Scott Ludlam (WA, Australian Greens) Share this | Link to this | Hansard source

asked the Minister for Broadband, Communications and the Digital Economy, upon notice, on 21 July 2011:

(1) What studies have been undertaken into the existing use of wireless audio devices in Australia and overseas.

(2) What studies have been undertaken into the future use of wireless audio devices in Australia and overseas.

(3) Will sufficient new spectrum be made available for new device which are compliant with the post-restack environment.

(4) What is the normal ‘lifespan’ of these devices and how many are currently used in Australia.

(5) When will certainty be given to manufacturers, importers, wholesalers, retailers and users of these products as to the new regulatory requirements.

(6) Will there be sufficient timelines for manufacturers, importers, wholesalers, retailer and users of these products to manufacturer and replace existing products.

(7) How and when will existing users be advised that their wireless audio devices will no longer be licensed.

(8) What plans are in place to ‘clean’ the 694-820 Mhz space of existing wireless audio devices.

(9) What is the anticipated costs of these plans.

(10) To what extent would a failure to ‘clean’ the 694- 820 Mhz space of existing wireless audio device use affect expected returns from the anticipated auction of spectrum arising from the Digital Dividend.

(11) How many devices and users are expected to be affected in the 694-820 Mhz space and what is the user profile of these devices.

(12) What percentage of these devices are used by not-for-profit organizations, such as schools and community groups.

(13) What percentage of these devices are used by small businesses and the self-employed, such as small shops, aerobics instructors and musicians.

(14) What is the value of these devices on average and in total.

(15) Are devices still being sold which utilise this spectrum.

(16) What compensation package is envisaged for each category of users.

(17) How and when will the compensation package be delivered.

(18) How many devices and users are expected to be affected in the 520-694 Mhz space and what is the user profile of these devices.

(19) What is the typical frequency agility of the devices currently operating within this spectrum range.

(20) What percentage of these devices are used by not-for-profit organizations, such as schools and community groups.

(21) What percentage of these devices are used by small business and the self-employed, such as small shops, aerobics instructors and musicians.

(22) What is the value of these devices on average and in total.

(23) What compensation package is envisaged for each category of users.

(24) How and when will the compensation package be delivered.

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

The answer to the honourable senator’s question is as follows:

I recognise that wireless audio devices provide a significant service and that there will be ongoing demand for spectrum for these devices.

The reconfiguration of the digital dividend (700 MHz) band has been taking place now for some time, and will continue for a number of years to come. As part of this reconfiguration, the Australian Communications and Media Authority (ACMA) is working with the wireless audio device community, including the Australian Wireless Audio Group (AWAG), to make suitable provision for the operation of wireless audio equipment in the future.

Relocating wireless audio device users and timing

Questions (3), (5), (6), (7), (8), (9) and (10) are about the process and timing for migrating users of wireless audio devices out of the digital dividend band.

While some users of wireless audio devices will have to relocate out of the digital dividend spectrum, it is likely that others will be able to continue to operate in this spectrum after it has been reconfigured. This is most likely to be within the guard bands and mid-band gap i.e. those parts of the digital dividend band that will be set aside for the purposes of mitigating interference. Further technical and engineering work is being undertaken before a final decision can be made on this issue.

It is expected that users of wireless audio devices will be able to continue using the spaces between digital broadcasting services in the broadcasting spectrum below the digital dividend band (that is, below 694 MHz) going forward. The exact frequencies below 694 MHz in which wireless audio devices will be permitted to operate will able to be determined once planning for the reorganisation (restack) of digital broadcasting services, which is necessary to clear the digital dividend spectrum of broadcasting services, is completed nation-wide.

I appreciate the importance of certainty to the wireless audio device community. Once the outcomes of this technical and planning work are known, the ACMA will commence the process of amending the Radiocommunications Class Licence (Low Interference Potential Devices) 2000 (the LIPD class licence) to put the frequency changes into effect.

It is standard practice for the ACMA to communicate upcoming changes to licensing arrangements well in advance of the changes coming into effect, and to provide information to users, vendors and industry bodies to enable them to educate their customers and members about the changes. The ACMA is working to provide the wireless audio device community with sufficient time and information to make the necessary adjustments.

Users of wireless audio devices will have until 31 December 2014 to vacate the spectrum.

Any unauthorised use of wireless audio devices, in contravention of the LIPD class licence, would be open to compliance action by the ACMA.

Impact of migration on the wireless audio device user base

Questions (1), (2), (4), (11), (12), (13), (14), (15), (18), (19), (20), (21) and (22) seek factual information about the wireless audio device user base in Australia, the number of users likely to be impacted by the migration out of the digital dividend band, the user profile of those affected and the costs of migration.

In its submission to the January 2010 Digital Dividend Green Paper, AWAG provided an estimate of the number of wireless audio devices currently using the broadcasting spectrum. It estimated that there were 130,000 devices in operation, with 80 per cent of these thought to be in the digital dividend spectrum range. A consultant’s report attached to the AWAG submission estimated the costs to industry of replacing equipment to be between $80 and $220 million.

However, the extent of the migration required is heavily dependent on individual user circumstances such as their geographic location, existing frequency use and the ability of existing equipment to be re-tuned. The impact on users cannot be properly calculated until the technical and planning work referred to above is completed. At this point in the process the ACMA should then be able to advise users of wireless audio equipment where in the spectrum they will be permitted to operate post-digital dividend. Users can then assess whether their existing equipment is able to operate in the new frequencies.

In the meantime, the ACMA is working to provide the wireless audio device community with sufficient time and information to factor the migration into their planning and equipment purchasing cycles in order to minimise the costs associated with the migration. According to industry, vendors have been moving equipment imports away from the digital dividend band since 2009.

Compensation

Questions (16), (17), (23) and (24) are about compensation for users to assist in meeting the cost of migration.

As noted above, the ACMA is working with the wireless audio device community to make suitable provision for the operation of wireless audio equipment in the future. Technical and planning work is currently underway to achieve this.

The issue of how migration will be managed will be considered in consultation with industry once the outcomes of this work are known.

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Attachment

BACKGROUND

Wireless audio devices operate in the spaces between broadcasting services in the spectrum used for television broadcasting which currently includes digital dividend spectrum. Clearing the digital dividend spectrum will require wireless audio device users to relocate either to specified frequencies within the digital dividend band or to frequencies below the digital dividend band (i.e. below 694 MHz).

Wireless audio devices operate under a class licence. Access to the spectrum is free for these users and they operate on a no interference/no protection basis. Class licences can be varied or revoked by the Australian Communications and Media Authority (ACMA) at any time in urgent circumstances or, in any other circumstance, after consulting with affected licensees.

The Digital Dividend Green Paper, released in January 2010, acknowledged the potential impact of realising the digital dividend on users of wireless audio devices, noting that operators of these devices may have to move frequencies and that there are likely to be costs associated with any move.

The Australian Wireless Audio Group (AWAG), which represents the users of wireless audio devices, estimates that there are over 130,000 wireless audio devices using broadcasting spectrum, with 80 per cent of these operating in the digital dividend spectrum range. According to AWAG users range from churches, schools, sports and community groups and aerobics instructors to high-profile professional users in the film, radio and television production, performing arts, sport and recreation and hospitality sectors. If their devices are not sufficiently agile to retune to the new frequencies, there will likely be costs to these users in the form of equipment replacement costs.

In its response to the digital dividend green paper, AWAG estimated the costs to industry of replacing equipment to be between $80 and $220 million.

DISCUSSION OF ISSUES

AWAG is seeking certainty on where in the spectrum users will be permitted to operate post-digital dividend, and the timing of any moves. It has also raised the prospect of the Government paying compensation to assist users meet the costs of replacing equipment associated with the move. It argues that the Government requires ‘clean’ spectrum (i.e. spectrum free of wireless audio device users) to maximise revenues from the sale of the spectrum. The Department and the ACMA have been working with AWAG on these issues.

Spectrum available for relocation

Users of wireless audio devices will be able to continue using the spectrum between digital broadcasting services below the digital dividend band (i.e. below 694 MHz). However, the exact location of the available frequencies will not be known until planning for the restack is completed. It is at this point in the restack process that channels will have been assigned to each digital broadcasting service and it will therefore become apparent which channels will be available for use by wireless audio devices. The current internal timetable for restacking has planning completed nation-wide by the end of 2012. However, there is still some potential for movement and this timing has not been made public.

While some users of wireless audio devices will have to relocate out of the digital dividend spectrum, it is likely that others will be able to continue to operate in this spectrum after it has been reconfigured. This is most likely to be within the guard bands and mid-band gap i.e. those parts of the digital dividend band that will not be used for mobile wireless communications due to the need to manage interference. Once the ACMA completes its work on the technical framework for the digital dividend spectrum licences it will be able to confirm the feasibility of this proposal. This work is due to be completed by the end of 2011.

Timing of the relocation

Users of wireless audio devices will be required to vacate the digital dividend spectrum by 31 December 2014. To achieve this, the ACMA will need to amend the relevant class licence to change the range of frequencies in which these users will be permitted to operate going forward.

The ACMA’s standard practice is to communicate upcoming changes to spectrum licensing arrangements well in advance of the changes coming into effect, and to provide information to users, vendors and industry bodies to enable them to educate their customers and members about the changes. According to AWAG, vendors have been moving equipment imports away from the digital dividend band since 2009.

As indicated above, definitive information on the availability of frequencies below 694 MHz for wireless audio equipment use will not be available until the end of 2012. From this time, users would have two years to transition out of the spectrum. AWAG has previously indicated that users would need two years to transition.

The Department met with AWAG representatives in March 2011. At this meeting AWAG agreed to develop a work plan and communications strategy for the transition of wireless audio device users out of the digital dividend spectrum. AWAG will be meeting with the ACMA to discuss this work plan on 16 August 2011.

Potential impact of continued wireless audio device presence

It is possible that some users of wireless audio devices could, in contravention of their class licence, continue to operate equipment within the digital dividend band despite changes to the class licence. Any unauthorised use of wireless audio devices would be open to compliance action by the ACMA.

Preliminary studies performed by the ACMA suggest that unauthorised use of wireless audio devices in the digital dividend spectrum has the potential to cause interference to both mobile broadband services and wireless audio systems. Depending on the specific situation, it is possible that simultaneous interference could occur, or that only one of the systems would experience interference. It can be expected that, where wireless audio equipment experiences interference of this nature, users would be further encouraged to vacate the band. The potential for some limited unauthorised use is unlikely to impact auction revenues.

RECOMMENDATION

Whether users will have to move is heavily dependent on individual user circumstances such as their geographic location, existing frequency use and the ability of existing equipment to be re-tuned.

AWAG has undertaken substantial work on these issues, including conducting an economic study of use of wireless audiovisual devices in Australia and case studies of how wireless audio equipment is used by Australian community organisations and business.

However, the number of users that will need to change frequencies and replace equipment, and the costs involved, can only be calculated once it is known where in the spectrum they will be operating post-digital dividend. Users can then assess whether their existing equipment is able to operate in the new frequencies. As indicated above, this is unlikely before the end of 2012.

In order to respond to Senator Ludlam’s questions we have grouped them into key issues and provided a high-level response on each. If you agree to this approach, we recommend tabling the response as set out in the attached.