Telstra s Regional and Rural Presence Plan Preliminary Draft for Consultation

Transcription

1 Telstra s Regional and Rural Presence Plan Preliminary Draft for Consultation

2 OVERVIEW Telstra is a major provider of telecommunications services to Australia s regional and rural communities. Our dedication and commitment to serving the needs of these customers is long standing and will continue in the future. Despite this strong commitment, Australian Government regulation since 2005 requires Telstra to maintain a local presence in regional, rural and remote Australia (Carrier Licence Conditions (Telstra Corporation Limited) Declaration 1997 (Amendment No. 2 of 2005) Condition Number 32). The Licence Condition applies to the extent that the local presence is broadly compatible with the licensee s overall commercial interests, is not unduly prescriptive, and does not impose undue financial and administrative burdens on the licensee. The Licence Condition also requires Telstra to complete a Regional and Rural Presence Plan every three years. Telstra s Regional and Rural Presence Plan ( the Plan ) sets out Telstra s response to the Licence Condition. As required under Licence Condition 32(11), Telstra invites submissions from interested stakeholders. The consultation period will run for 42 days, commencing on 16th January, 2012 and closing on 26th February, If you would like to comment on the plan, please do so and send your feedback via to RegionalandRuralPresencePlan2012Feedback@team.telstra.com onwards will continue to bring tremendous change for the telecommunications industry. The Federal Government has committed to the roll out of the National Broadband Network (NBN), introducing high-speed broadband to 93% of the population. All remaining premises will be served by a combination of next-generation fixed-wireless and satellite technologies. Telstra intends to participate in the NBN. In conjunction with the NBN, the Government is implementing major regulatory reforms relating to the structure of the industry (including the structural separation of Telstra), and other obligations, such as the Universal Service Obligation. Consistent with the 2009 Regional and Rural Presence Plan ( 2009 Plan ), this Plan will focus on the service standards and outputs that are delivered, and will continue to be delivered, by Telstra s regional, rural and remote presence. Appendix A sets out the measures for assessing Telstra s progress in implementing the Plan. As required under Licence Condition 32(39), Telstra will report annually on its progress against the key measures, highlighting milestone achievements in the service of our regional, rural and remote customers. The Plan summarises: The role of local managers that support customers, make decisions and prioritise investment in local areas; Services for groups with particular needs. These services are provided through national Telstra programs and supported by local managers and staff; Telstra s approach to resource management and information on broadband, mobile and fixed services in regional, rural and remote Australia; Telstra s continuing role in community development; Consultation processes, through local managers and formal Telstra national consultative processes; and Performance measures and reporting. PAGE2/49 PAGE 2/49

3 Contents ABOUT THIS PLAN Licence Condition Telstra's approach to the Regional and Rural Presence Plan Structure of the Plan General approach to commercial aspects of the Plan 8 TELSTRA'S KEY REGIONAL BUSINESS PRIORITIES Improve customer satisfaction Simplify the business Grow our customer base A sustainable Telstra 10 ADVANCES IN REGIONAL TELECOMMUNICATIONS SINCE Launch of 4G services on Telstra Network Improved Next G Service ADSL 2+ expansion Cloud Computing 11 PARTNERSHIPS TO IMPROVE HEALTH, EDUCATION AND OTHER SERVICES THROUGH TELSTRA TECHNOLOGY INNOVATIONS Fire safety Agriculture Health (mobile) Health (hospital-based) NSW Government Schools 14 INVESTMENT IN TELECOMMUNICATIONS SERVICES IN REGIONAL, RURAL AND REMOTE AUSTRALIA SINCE Telstra s backhaul investment in regional areas Birdsville s permanent 3G service Arnhem Land fibre project 15 KEY POLICY DEVELOPMENTS National Broadband Network (NBN) Telstra's Structural Separation Undertaking (SSU) and Migration Plan Telecommunications Universal Service Management Agency (TUSMA) Universal Service Obligation (USO) Reform 16 MANAGEMENT STRUCTURE AND DECISION MAKING Licence Condition Telstra s strategy and regional Australia Executive accountability Chapter summary 19 CUSTOMER SERVICE AND SUPPORT Licence Condition 20 PAGE3/49 PAGE 3/49

4 8.2. Improving customer service remains a key imperative for Telstra Telstra's Customer Service Charter Complaint handling Services recognising regional, rural and remote needs Addressing particular needs of regional, rural and remote customers Services for older Australians Services for remote Indigenous communities Low income measures Telstra disability services Serving the dedicated needs of small and medium business Retail outlets and customer information Customer enquiries and service support Regulated activities Customer Service Guarantee (CSG) for standard telephone services Network Reliability Framework Universal Service Obligation Telstra operated payphones Priority Assistance for eligible customers Consumer safeguards and industry codes Natural disasters Mobile services commitment Chapter summary 31 COORDINATION AND MANAGEMENT OF ACTIVITIES Licence Condition Resource management Regional, rural and remote telecommunications services Broadband services Mobile services Fixed network and telephone services Chapter summary 36 COMMUNITY DEVELOPMENT Licence Condition Commercial provision of services Building stronger, more inclusive communities Local sponsorship Digital inclusion Telstra Foundation Disaster relief Chapter summary 39 PAGE4/49 PAGE 4/49

5 OPERATIONAL CHANGES AND CONSULATION Licence Condition Addressing telecommunications interests Consultation processes Chapter summary 40 REPORTING Licence Condition Reporting on the Regional and Rural Presence Plan Meeting the Regional and Rural Presence obligation 42 APPENDIX A: MEASURES FOR ASSESSING TELSTRA S PROGRESS IN IMPLEMENTING THE PLAN 44 PAGE5/49 PAGE 5/49

6 ABOUT THIS PLAN 1.1. Licence Condition In August 2005, the then Minister for Communications, Information Technology and the Arts (the Minister) approved the Carrier Licence Conditions (Telstra Corporation Limited) Declaration 1997 (Amendment No. 2 of 2005) (the Licence Condition). The Licence Condition states: 32. (1) The licensee must maintain a local presence in regional, rural and remote Australia, to the extent that this: (a) is broadly compatible with the licensee s overall commercial interests; and (b) is not unduly prescriptive and does not impose undue financial and administrative burdens on the licensee. The Licence Condition requires Telstra to complete a plan: 32. (2) Within 120 days after the commencement of the Carrier Licence Conditions (Telstra Corporation Limited) Declaration 1997 (Amendment No. 2 of 2005), the licensee must give the Minister a draft local presence plan setting out the range of activities and strategies the licensee deploys or will deploy in regional, rural and remote Australia to fulfil the obligation under subclause (1). The Minister advised that Telstra may refer to its local presence as Telstra s Regional and Rural Presence. Such reference includes reference to regional, rural and remote areas. References to customers in these areas include individual and business customers. This includes customers engaged in small business, agriculture and farming. This Regional and Rural Presence Plan (the Plan) addresses the requirements under the Licence Condition. In accordance with Licence Condition 32(6), the Plan will run for three years from the date that it is approved by the Minister. Licence Condition 32(39) requires that within 60 days of the end of each financial year, Telstra must provide the Minister and the Australian Communications and Media Authority (ACMA) with a report on its progress in implementing the Plan during that year and make a summary of the report available to the public. Licence Condition 32(19) sets out those matters the Minister should consider in approving the Plan, including the extent to which it addresses each of the following: (a) telecommunications service interests of the licensee s regional, rural and remote customers and potential customers, including: (i) how the management structure and decision-making processes in the licensee will address these interests; and (ii) how these interests will be represented within the licensee s management structure; (b) customer service and support to meet the telecommunications service interests of the licensee s customers in regional, rural and remote parts of Australia, including: (i) management of complaints from the licensee s customers in regional, rural and remote parts of Australia; and (ii) provision of telecommunications service information to the licensee s customers in regional, rural and remote parts of Australia; (c) coordination and management of the licensee s activities in regional, rural and remote parts of Australia, including: (i) targeted application of the licensee s resources to meet the telecommunications service interests of the licensee s customers in regional, rural and remote parts of Australia; and PAGE6/49 PAGE 6/49

7 (ii) an integrated approach to telecommunications service connection, maintenance and repairs in regional, rural and remote parts of Australia; (d) support by the licensee through its service activities for broader community development in regional, rural and remote parts of Australia; (e) arrangements that the licensee currently has in place to address telecommunications service interests of regional, rural and remote customers, any changes to those arrangements during the period of the local presence plan and the consultation and other related processes that the licensee proposes to follow in relation to any such changes; (f) the licensee s measures for reporting on its performance in relation to the local presence plan and the local presence obligation mentioned in subclause (1). Licence Condition 32(11) requires that before submitting the draft Plan to the Minister, Telstra must: (a) publish a preliminary version of the draft Plan and invite submissions within a specified period from: (i) representatives of local government bodies in regional, rural and remote parts of Australia; and (ii) representatives of end-users of telecommunications services in those parts of Australia; and (iii) representatives of the interests of people in those parts of Australia; and (b) give consideration to any submissions received within that period from those persons; and (c) prepare a report for the Minister about the submissions received and any changes made to the draft plan as a result of the submissions. A submission report will be provided to the Minister following this consultation Telstra's approach to the Regional and Rural Presence Plan Telstra has developed an agreed comprehensive measurement and reporting framework in order to assess progress in implementing the Plan. This framework is consistent with the 2009 Plan. These measures are detailed in Appendix A. In setting out the reporting framework for this Plan and consistent with previous plans, Telstra focuses on service standards and measurements of output as the appropriate indicators of performance, rather than the inputs to achieve these standards. This is consistent with the conclusion of the Estens Inquiry that formed the basis of the Regional and Rural Presence Recommendation (Recommendation 8.2). In making that recommendation, the Inquiry stated that: A Government requirement for the maintenance of a local presence by Telstra should focus on the outcomes and benefits that are evident from that local presence. It should not seek to prescribe how Telstra should operate in order to achieve those outcomes. 1 The Plan proposes to draw together references to extensive information on service indicators that are currently published from a variety of sources. References are current at the date of publication of the Plan. 1 Department of Communications, Information Technology and the Arts, 2002, Connecting Regional Australia, The Report of the Regional Telecommunications Inquiry, Commonwealth of Australia, Canberra, p.303. PAGE7/49 PAGE 7/49

8 1.3. Structure of the Plan Consistent with the 2009 Plan, the Plan is divided into the sections that largely reflect the six areas that the Minister must consider in deciding to approve the Plan, as outlined in Licence Condition 32(19) and quoted in Section 1.1 above. Chapters seven (7) through to twelve (12) of the Plan reflect each of the paragraphs of Licence Condition 32(19): Management structure and decision-making; Customer service and support; Coordination and management of activities; Community development; Operational changes and consultation; and Reporting. Each section contains links to further information or reporting on matters ranging from the products and services offered by Telstra, to its commitments, undertakings, structure and governance. These links and other contact information are current at the date of publication but may change during the life of the Plan General approach to commercial aspects of the Plan Telstra maintains extensive customer support activities and services detailed in this Plan. The activities, services and processes set out in the Plan may alter over the duration of the Plan in response to customer requirements, commercial, technological and regulatory developments. The website references cited in the Plan contain comprehensive reports and information. As noted above, these references are correct at the time of publication. The content of information contained at the websites is also subject to change as the range of products and services provided by Telstra is continually revised in response to customer demand. Product names described in this Plan may also change over the life of the Plan, as may the details of the characteristics of some of these products. Telstra undertakes extensive commercial investment and operational activities, involving a wide range of suppliers. Details of these arrangements and future investment plans are treated as commercially confidential. Release of this information would be inconsistent with the legal obligations of the company. The changing nature of commercial activities and information, and limitations on forward looking financial commitments in the Plan reflects the dynamic and competitive nature of telecommunications markets, budgetary cycles and the requirement to report financial commitments to the stock markets on which Telstra shares trade. As the NBN represents significant transition for the industry, the ongoing relevance of some obligations (particularly regulations) remains unclear at the time of writing. Telstra has provided as much information as is available at the time of drafting and will continue to communicate any changes via its website. PAGE8/49 PAGE 8/49

9 TELSTRA'S KEY REGIONAL BUSINESS PRIORITIES 2.1. Improve customer satisfaction At Telstra, customers are at the fore of everything we do and improving customer service and satisfaction is a key priority for Telstra. We have completed an immense amount of work to improve customer service in 2011, including appointing Telstra s first Chief Customer Officer; implementing measures to reduce bill shock; introducing our new online store and self service portal; announcing plans to open 100 new stores; and introducing a simple, easy to read bill, to name just a few customer service initiatives. These improvements are making a difference. We have seen reductions in customer complaints, fewer incoming calls to customer call centres, fewer repeat visits to fix recurring problems and more online self service transactions. Further, Telstra's dedication to customer service is reaping rewards, with a 3% reduction in new TIO complaints from the previous year. 2 In fact, in 2010/11 Telstra was the only Top 10 member to experience a reduction in new complaints over the last financial year. Telstra remains committed to improving customer service and the customer experience for all our customers, including regional, rural and remote customers Simplify the business In 2010, Telstra launched Project New with the aim of simplifying our operating business and making it easier for customers to interact with us. In 10/11, Project New delivered over 400 projects. Telstra has 700 proposed improvements scheduled for the year These initiatives are having tangible results, making it easier for our customers to interact with us, regardless of where they are. Some of the key business initiatives include: Launching 24x7 call centres for support and selected sales. Since launch, over 5 million customers have contacted us after hours; Making available weekend technician appointments. Since commencing, over 100,000 weekend appointments have been utilised by our customers; Establishing a dedicated move team. Over a quarter of a million customers have used our move team to date. Further detail can be found at Introducing Telstra Premium Plus, which is a service that enables remote access or home visit service to help customers repair, set-up or install a wide range of technologies. Information is available at Launching of Social Media Channels implementing the live chat functionality and forms on the Telstra Facebook page, opening the next chapter of our customer connection and letting customers interact with us live online. 2 Telecommunications Industry Ombudsman Annual Report 2011, data/assets/pdf_file/0003/28470/tio_ _ar.pdf PAGE9/49 PAGE 9/49

10 2.3. Grow our customer base Telstra prides itself on its commitment to delivering leading products and services to our customers in every corner of Australia. We know our customers have more choice than ever before and we have to constantly improve the value we offer. As such, we are committed to retaining and growing our customer base through significant investment, increased customer satisfaction and lower churn A sustainable Telstra Telstra's ambition is to achieve long-term success by ensuring that social and environmental, as well as economic considerations are at the heart of our operations. Our commitment to sustainability is about the sustainability of our business and the sustainability of the human, social and environmental assets upon which our success relies. We have recently appointed a Chief Sustainability Officer who will be responsible for providing strategic leadership, enhanced governance and improved environmental, commercial and social outcomes for Telstra. A Chief Sustainability Office will be established in 2011/12, bringing together key functions from across the business, to improve the strategic alignment of our activities and enhance our sustainability performance. In the last financial year, the total value of Telstra s social investment across the country was $248 million. Our social investment comprises: disaster relief and community investment (e.g., Telstra Connected Seniors, Telstra Foundation, Telstra Assistance Fund and other programs), which includes funds, donations of goods and service, and the time and expertise of our employees. Further information can be found in Telstra s 2011 Sustainability Report at PAGE10/49 PAGE 10/49

11 ADVANCES IN REGIONAL TELECOMMUNICATIONS SINCE 2009 Telstra has continued to invest across the country, helping serve customers and improve business performance. Since 2009, more regional, rural and remote customers are able to access high-speed broadband and mobile broadband, gain access to advanced mobile technology (through the launch of Telstra s 4G LTE network) 3 and experience increased reliability as a result of Telstra s continued commitment. Over time, in real terms, prices have fallen providing greater affordability to customers, regardless of where they live. We detail some of these investments below Launch of 4G services on Telstra Network In September 2011, Telstra began offering commercial 4G services. The launch of Long Term Evolution (LTE) 4G mobile broadband services in selected regions (including more than 60 regional locations to date) means Australians in these regions have access to one of the world's most advanced mobile networks Improved Next G Service Telstra has continued to invest in its world class wireless broadband Next G network. In the past 3 years, access to the Next G service has been extended to an additional 1,100 sites, or an additional 100,000 sq km coverage with infill coverage greatly improved. Telstra's Next G mobile network continues to provide the most superior coverage to regional, rural and remote customers. Through Telstra's blackspots program, technicians and engineers are able to receive feedback on coverage blackspots, to continue to invest in the network and improve service availability ADSL 2+ expansion During the past 3 years, Telstra has increased ADSL2+ coverage from 82.1% to 84.2% of the Australian population. During this time, 711 exchanges have been upgraded to ADSL2+, including many in regional and rural areas. In October 2011, Telstra announced that it was upgrading more than 2000 street side cabinets to include ADSL2+ equipment. This project means that customers who are connected through the street side cabinets will now be able to connect to ADSL2+ whereas previously they either did not have high-speed broadband access, or only an ADSL service. In addition, Telstra is also upgrading backhaul to support ADSL 2+ services. This upgrade is expected to occur over an 18 month time frame. Further details on the roll out schedule are available at: Cloud Computing In 2011, Telstra announced an $800 million investment into cloud computing over the next 5 years. This investment will see Telstra grow its network application and services business. Telstra s cloud computing service offers world leading software, infrastructure and communications available on a pay-for-use basis. Independent research 4 shows that Telstra's 3 Telstra media release: A new era of telecommunications Telstra lights up 4G mobile services in Australia, 27 September 2011, 4 Independent research conducted by Castalia Advisory Group. See Telstra Media Release, Cloud services delivers savings to business big and small for further detail - PAGE11/49 PAGE 11/49

12 investment in cloud computing can save small and medium enterprises (SMEs) many thousands of dollars compared to a comparable in premise solution, allowing businesses to focus on their core activities. PAGE12/49 PAGE 12/49

13 PARTNERSHIPS TO IMPROVE HEALTH, EDUCATION AND OTHER SERVICES THROUGH TELSTRA TECHNOLOGY INNOVATIONS Telstra has also partnered with many of our Business, Enterprise and Government customers to deliver improved outcomes for regional, rural and remote customers across a range of industries. Through Telstra's technology innovation, these partnerships are continuing to benefit those customers who reside in regional, rural and remote communities across Australia. Some examples are provided below Fire safety Telstra has partnered with EYEfi (spatial video service provider) to trial cameras and environmental monitoring equipment across key regional locations to provide advanced fire watch technology. The cameras use Telstra s Next G network to provide visibility of fire threats from new vantage points throughout our national and state forests. The cameras and the network then communicate critical information about a fire s whereabouts, as well as environmental, micro-climate and bio-diversity data directly to users Agriculture Telstra works with vineyards in many regional areas to assist with water irrigation technologies via telecommunications services. In many areas, it is difficult to control the appropriate amount of water to maintain large vineyard development and growth. For example, Food and Beverage Australia Ltd (FABAL) built pipelines across their vineyards to link pumping stations. These pumping stations control water flow to the vineyards and are managed using Telstra s Next G network. Alarms, switching pumps on and off and managing water flow remotely are all vital parts of the management. The Barossa Council in South Australia also uses water-based telemetry to help them manage their domestic waste. Covering 8000sq km, six major towns and nine satellite towns, the Next G network is used to access six major networks with pump stations that are then monitored at a central location. Consequently, they can quickly fix or address issues when there are breakdowns. The Barossa Council uses the system to recycle 85% of their waste water to then be used by local grape growers Health (mobile) In 2009, Telstra and the Tasmanian Department of Health and Services teamed up to launch wireless technology that has been dubbed the doctor s house call of the 21st century. Nurses use Telstra s Next G mobile handsets to link doctors and specialists with patients that are unable to get to a hospital. The handset allows real-time video streaming with multiple GPs or medical experts. The technology was successfully trialled in the Central Highlands and Derwent Valley, with the aim to bring the technology to the rest of Tasmania in the future Health (hospital-based) The Loddon Mallee Rural Health Alliance, in partnership with Telstra, runs the Virtual Trauma and Critical Care Unit Project. The Virtual Trauma units are used across the Loddon Mallee region of Victoria where, like in many parts of rural Australia, it can be difficult to access specialist medical services, particularly in the areas of paediatrics, surgery and trauma care. The Virtual Trauma units comprise of mobile wireless high definition video cameras and monitors, which are all linked to the Telstra Next IP TM network. Specialists in Melbourne can be an integral part of patient stabilisation and the treatment process in real time. Specialists can control the high definition camera, join a conference with a patient and staff, review scans and test results as well as watch live endoscopic video feeds. This helps Victorian hospitals provide the best quality care for patients and minimises distress for families and friends. The technology allows for easy access to specialist support and helps avoid unnecessary and costly transfers from regional hospitals. PAGE13/49 PAGE 13/49

14 4.5. NSW Government Schools High-speed broadband has been rolled out to 2400 government schools and TAFE colleges across NSW enabling students in NSW including those in rural and regional schools to be connected to the world and able to link up with experts from universities and other classrooms in NSW and overseas. Telstra rolled out more than 4,500 kilometres of optic fibre with the investment creating around 150 jobs. PAGE14/49 PAGE 14/49

15 INVESTMENT IN TELECOMMUNICATIONS SERVICES IN REGIONAL, RURAL AND REMOTE AUSTRALIA SINCE Telstra s backhaul investment in regional areas Increasing backhaul capacity provides greater available bandwidth resulting in greater speed and less congestion allowing more users to enjoy better broadband speeds. Overall, this provides an improved customer experience. Over the past three years, Telstra has invested around $264 million to provide additional backhaul capacity to regional areas. These programs have included transmission diversity and cable replacement in regional exchanges, and provision of connectivity for major regional commercial customers. This continued investment is part of Telstra s commitment to serving regional customers and is not a result of any Government-funded program Birdsville s permanent 3G service Birdsville is an iconic outback town in Queensland. Its annual racing carnival is so popular that the town's population swells from its usual 120 residents to more than 6,000 for the event. In August 2010 Telstra announced that Birdsville had received its first permanent 3G mobile service. It is the first service of its kind as it uses satellite-fed 3G technology instead of the terrestrial network. The service provides coverage to the town and surrounding areas, extending outwards to a radius of around 20 to 30 kilometres. The new base station was a joint effort with Telstra supplying the satellite technology and our network partner Ericsson donating the base station equipment Arnhem Land fibre project On 2 December 2009, Telstra announced the completion of one of the largest optic fibre and broadband infrastructure projects undertaken in Australia in recent times the Arnhem Land Fibre Project. Nine Indigenous communities and the township of Nhulunbuy are now connected to Telstra's fibre optic backbone. The project provided high-speed broadband and other services equivalent to those in our largest cities to some of Australia's most remote communities. Over 940km of fibre optic cable was laid across fragile terrain and in difficult climatic conditions between Jabiru and Nhulunbuy. It has connected around 10,000 people living in some of the most remote parts of Australia to high-speed broadband and a range of other advanced communications services, at a cost of around $34 million. Traditional owner Joe Yunupingu said that Telstra s interaction with the community on the project was actually the best ever any white people has done on Aboriginal land. 5 This project required consultation with the Northern Territory Government and Traditional owners. An Environmental Management Plan was developed to avoid and reduce impacts on threatened species. The fibre solution meets the needs of a number of communities and businesses for telecommunications services including telephony, mobile and broadband services. 5 Source: Traditional owner pleased with consultation, 10 December 2008, PAGE15/49 PAGE 15/49

16 KEY POLICY DEVELOPMENTS A range of key policy developments will affect the structure of regional telecommunications and the manner in which services are delivered to people in regional, rural and remote Australia in the future National Broadband Network (NBN) The NBN will deliver fixed broadband services to 93% of the population, with the remainder of the population to be served by satellite and wireless broadband. In June 2011, Telstra signed Definitive Agreements with NBN Co and the Commonwealth Government, outlining Telstra s participation in the roll out of the NBN. At the time of writing, these agreements remain subject to the achievement of several conditions precedent, including acceptance by the ACCC of Telstra s Structural Separation Undertaking (SSU). As part of this agreement, Telstra has agreed to disconnect, progressively, copper-based Customer Access Network services and broadband services on its HFC cable network (but not Pay TV services on the HFC) that are provided to premises in the NBN fibre footprint, and will migrate services onto NBN-based services, over the expected 10 year build period of the NBN. Telstra intends to participate in the NBN Telstra's Structural Separation Undertaking (SSU) and Migration Plan On 9 December 2011, Telstra lodged a revised undertaking with ACCC for their approval. This plan sets out Telstra's commitment to structurally separate by 1 July 2018 and its acceptance is a condition precedent for the Definitive Agreements between Telstra and NBN Co signed in June 2011, outlining Telstra s engagement in the NBN. The SSU is also designed to provide certainty for the industry during the migration period to the NBN. The SSU sets out various binding and enforceable commitments which Telstra will put in place to provide for transparency and equivalence in the supply of regulated services to its wholesale customers during the transition to the NBN. Telstra's Migration Plan is a binding instrument which sets out the steps Telstra will take to disconnect voice and broadband services on its copper and HFC networks as part of the migration process. Details of Telstra's revised Structural Separation Undertaking and Migration Plan are available at Telecommunications Universal Service Management Agency (TUSMA) Universal Service Obligation (USO) Reform As part of the NBN, the Government has committed to reforms of the USO. From 1 July 2012, it is intended that Telstra will have responsibility for a range of regulatory obligations under a contractual arrangement with TUSMA. The TUSMA legislative package was introduced in Federal Parliament in early November 2011, but at the time of writing, is yet to be enacted into law. Telstra has entered into an agreement with the Commonwealth, providing that while premises remain connected to Telstra's copper network, Telstra will have an obligation to continue to operate and maintain the existing copper lines (subject to some limited exceptions). Once an area is disconnected from the copper exchange as part of the NBN migration process, Telstra has agreed that it will be the provider of last resort and continue to supply Standard Telephone Services (STS) to end users over the NBN where requested by PAGE16/49 PAGE 16/49

17 the end user. This agreement gives regional and rural customers certainty that Telstra will continue to serve them as they transition to the NBN. For the remaining 7% of Australian premises, Telstra's contract with the Commonwealth requires Telstra to operate and maintain its existing copper network and other infrastructure in non-fibre areas (subject to certain limited exceptions). Telstra will be required to continue to provide an STS for any consumer who wishes to continue with the service and to ensure that the copper network is sufficiently maintained. As part of the arrangements, Telstra will also maintain responsibility for: ensuring that payphones are reasonably accessible to all people in Australia on an equitable basis, regardless of where they reside or carry on business; the ongoing delivery of emergency call handling; and ensuring the existence of appropriate safety net arrangements that will assist the migration of voice only customers to an NBN fibre service while copper is decommissioned. PAGE17/49 PAGE 17/49

18 MANAGEMENT STRUCTURE AND DECISION MAKING 7.1. Licence Condition 32. (19) The Minister must consider the extent to which the draft Plan addresses each of the following matters: (a) telecommunications service interests of the licensee s regional, rural and remote customers and potential customers, including: (i) how the management structure and decision-making processes in the licensee will address these interests; and (ii) how these interests will be represented within the licensee s management structure Telstra s strategy and regional Australia Core sales and support services provided to Telstra customers in regional, rural and remote Australia are delivered through the main functional business units in Telstra, such as Telstra Customer Service and Sales and Telstra Operations. Telstra Country Wide is a part of the broader Telstra Customer Service and Sales group and is the local sales and marketing business unit operating throughout Australia. Other customer facing and operations business units, including Telstra Country Wide maintain staff in regional, rural and remote areas of Australia. As noted above, core sales and services provided to Telstra customers in regional, rural and remote Australia are delivered through the main functional groups in Telstra. The role of Telstra Country Wide is complementary to the core activities of the company serving customers throughout Australia. The role continues to evolve and includes: Sales and related customer support through Telstra s Australia-wide retail network; Local marketing, information and education on new products and capabilities; Escalation of customer issues and difficulties through central Telstra sales and service processes; Providing advice on investment priorities for company resources to address the needs of people in regional, rural and remote areas; Leading specialised activities related to regional, rural and remote Australia, for example through Telstra s National Indigenous Directorate; and Management of customer understanding of innovation and of local impacts of changes on customers. Telstra recognises that regional, rural and remote customers are best served by integrated technologies and services, bringing together the many elements of Telstra s organisational capabilities. Telstra continues to maintain a local presence in regional, rural and remote Australia to add to the value of its products and provide a better experience for customers. The principal measure of the success of this strategy is business growth, reflecting customer choice of Telstra in the highly competitive and dynamic Australian telecommunications market. Telstra will continue to undertake projects and activities that benefit customers in regional, rural and remote Australia. Regional, rural and remote customers will continue to see improvements in world-class telecommunications products and services. Information about projects that PAGE18/49 PAGE 18/49

19 Telstra is undertaking will continue to be reported in Telstra s annual report and through public announcements Executive accountability Telstra will continue to maintain senior level accountability for regional, rural and remote customer operations. It is intended that Telstra s regional, rural and remote customers benefit from having decisions made at the highest levels appropriately informed by knowledge of local conditions. Local Telstra managers report to senior Telstra managers responsible for overall sales and service performance across particular regions. The Group Managing Director of Telstra Consumer and Country Wide, to whom these managers report, represents regional, rural and remote customers interests at the highest levels within the company. The principal way the interests of regional, rural and remote customers are identified is through feedback from customers during the normal course of sales and service activities. Staff and managers in shops, call centres and on service calls provide information on customer issues and needs. Telstra undertakes regular surveys and research into the needs and views of its customers throughout Australia. Telstra will continue to seek the views of its regional, rural and remote customers for the purpose of addressing their telecommunications service interests. It is intended that customers benefit from having decisions informed by an improved understanding of these interests. It is also intended that customers benefit from having their service interests addressed by Telstra senior management. Telstra will continue to maintain accountability for representing the telecommunications service interests of its regional, rural and remote customers at senior levels within the company. This provides a voice for these customers within the company structure and improves representation of their telecommunications service interests at senior levels within the company. Information on Telstra s corporate governance and Board practices can be found online at Chapter summary Telstra will continue to maintain a local presence in regional, rural and remote Australia to the extent that this is broadly compatible with its commercial interests, is not unduly prescriptive and does not impose undue financial and administrative burdens on the company. Telstra will continue to undertake projects that will benefit its customers in regional, rural and remote Australia. These projects and associated strategy are commercial in confidence and cannot be set out in the Plan. Telstra will continue to maintain an ongoing local management presence in regional, rural and remote Australia. Telstra will continue to maintain a structure of local managers responsible for overall sales and related performance in their regions. Telstra will continue to seek the views of its regional, rural and remote customers for the purpose of addressing the telecommunications service interests of its customers. Telstra will continue to maintain senior level accountability for representing the telecommunications service interests of its regional, rural and remote customers at senior levels within the company. PAGE19/49 PAGE 19/49

20 CUSTOMER SERVICE AND SUPPORT 8.1. Licence Condition 32. (19) The Minister must consider the extent to which the draft plan addresses each of the following matters: (b) customer service and support to meet the telecommunications service interests of the licensee s customers in regional, rural and remote parts of Australia, including: (i) management of complaints from the licensee s customers in regional, rural and remote parts of Australia; and (ii) provision of telecommunications service information to the licensee s customers in regional, rural and remote parts of Australia; 8.2. Improving customer service remains a key imperative for Telstra Telstra is committed to improving our customer service. This is both a strategic and operational priority, as providing superior customer service, value and quality will enable us to attract and retain customers and continue to grow our business. Accordingly, we have been investing in changes for the past two years to make it faster, easier and simpler for customers to deal with us. Telstra has embarked on this journey of change, making significant investment in our systems, processes, staff and organisational structure in order to deliver a clearer, simpler operating model focussed on the customer. Some recent examples of things we are doing include: Appointment of a Chief Customer Officer; Plans to introduce shaping on domestic mobile data usage to help customers avoid unexpectedly high bills; Summaries (known as My Offer Summary ) for each of our consumer plans which capture the key information on a single page in simple, plain English; Our line-up of educational how-to videos on Telstra s YouTube KnowHow channel covering things like the new mobile bill explainer and international roaming; Providing access to sales and support from Telstra 24 hours a day, 7 days a week for selected products and services; Making calls to a number of Telstra service numbers free when calling from a Telstra fixed and mobile service when in Australia; A new revised bill format; and Making technicians available Saturday and Sunday between 7am and 7pm for appointments for selected products/services. These changes are having a positive impact for Telstra, with TIO complaints falling last year. These changes will benefit all of Telstra's customers, including those in regional, rural and remote areas Telstra's Customer Service Charter Telstra s commitment to provide the highest level of customer service is detailed in the current Telstra Customer Service Charter. The Charter reinforces Telstra s support for regional, rural and remote customers. Telstra publishes its Customer Service Charter online at PAGE20/49 PAGE 20/49

21 8.4. Complaint handling Telstra maintains a formal complaint management process to ensure that each customer complaint is addressed at an appropriate level. It applies to all Telstra customers no matter where they live, including those living or working in regional, rural and remote Australia. Telstra s aim is to resolve customer complaints quickly and effectively. Telstra seeks to keep customers informed and provide a response as soon as possible, usually within five business days. Some customer complaints may take longer to resolve for a variety of reasons. Where this arises: If we need to investigate a complaint further, we aim to resolve it, or advise the customer what we are doing to resolve it, within five business days; While a complaint is being investigated, we aim to provide the customer with updates of our progress so that customers are aware of what is happening with the complaint; We aim to resolve complaints within twenty business days of the customer raising a complaint. Telstra will continue to maintain a formal complaint management process available to all customers throughout Australia, including publication of Telstra complaint handling areas and contact details. It is intended that regional, rural and remote customers benefit from being able to access Telstra s complaint management process and to access information about the steps that they need to take to have their telecommunications complaints resolved. Details of how to make a complaint, how to escalate a complaint, and what external options are available if customers are unable to resolve their complaint directly with Telstra are online at Complaints can be made using any of the following options: Online via the how to make a complaint area of the Telstra website By Phone o Consumer customers can call us on and say "complaint". o Business customers can call us on and say "complaint". Alternatively, Business customers can contact their Account Executive. From July 2010, calls to Telstra s most frequently used customer service numbers became free of charge from Telstra services when calling from within Australia. By Letter o Customers can send us a letter addressed to Telstra Locked Bag Melbourne VIC 3001 If complaints are not resolved to a customer s satisfaction by a consultant at one of the above contact points, the customer will be escalated to the next level of management or a Case Manager in a specialised customer relations area. The manager of those complaints will deal personally with the customer to discuss the complaint and the resolutions that have been offered. If Telstra has not resolved an issue to the customer s satisfaction, customers can refer their complaint to the Telecommunications Industry Ombudsman (TIO). If the complaints relate to breaches of Carrier Licence Conditions or regulatory issues, they can be addressed to Australian Communications and Media Authority (ACMA). The TIO publishes a report on complaint levels by issue and level of complaints for all carriers. As indicated earlier, Telstra s complaints fell in FY 10/11 and Telstra remains committed to further improvements. 6 Numbers for the TIO are advertised in the front information section of the White Pages, Business and Government directory. The TIO website is PAGE21/49 PAGE 21/49

22 Telstra complaint handling policy conforms to the Communications Alliance Code. Information about the code is available online at Services recognising regional, rural and remote needs Telstra understands that customers living outside the major cities sometimes face different circumstances, concerns and issues. Its structure and activities recognise the need for specialist knowledge and appropriate responses. Telstra will continue to offer products and services designed to meet the needs of its customers in regional, rural and remote Australia. These products and services will change over time. It is intended that these products and services will continue to address the telecommunications service needs of Telstra s regional, rural and remote customers Addressing particular needs of regional, rural and remote customers Telstra will continue to offer tailored products and services for its regional, rural and remote customers with particular communication needs, including older customers, those with a disability or on low incomes and people living in remote Indigenous communities. These products and services will change over time. Telstra also provides extensive information on relevant services so that customers are aware of and able to access these arrangements. Further information on some of these services is set out in the rest of this Chapter Services for older Australians Telstra Connected Seniors is a tailored program created to help older Australians learn more about technology. It offers individual self teaching guides, fun interactive workshops, and also offers eligible community groups with the opportunity of funding to run successful training courses around technology. Further information is available at Services for remote Indigenous communities In 2005, Telstra established a National Indigenous Directorate to deliver improved telecommunications services to remote Indigenous communities across Australia, working with governments and stakeholder groups where this is appropriate. Telstra s commitments to Indigenous communities are wide ranging. Logistical, cultural and social factors affect the provision and take-up of basic telephone services to more than 1,200 remote Indigenous communities throughout Australia. Low incomes and cultural factors require the development of new and better ways to meet community needs. In addition to Telstra s infrastructure investment in regional, rural and remote areas (see Chapter 5 for some examples), Telstra also continues its work on the Telstra Community Phone program, originally started under the Australian Government s 2002 Telecommunications Action Plan for Remote Indigenous Communities (TAPRIC). Telstra Community Phones were developed in conjunction with the Centre for Appropriate Technology (based in Alice Springs) for conditions found in remote Australia. Community Phones are cardonly, housed in stainless steel casing and very robust. Telstra initially deployed 20 of these units on a pilot basis. A total of 270 have been installed in remote communities of the Northern Territory, Western Australia and South Australia with the funding support of the Australian Government through the Department of Broadband, Communications and the Digital Economy as of December PAGE22/49 PAGE 22/49