Productivity Commission's Radiocommunications Inquiry reviewed the market-based radiofrequency spectrum management reforms incorporated into the radiocommunications legislative framework, and the performance of the ACA in administering these reforms. The Commission made a total of 29 recommendations for legislative and non-legislative improvements to further, and more efficiently, progress the implementation and operation of the market-based reforms. The Commission's Inquiry concluded that the ACA has '...done a commendable job in a challenging technical and commercial environment'.
Senator Alston said that amendments to the Radiocommunications Act 1992 would be developed in 2003.
The Radiocommunications Review Report, the Productivity Commission's Radiocommunications Inquiry Report and the Government Response to their recommendations can be accessed through the Department of Communications, Information Technology and the Arts website at www.dcita.gov.au.