Internet industry jitters over government bill
By Alex Ringis
The Australian internet service industry is concerned about its future, following the passage of federal telecommunications legislation in late March.
The legislation, which passed the Senate without amendment, exempts businesses from time-charged local data calls. However, internet service providers (ISPs) are concerned that the legislation gives Telstra the option to implement so-called "B-Party charges", meaning an ISP could be time-charged for incoming data calls.
Telstra is a major wholesaler to ISPs, as well as a retailer in competition with them. B-Party charges would mean ISPs would have to bear the cost of both wholesale fees and time charges for incoming calls.
Kim Heitman, spokesperson for the West Australian Internet Association, said the recent legislation was a major disappointment. "It appeared we had the situation where the government had conceded that timed data calls were a bad thing, but nonetheless they rejected an amendment that would have precluded them being brought in at some stage in the future", Heitman said.
Heitman said the industry feared Telstra would set wholesale rates at time charges, making its own retail arm, which already sells time charges, more attractive.
"I have absolutely no doubt that Telstra's main and primary aim is to make its time charged internet service more competitive against the flat rate services", said Heitman.
However, in a media release, minister for communications Senator Richard Alston said the government would block any moves to impose B-Party charging.
According to Steve Nason, Telstra corporate affairs manager, Telstra has no plans to implement B-Party charging in the near future.
However, he reaffirmed Telstra's claim that the bill included the mechanism to deal with cases where the network was being used to connect at a one-off cost of 25 cents, then staying on line for long periods. Telstra argued in the Senate inquiry that such abuse could be a major source of network congestion in the future.
An online petition protesting against "the death of the internet industry in Australia" has been set up at http://www.ozlink.net. Telstra's internet home page is at http://www.telstra.com.au.