ACMA outlines 2016–17 research plan

In 2016–17, the ACMA will continue to consider a wide range of matters, including spectrum management and market forces.

The ACMA recently released its 2016–17 research update, outlining its areas of interest and concern as a function of government legislation, and the study efforts it is pursuing in those areas.

According to the update, the research focus “is consistent with the ACMA fulfilling its regulatory functions outlined in the Australian Communications and Media Authority Act 2005 (the ACMA Act) and legislation related to the ACMA’s telecommunications, radiocommunications and broadcasting and internet functions”.

Those functions require the ACMA to:

• report to and advise the minister in relation to the telecommunications industry and on matters affecting consumers or proposed consumers of carriage services;
• make available to the public information about matters relating to the telecommunications industry;
• monitor and report to the minister each year on significant matters relating to the performance of telecommunications carriers and carriage service providers;
• report to and advise the minister in relation to the radiocommunications community;
• make available to the public information about matters relating to the radiocommunications community.

The update notes that many current technology, content and service developments, both in Australia and around the world, indicate a more highly connected and internet-enabled environment.

“The communications and media sectors have already seen the mass connection of individuals, businesses and other service providers, with the rapid development of digital technologies and services driving an increasing fragmentation across industry sectoral boundaries and consumer and citizen behaviours,” the update says.

The update further notes that these developments “continue to place considerable pressure on existing regulatory interventions that were designed as solutions for a different environment”.

Occurring in parallel to these internet-enabled developments are a range of complex regulatory transitional issues. In telecommunications, as the National Broadband Network (NBN) rollout proceeds, there remains significant transitional work to rationalise telecommunications regulatory structures, particularly the heavy emphasis on fixed-line consumer regulation.

The update comments that there are also technical standards issues requiring industry standards development or underpinning regulatory determinations. “Research will assist the ACMA in understanding the impact of technology upgrade and migration issues on industry and consumers, including where regulation needs updating to support innovative services.”

As far as spectrum matters go, the update explains: “In spectrum management, the increased demand pressures for spectrum allocations to support the needs of every sector of the economy will need to be managed at the same time as the Spectrum Review recommendations are implemented, itself an extensive body of work. Research and analysis will inform the development of new licensing, allocation and pricing models for reformed spectrum management arrangements.”

In terms of the ongoing implementation of the Spectrum Review recommendations, the update says: “Research and analysis will support the development of more market-orientated allocation and pricing models and draw on international better practice regulatory models, as well as continuing to anticipate spectrum demand arising from technology developments.”

It further notes: “The intensifying pace of connectivity fostered by the Internet of Things (IoT) that connects devices, people and data [is] influencing demand for public resources like spectrum as well as the development of standards to support network and personal information integrity.”

Areas of research focus

The ACMA’s research areas include market developments, social and economic participation, media content and culture, and citizen and consumer safeguards. But the area of most interest to the critical communications field is the one concerned with regulatory best practice and fulfilling the ACMA’s functions as an effective and efficient regulator. This involves:

• advice to government about the operation and costs of regulation;
• regulatory and program design, including the development of non-regulatory solutions to emerging issues in communications and media;
• analysis of whether to regulate, influence through communication and facilitation, or initiate discussion about regulatory reform to accommodate innovation occurring in the sector.

In the area of market developments, the ACMA’s research focus looks at “conditions in contemporary communications and media. It has an emphasis on market developments, regulatory policy settings, the interventions needed to support efficient use of public resources (such as spectrum and telephone numbers), and the quality of service experienced by Australia’s digital citizens.”

It also “continues the ACMA’s priority work to support spectrum initiatives, in particular the implementation of spectrum reforms”.

Specific strategic questions explored through individual ACMA research projects include:

1. How can regulatory decision-making support market-based approaches to spectrum management?
2. What are the key approaches to the valuation and pricing of spectrum?
3. What are the consequences of changes in market structures and business models for planning and resource allocation and regulatory settings?

Spectrum matters

One of the ACMA’s chief areas of research is that of determining the highest value use of spectrum. The update says that “Consistent with the ACMA’s Mobile broadband strategy, this research will estimate the highest value of use for spectrum bands that are identified as being under consideration for mobile broadband use. It is expected that in 2016–17 the ACMA will release preliminary and comprehensive determinations of the highest value use for the 1.5 GHz band. This research has previously been identified in the ACMA’s Five-year spectrum outlook 2015–19.”

The ACMA is also charged with considering the reform of pricing and licensing arrangements associated with the Spectrum Review. The update notes that the regulator’s “research will develop a framework for considering when private band management arrangements could be optimally used”.

The project will “undertake research to inform the licence renewal process framework (that is, whether to renew administratively and approaches and processes for determining price, or to reallocate via competitive auction), taking account of international best practice regulatory models”.

The update notes that, having taken into account the recommendations of the Pricing Review and refreshed the principles for spectrum pricing, the ACMA will:

• apply these to refresh the general formulas for setting spectrum access charges for all spectrum bands and services;
• consider the framework to allow licensees to self-select licence duration and the incentives needed to encourage efficient use of spectrum.

The research will include analysis of best practice auction methods and updates to section 60 auction rules.

Regulatory best practice and development

Finally, as noted above, a major focus for the ACMA is a continuing analysis of the “effectiveness, costs and benefits of current regulation. It includes identification of emerging issues and problems that may require regulatory or non-regulatory solutions, and where regulation may be adapted to address contemporary communications and media issues.”

Key questions the regulator is exploring are:

1. What are the costs and benefits of specific regulatory and non-regulatory interventions?
2. What are the best practice design solutions for communications and media regulatory settings?

The ACMA is also investigating specific approaches to risk, whereby it “will consider a range of scenarios where a different range of regulatory approaches (from direct to ‘hands-off’) could be required. This research will support the ACMA’s ongoing evaluation of its role as regulator, identifying potential improvements to regulatory decision-making processes and desirable intervention levels for direct regulation.”

This research has previously been identified in the ACMA’s Five-year spectrum outlook 2015–19 and “supports the ACMA’s role in implementing the reforms outlined in the Spectrum Review”.