The correspondence that started APUMP

Letter from Boyd Munro to Senator Alston 26th January 1997

Dear Senator Alston,

I bought an analogue cellular telephone on the first day they became available (almost 10 years to the day). I have used it ever since, all over Australia as well as in New Zealand, Hong Kong, Bermuda and the USA. It is wonderful.

I bought a digital cellular phone a year or two ago. It is next-to-useless in Australia, and the main use I make of it is in Britain. In Australia it is hopelessly inferior to the analogue phone in terms of where you can use it, and substantially inferior in terms of drop-outs.

Is it really true that the analogue cellular network is to be discontinued? If so please tell me when, what alternatives will be offered, and help me to understand why the better system (from the perspective of the user) is being abandoned in favour of the worse.

Yours sincerely,

Departmental response received 25th February 1997.

Dear Mr Munro

Thank you for your letter of 26 January 1997 to the Minister for Communications and the Arts, concerning the phase-out of the analogue AMPS mobile phone network in Australia. The Minister has asked me to respond to you on his behalf.

It is the Government's policy that competition be encouraged in the provision of digital mobile services. These services are currently based on the GSM standard.

The Government is aware of the potential for disruption caused by the previous Government's policy decision in 1992 to phase out the analogue AMPS network by 1 January 2000. At the same time, it must be recognised that all three mobile carriers (Telstra, Optus and Vodafone) have invested substantial amounts of money in mobile digital infrastructure, and structured their business operations in expectation that the analogue AMPS network will cease by the year 2000.

The Spectrum Management Agency (SMA) has established a timetable for the withdrawal of analogue spectrum, in line with the Commonwealth's agreement with the carriers. The Government recognises that mobile phone users in rural and remote areas will have particular concerns about coverage, and has therefore asked the SMA and carriers to explore options for dealing with this issue.

To address the concerns of rural mobile phone users who currently receive an AMPS service, but who would not necessarily be within the radius of GSM coverage, the Government has obtained the in-principle agreement of the carriers to retaining some AMPS spectrum in certain existing rural planned service areas. This spectrum will be retained until there is alternative technology for the delivery of mobile telephony with a reasonably equivalent quality of service and breadth of coverage [But what about cost?]available in that planned service area.

A review of rural planned service areas will be conducted in 1999 to determine those areas in which spectrum will need to be retained. [That will allow plenty of time for planning things like your phone directory entries, won't it?]

It is expected that normal commercial development of new services and technologies will achieve the desired outcome of providing alternative services to existing AMPS mobile phone users by the end of 1999. [Really? What new services and technologies? If alternative technology did become available at competitive cost, there would be no point in closing the analogue network - the only reson it is being done is to protect digital GSM from competition from better technology!] However, if this does not happen the arrangements for the retention of rural AMPS spectrum noted above would allow AMPS services to be maintained in those areas.

The Minister has asked AUSTEL (the telecommunications regulator) and the carrier to ensure that the public is kept informed of the phase-out. AUSTEL has provided information material to retail outlets for distribution to consumers advising them of the phase-out of analogue AMPS. However the Minister is concerned that people interested in buying AMPS handsets should be told about the AMPS phase-out before they purchase the equipment. The carriers have commenced providing point of sale information on the phase-out.

The cost of digital phones has decreased as the market has become more competitive. The carriers are initiating creative pricing packages over a full range of handphones, connection fees, monthly charges and call charges. Telecommunications industry analysts expect that these prices will continue to fall over the coming years as carriers seek to encourage customers using analogue AMPS to transfer to the digital GSM system.

Both Telstra and Optus also offer satellite based mobile telephone services which cover most areas of Australia. In addition, new satellite-based mobile systems using low earth orbiting (LEO) satellites are currently being developed.[But the handsets are expected to cost $4000, and calls to cost $4.20 per minute. Click herefor substantiation.]

After 1 July 1997, there will be open competition in the telecommunications industry. This environment will provide greater incentives for companies to provide services using the most appropriate technology, which in turn can lead to a greater choice for consumers and greater coverage.

Thank you for bringing this matter to the Minister's attention.

Yours sincerely,


Assistant Secretary, Regulatory Policy Branch,
Telecommunications Industry Division 

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