PARLIAMENT OF AUSTRALIA · THE SENATE
Senator the Hon Jocelyn Newman
SENATOR FOR TASMANIA

27 JAN 2000
Mr W.A

Dear Mr W.A,

Thank you for your letter of 14 January 2000 about the closure of the
analogue AMPS mobile phone service and the introduction of the CDMA
service.

I have carefully noted your comments but would like you to consider some
information about the transition from AMPS to CDMA. I hope this information
Will address your concerns.

What the Howard Government has done

The Howard Government inherited Labor's 1992 decision that the AMPS
network would be shut down by l January 2000. We discovered that Labor
had given legally binding commitments to Optus and Vodafone which made it
impossible to reverse this decision without leaving the Government open to
potentially massive compensation claims.

If Labor's disastrous policy had gone ahead as planned many areas of
regional Australia would have lost their AMPS coverage and got nothing in its
place.

So the Howard Government concentrated on making sure that AMPS would
be replaced with a new network . The Government imposed a licence
condition on Telstra requiring it to replace the analogue AMPS network with
an alternative digital network which provided reasonably equivalent coverage.
In l995 Telstra announced that it would use technology known as Code
Division Multiple Access (CDMA) to construct a new digital network to comply
with the licence conditions.

To make sure that Telstra had enough time to roll out the new CDMA network
before the AMPS network was 'shut down the Government negotiated with
Telstra, Optus and Vodafone to extend the phase out date in some rural
areas.


The transition to CDMA has occurred

At midnight on December 3l the AMPS network was shut down in all
metropolitan areas and in many major regional areas. This represented about
80% of the AMPS network- In all of those areas, the CDMA mobile phone
network is now operational.

The transition to CDMA appears to have gone very smoothly. It has been a
remarkable engineering and organisational effort by Telstra.

However. there have been some complaints that CDMA coverage does not
match AMPS coverage. The Government is carefully monitoring those
complaints, and the performance of the new CDMA network.

Reasonably Equivalent Coverage

Telstra is under  legal obligation to provide 'reasonably equivalent coverage,
and the Government will ensure that the obligations are met.

In l998. the Australian Communications Authority conducted a detailed study
of AMPS coverage, including extensive community consultation. The maps
which were produced as a result of the study set the benchmark - where
those maps show AMPS coverage, Telstra must provide reasonably
equivalent CDMA coverage.

If you feel that you do not get CDMA coverage in an area where you used to
get AMPS coverage, you should call the Australian Communications
Authority's hotline on 1 800 351 135 (You can also call Telstra on
018 018 111.) With, the information it obtains from people who call in ACA will be able
to identify any areas which should be receiving coverage but are not. The
AGA, in consultation with Telstra, will arrange for testing of these areas and
for appropriate corrective action if necessary. Corrective action could include
increasing power to the base station or realigning the direction of the
transmitter. It could also include building an additional base station.

CDMA prices and services

Both Telstra and Optus are offering attractive introductory deals on CDMA
handsets and connection contracts. The CDMA handsets work on both the
CDMA and the AMPS networks, so they can be used in areas that have not
yet been upgraded from AMPS to CDMA.

Telstra's CDMA prices arc comparable to GSM prices and to prices for the of
AMPS service. Handset prices start from $89, monthly access fees from $l0,
air time charges will mirror GSM charges, and Telstra will waive the normal
$65 connection fee for AMPS subscribers transferring to CDMA.

CDMA will offer advanced service such as message bank, call forwarding,
calling number display, and call waiting. In the near future, it will also offer fax 
and data services and other advanced services, such as international roaming.

There is one issue you should be aware of if you have been using a car-
mounted 'booster kit' to achieve extended AMPS coverage. Telstra has
achieved extended CDMA coverage by enhancing the entire network - 
benefiting all users not just those with booster kits. However, this could cause
some initial difficulties for mobile phone users with car-mounted phones who
travel extensively. Telstra can provide more detailed information and advice.

For further information

You can obtain further details of the CDMA rollout by calling Telstra MobileNet
 on 018 081 111 or by viewing Telstra's website www.telstra.com.au 
Information about the AMPS closure can be obtained from the Australian 
Communications Authority hotline on 1800 351 135 or online at
www.aca.gov.au 

As AMPS users have for a number of years known that the AMPS network
would be phased out by the year 2000, no Government assistance is
available for people buying a digital handset to access either GSM or the
CDMA networks. I am aware however, that a number of existing digital
mobile service providers offer special deal to migrating AMPS customers.

I hope that the information in this letter has been helpful.

            Your Sincerely

            Jocelyn Newman