Issue: 05/08

CDMA Stakeholders Meeting

February 13, 2008

ATUG attended the Minister’s CDMA Stakeholders meeting held in Canberra on Monday to “explore any issues you may have concerning the coming closure of Telstra’s CDMA mobile phone network.” The Minister chaired the meeting, which went from 9am to 1pm.

The background to the meeting was the Minister’s Determination on 18 January 2008 that the CDMA network not be closed on 28 January 2008. Telstra has advised the Minister that it will confirm before the end of March that it has addressed all identified issues, to ensure the network can be switched off by 28 April 2008 provided the Minister is satisfied of equivalence. The Minister anticipates receiving a report from Telstra that comprehensively addresses concerns. The Minister advises that consumers should act on the basis that the CDMA network will be switched off.

The Minister has accepted ACMA’s report which found that the Next G footprint is equivalent to the CDMA network and that Next G coverage using an external aerial was equivalent to CDMA. However, there were issues identified with handheld coverage which Telstra has been asked to address. Another factor in the Minister’s decision to delay closure was a report that some customers have not received appropriate advice on Next G handsets. The Minister has encouraged Telstra to do everything possible including handset replacements to ensure that customers are using the correct Next G equipment.

Stakeholders at the meeting included representatives from consumers, farming, business and government end users, local government, rural doctors, small-to-medium enterprises, aged and child care services, emergency services, disability, and the transport sector. The Minister is also consulting directly with State and Territory governments and federal government agencies.

A number of issues were raised at the meeting, including:
• Handset sensitivity and suitability – Telstra will assist via the Hotline 1800 888 888
• Bluetick – pre-paid and post-paid handsets
• Equivalence for hearing impaired customers – Telstra will look at the issue of Next G handset compatibility with hearing aids
• Options for data users including blackberry users – Telstra is working on options
• “Fortuitous coverage” – Telstra will assist customers via the Hotline
• Turning off CDMA will improve Next G coverage – Telstra says this is NOT their advise and customers with coverage issues should now contact the Hotline
• ACMA report “blacked out” handsets with low sensitivity – Telstra encourages any customer with coverage concerns to contact the Hotline
• Handset cost for pre-pay users – Telstra working to source cheaper handsets for this market segment
• End users should be able to take just a voice package, a data free option is needed for low income users – Telstra will look at this
• The number of customers still to migrate – Telstra would not confirm a number in advance of its Half Year Result announcement later in February
• Number retention after CDMA closure – Telstra will provide a period of one month’s grace from 28th April.
• An independent advocate is needed – the Minister’s Hotline will take calls on 1800 883 488 and will follow up individual cases to monitor the response
• Fire agencies and emergency services are satisfied with the migration to date Some remote areas will require base stations. Volunteers will need to migrate to Next G and any issues can be referred to the Hotline
• In-truck services need further work – the new units of choice will not be available until May at the earliest – Telstra will work with the Industry Association on a solution. Customers can keep their number by transferring to the Next G Country Phone 165 in the interim
• Expansion of Next G along highways – particularly for telemetry systems - Telstra is looking at this through its Capital Planning process
• Indigenous community issues – Telstra is working with communities to resolve all issues
• Need for ongoing information to stakeholders during the last phase of migration – Telstra is happy to keep all stakeholders fully informed. Telstra offered to come and brief Consumer Groups and will provide a monthly update to Stakeholders
• Stock availability – Telstra shops ensure 5 weeks of suitable stock is available
• Emergency service access during switch-off – Telstra will check whether any 000 calls are in progress and is working with Emergency Services to ensure smooth closure
• Advice to customers – Telstra is planning to send an SMS to all remaining CDMA customers one week before closure and at 4pm on the day of closure. Telstra will explore other options to try to ensure all customers are contacted
• After closure Telstra will keep its Hotline open for a period of time

At the meeting Telstra made a number of commitments to keep stakeholders informed of the steps they are taking to address customer concerns including:

Customer Advocates who can be contacted through the Telstra Country Wide Area General Managers to assist customers and communities who are concerned about how Next G compares to CDMA. These Customer Advocates work through the comparison with customers in their locations. 20,000 customers have been contacted to date.
Those customers who have already switched to Next G and who are having trouble with coverage should contact the Telstra Hotline on 1800 888 888. Telstra confirmed that through the hotline process, customers' handsets are being checked and swapped in genuine cases, for no financial penalty. The process of checking is extensive and includes SIM card, phone configuration, software upgrades, like for like accessories (external antenna), handset swap and field visits if needed.

The accreditation program for Telstra and dealer shop staff will begin on February 13th. ATUG welcomes this initiative as an example of good practice for the mobile industry more broadly and will suggest to Communications Alliance that they look at this model. Good consumer information is key to effective choice in rapidly changing markets.

Customers with CDMA Wireless Local Loop services have in large part been successfully migrated. Issues with device over-heating, battery life and call drop-outs have all been addressed now. Telstra believes the Next G platform is now stable. Any customer experiencing difficulties should contact the Hotline 1800 888 888.

Customers with telemetry CDMA applications are encouraged to contact Telstra – either the Hotline or their Account Manager. These services will be more difficult to migrate because they often involve third party devices and applications. CDMA modem/module suppliers have now identified the suitable Next G replacement devices but the issue of updating the application software on the new devices still has to be worked through. Telstra is happy to provide engineering assistance to help customers migrate these services and to follow up after migration. It is important that customers who have telemetry services identify these to Telstra quickly.

Telstra will commission a customer satisfaction survey of Next G Wireless Link customers with the results to be reported to the Minister.

Telstra advised that it would report on progress to the Minister before the end of March.

If the Minister is satisfied that the identified issues have been rectified after receiving Telstra’s next report on 20th March, the network could be switched off by 28 April 2008.

The Minister is keen to form independent views on all the issues raised and any other concerns end users may have. Any stakeholder can provide a submission directly to the Department via NextG@dbcde.gov.au by no later than 11 March.

Consumers who require assistance with Next G services and coverage are urged to contact Telstra on its Next G Hotline 1800 888 888 (free call). The Minister also has a Next G customer support Hotline 1800 883 488. Calls to the Minister’s Hotline are directed to Telstra for resolution and followed up by the Minister’s Department.

Any information which comes to ATUG will be posted immediately at www.atug.com.au for members’ information. ATUG welcomes your views and experiences to share with other members and to refer to Telstra and/or the Minister if needed at further stakeholder discussions. Email lauren.mcginley@atug.org.au