WORLD TRADE
ORGANIZATIONG/IT/12
17 April 2000
(00-1534)
Committee of Participants on the Expansion of Trade in
Information Technology Products
AUSTRALIAN NATIONAL EXPERIENCE PAPER
Reform of Technical Regulation in the Telecommunications Sector
1. Synopsis..................................................................................................................... ............2
2. Radiocommunications .........................................................................................................2
2.1 Radiocommunications Act 1983 ............................................................................................ 3
2.2 Radiocommunications Act 1992 ............................................................................................ 3
2.3 Development of Standard s-making Arrangements ................................................................3
2.4 Development of Conformity Assessment A rrangemen ts.......................................................4
3. Telecommunications ........................................................................................................... .4
3.1 Technical Regulation unde r Monopoly Operators.................................................................4
3.2 Independent Regulator 1988-1997.........................................................................................4
3.3 Pressure for Further Change ................................................................................................. .5
3.4 The 1997 Telecommunicat ions Refo rms ...............................................................................5
4. Common Regime for Radiocommunications and Telecommunications – A
Summary of Developments...............................................................................................5
4.1 Standards-making ............................................................................................................ ......6
4.2 Management of Conf ormity Asse ssment...............................................................................6
5. Co-Regulation – New Roles for Government and Industry.............................................7
6. Benefits to Users............................................................................................................ .......9
7. Other Lessons Learned........................................................................................................ 9
8. Unfinished Business .......................................................................................................... .10
Annex A: Time line...................................................................................................................... ........11
Annex B : Best Practice for Technical Regula tion - A Preliminar y Statement.....................................12
Annex C : Glossary of  Terms............................................................................................................. ...13G/IT/12
Page 2
1. Synopsis
As Australia moved to a competitive telecommunications structure in the past decade,
responsibility for technical regulation was taken out of the hands of the monopoly carrier and given to
an independent regulator.  Recently the Australian Government, after consultation with industry,decided to move towards greater industry self-regul ation, with the regulator's role being to ensure
adequate safeguards for matters such as health and safety, and protection of telecommunications
networks.
This paper describes the development of Australia's current regime of technical regulation.  It
outlines the stages of development, beginning with a monopoly carrier that set all standards and
conducted all tests, then the transfer of these power s to an independent regulator and, most recently,
the establishment of rules to allow these functions to be largely transferred to industry.
These changes were motivated by the recognition that failure to develop effective technical
regulation could:
- hold back innovation;
- inhibit integration into the world economy;
- fracture the market;
- increase costs;
- confuse consumers;- limit the range of products available on the market; and
- inhibit competition in provision of telecommunications services.
Australia's positive experience has shown that reforming technical regulation has major
benefits for users and industry, including reduction of costs, improved service delivery and enhancedcompetitiveness.  Administrative costs to the Government are reduced and industry efficiency is
improved.
The paper also outlines the series of decisions taken to ensure that Australia's technical
regulation regime continued to have a high level of integrity, maintaining the confidence of
Government, carriers, industry and users.
Progress towards a more open and transparent regime has required extensive industry and
public consultation.  The reform of technical regulation has required careful management to set
appropriately ambitious and achievable targets.
A time line, showing the major milestones in the changes to technical regulation in Australia
is provided at Annex A .
2. Radiocommunications
Before 1983 radiocommunications was regulated under the Wireless Telegraphy Act 1905 .
The monopoly carrier provided most radiocommunications  services in Australia.  The Minister had a
discretionary power to issue licences and an applicant for a licence had no recourse if the licence was
refused.  Licensees were required to use equipment that conformed with technical specifications
developed by the Department.
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A previous publication, Liberalisation of the telecommunications sector: Australia's experience  is
available from the Department of Communications and the Arts website at www.dca.gov.au.G/IT/12
Page 3
2.1 Radiocommunications Act 1983
Pressure for modernisation of radiocommunications law in the early 1980s reflected a
requirement for greater transparency and accountability in the management of the radiofrequency
spectrum as the Parliament of Australia became increasingly critical of administrative arrangementsthat gave unfettered discretion to officials in the handling of matters that affected business affairs.
The Radiocommunications Act 1983  changed the technical regulation regime in several important
ways:
- Where previously the Minister (or delegate) had no obligation to issue
radiocommunication licences, applicants now were entitled to a statement of reasons
if a licence was refused and they could exercise the right to have the decisionreviewed.  This change led to the licensing of independent paging services:  the first
challenge to Australia's monopoly carrier.
- Where previously all operators of transmitters were required to hold a licence, the
new legislation allowed the operators to be covered by class
1 licences, or by complete
exemptions.
- Where previously all receivers were required to be licensed, they could now be
operated without a licence, except where a specific regulation required it (e.g. for
major receive-only earth stations).
- Where technical regulation previously derived solely from the requirement for
licensing (i.e. it was a condition of a licence that equipment complied with particular
technical specifications) standards and conformity requirements became a separate
area of regulation.  Standards could be applied to any radiocommunicationsequipment, whether licensing was required or not.
2.2 Radiocommunications Act 1992
Reforms in the early 1990s continued to liberalise the radiocommunications sector.
Under the Telecommunications Act 1992 , the Spectrum Management Agency (SMA) was
established to provide greater accountability and a better industry and customer focus.  The same Act
allowed the introduction of a spectrum licensing regime (together with an ongoing apparatus licensing
system) whereby the Minister would issue a licence to operate radiocommunications transmitters in a
specified frequency band and geographical area.  This more market-oriented licensing regime was
seen as a necessary adjunct to the introduction of competition between telecommunications carrierswith rival demands for radio frequency allocations.
At the same time, a more flexible radio frequency regime was introduced for setting technical
standards and managing conformity with standards.
2.3 Development of Standards-making Arrangements
From 1983, a process of public consultation was required before developing standards and
frequency plans, even though frequency planning  has always worked within the framework of
International Telecommunication Union agreements.
                                                     
1 A class licence is not issued individually.  It is a general licence that authorises anyone in Australia to
operate a device, subject to the technical and operating co nditions specified in the licence.  For example, class
licences have been issued for citizen band radios, mobile telephones, and radio-controlled models.G/IT/12
Page 4
Until 1992 the Minister had sole authority to se t regulatory standards for transmitters and
receivers, and to establish frequency plans.  Under the Radiocommunications Act 1992 , the power to
make the national spectrum plan and frequency band plans passed to the SMA.  Standards Australia
was charged with the responsibility for developing standards, but standards with regulatory force
could be adopted only by the SMA.
2.4 Development of Conformity Assessment Arrangements
Government laboratories conducted all conformity testing until 1992.With the SMA's move to an increased focus on industry, independent testing laboratories
were established in 1992.  These laboratories (and Government laboratories) needed NationalAssociation of Testing Authorities (NATA) accred itation to ensure that they met International
Standards Organisation standards of competence.  No further regulatory assessment or designation of
testing laboratories was required after NATA accreditation
2.
Suppliers were given responsibility for label ling their products to show conformity with
standards.
3. Telecommunications
3.1 Technical Regulation Under Monopoly Operators
Before competition was introduced in 1991, monopoly operators provided
telecommunications services in Australia.  Until 1975 the Postmaster General's Department (PMG)
provided all domestic telecommunications services and was responsible for technical regulation.  In
that year telecommunications services were corporatised and Telecom Australia became the
monopoly telecommunications carrier of domestic services.  Telecom was also the technical regulatorand:
- set all the standards for terminal equipment;
- tested every device in its own laboratory;
- labelled every device as its own;
- maintained ownership of every handset;
- established all the relevant regulations; and- enforced compliance with them.
3.2 Independent Regulator 1988-1997
The strong powers of regulation that Telecom Australia enjoyed as a monopoly carrier came
to an end when the Government announced in May 1988 that it would introduce competition in the
provision of valued-added services, and in the supply, installation and maintenance of customer
premises equipment and cabling.  To manage these and other changes, the Government announced
that it would create an independent regulator.  This independent regulator, AUSTEL, was given
responsibility for technical regulation, protecting the carriers' exclusive rights, protecting competitorsfrom unfair carrier practices, protecting consumers and promoting efficiency.  The new technical
regulatory arrangements produced the following results:
- A regime of both regulatory and voluntary standards allowed AUSTEL to control
essential requirements for safety, interconnection and network integrity.
                                                     
2 NATA's website is at www.nata.asn.au .G/IT/12
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- Strong consultative processes allowed industry and users to participate in the
development of Australian technical regulations through expert committees and
working groups.
- AUSTEL developed standards through a system of committees and those standards
were then published by Standards Australia (Australia's national standards agency).
- Standards Australia's procedures were used by industry to develop voluntary
standards.
- AUSTEL retained a reserve power to review the technical interface standards adopted
by the telecommunications carriers.
- AUSTEL accredited conformity assessment laboratories and test houses on the advice
of the National Association of Testing Authorities.
3.3 Pressure for Further Change
In the early to mid 1990s there was a growing awareness that the existing technical
infrastructure was approaching a new era because of:
- the globalisation of the world economy;
- deregulation of key sectors in the wider Australian economy;
- the separation of operating, regulatory and policy roles which had once been
combined in the government monopoly;
- increasing awareness of the need for markets to drive standards;
- rapid technological development, shortening product development times;- the blurring of boundaries between services and technologies (including
radiocommunications, telecommunications and information technology); and
- the limited government resources available for management of technical issues.
At the same time a series of reviews of technical regulation signalled the need for change.  A
Federal Government Inquiry into standards and conformity arrangements across the whole economy
recommended a greater role for industry-based standards.
3.4 The 1997 Telecommunications Reforms
 New telecommunications legislation in force from 1 July 1997 introduced a more efficient
and less costly regime geared to open competition in the provision of telecommunication services.The changes in technical regulation were designed  to maintain a high level of integrity while
introducing greater industry self-regulation, lowering administrative costs, and allowing the market to
determine technical network characteristics as much as possible.
The Government worked in consultation with industry to establish a telecommunications
regime that would preserve the integrity of the network and maintain regulatory standards, while
ensuring that consumers would benefit from a deregulated environment in the form of lower prices,
greater choice and better service.
4. Common Regime for Radiocommunications and Telecommunications – A Summary of
Developments
Prior to 1997, telecommunications and radiocommunications legislation regulated technical
issues differently.  In order to promote efficiency and save on administrative costs, the new regimeG/IT/12
Page 6
harmonises these sectors under a common framework3.  The new regulator, the Australian
Communications Authority (ACA), assumed responsibility for the technical regulation of both
radiocommunications and telecommunications4.
4.1 Standards-making
The standards-making regime in Australia has developed through a series of steps:- Before 1975, the monopoly carrier set all standards for radiocommunications and
telecommunications.
- From 1975, radiocommunications standards were set by a separate Department of
State.
- The monopoly carrier continued to set all standards for telecommunications until
1989.
- From 1989, the regulator (AUSTEL and then also the SMA) set all standards through
a system of committees with active industry and user participation.
- Standards Australia, which had a long history of developing non-mandatory standards
was used by AUSTEL to publish its standards.  The SMA began using StandardsAustralia committees to develop standards from 1993.
Now an industry body, the Australian Communications Industry Forum (ACIF) has assumed
responsibility for some of Australia's telecommunications standards activities.  (Standards Australia is
represented on the board and some reference panels of ACIF).  ACIF recommends to the ACAstandards which it believes should be adopted as mandatory
5.  The primary role of ACIF will be to
develop and administer industry technical and operating arrangements that promote both the long-
term interest of end-users and the efficiency and international competitiveness of the Australian
communications industry.  This means making su re that technical standards, industry codes of
practice and support services keep up with industry and community needs.
The ACA manages the national coordination of input to international and regional standards
meetings.  The technical part of this work is now in the process of devolving to ACIF.
4.2 Management of Conformity Assessment
A similar series of changes has occurred in the management of conformity assessment.- Before 1975, the Postmaster General's Department, as regulator and monopoly
carrier, conducted all conformity testing of radiocommunications and
telecommunications equipment.
- After 1975, the monopoly carrier retained responsibility for conformity assessment
and testing of telecommunications equipment, while technical regulation of the radio
                                                     
3 While there is a common framework, separate legislation continues to cover technical regulation of
radiocommunications and telecommunications.
4 The website of the ACA is www.aca.gov.au .  It contains details of many aspects of Australia's
technical regulations.
5 The ACIF website is www.acif.org.au .G/IT/12
Page 7
frequency spectrum, including responsibility for conformity assessment of
radiocommunications equipment, passed to a separate Department of State.
- From 1989, AUSTEL conducted all conformity assessment and testing of
telecommunications equipment.
- Later, the regulators (both SMA and AUSTEL) began to accept test results from other
facilities in Australia.  AUSTEL accredited these facilities directly, while the SMA
required these facilities (and its own internal laboratories) to be accredited by NATA.
- AUSTEL and NATA then began accrediting facilities beyond Australia to conduct
tests, the results of which would be accepted by the regulator.
Confidence established through this experience led to the whole accreditation task being
delegated to NATA.  Government test laboratories are now subject to accreditation on the same basis
as others, to ensure fairness and to encourage the development of competitive testing facilities.
The regulator accepts test results from facilities in other countries that have been
appropriately accredited by agencies with whom NATA has a mutual recognition agreement.
5. Co-Regulation – New Roles for Government and Industry
Since the days of the monopoly, Australia's conformity assessment regime had relied on the
issue of permits for connection of telecommunications terminal equipment to the network.  A similar
system required the issue of certificates of conformity for radiocommunications equipment.  This
permit system, like many similar systems around the world, required action and approval by the
regulator before a product could be placed on the market.  The permit system was costly for
Government, industry and the wider community.  Government was required to maintain an extensiveapprovals administration system which was put under increasing pressure as the pace of technological
change increased.  The time taken to approve products consumed an increasing proportion of a
product's life cycle time, diminishing the benefits gained from new technology.
In response to these problems the Government examined the fundamentals of technical
regulation.  This resulted in two outcomes:
- a move away from pre-market regulation by Government; and
- greater supplier responsibility – reinforced by a more appropriate level of post market
regulatory action by Government.
Under the Telecommunications Act 1997 , the management of technical regulation by the ACA
has entered a phase of co-regulation in partnership with the Australian telecommunications industry.
This system retains some minimal dependence on regulatory action in certain key areas to ensure
certain community expectations in relation to:
- network integrity;
- health and safety;
- emergency service access; and
- interoperability of the standard telephone service.
Electromagnetic interference requirements are also set for telecommunications equipment
using the ACA's broader powers under the Radiocommunications Act 1992  to regulateG/IT/12
Page 8
electromagnetic compatibility6.  The ACA has been able to provide a common approach to
compliance for regulation developed under both Acts.
Importantly, while the ACA still sets regulatory requirements within these specified powers,
it has involved industry in the development and management of compliance to a much greater extentthan previously.
The compliance structure used by the ACA is designed to minimise the cost of demonstrating
compliance and to facilitate market access:  no product registration or compliance charges are paid
and suppliers are not required to submit test reports or products to the regulator.  The most significant
benefit from this process is clearly the faster time to market for new products.
The common compliance arrangements now in force require equipment suppliers to do three
things:
- Make a declaration of conformity :  the declaration of conformity is a supplier's
attestation that the products which they place on the market meet the standards set bythe ACA.  The declaration of conformity is retained by the supplier and held in a
compliance folder .
- Establish a compliance folder :  the compliance folder is a body of documentation
which suppliers must assemble and hold in order to support the declaration ofconformity for any device placed on the market and it includes:
- test reports;
- a signed supplier's declaration of conformity;
- a description of the apparatus, including a photograph;- reference to specifications for conformity; and
- a technical description of the device.
- Label the device :  before a product can be marketed it must be labelled
7.  Labelling
provides a traceable link between a device and the supplier responsible for placing it
on the Australian market – that is the Australian manufacturer, importer or agent for
an overseas manufacturer.  The label comprises two elements:
- a symbol which will be used to promote recognition by consumers of
products that comply w ith the framework; and
- a mark identifying the person responsible for placing the product on the
Australian market.
Under this approach, the Government no longer takes primary responsibility for product
compliance.  That is a matter for the equipment supplier8.  The ACA however retains two critical
                                                     
6 The Electromagnetic Compatibility Framework  is available from the ACA website at
www.aca.gov.au .
7 The Labelling Instrument  setting out the relevant requirements is available in the legislation section of
the ACA website at www.aca.gov.au .
8 If the device does not meet mandatory standards then the person who wants to connect the device
must obtain written permission from the operator of the network to allow the connection.  (The network operatormay allow connection if it is satisfied that connection of the device will not harm the network or people using
the network).  For non-compliant equipment, connection permits are available from the ACA for exceptional
circumstances, such as education or research, testing, demonstrations or defence.G/IT/12
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functions.  Firstly it governs the regulatory framework in which suppliers operate, including the
formal consultations with industry to help manage the process of change and the development of
regulation.  Secondly, it ensures the integrity of the system by conducting post-market audits of
compliance documentation and where necessary by having samples of products tested.
The new approach to standards-setting that underpins the compliance philosophy includes a
commitment to use international standards to the greatest extent possible.  Under the monopoly,
telecommunications equipment standards were developed with particular attention to the needs of the
single carrier.  With the introduction of competition in the supply of telecommunications services, it
has been necessary to re-focus standards work to support a much wider range of interests and a more
open market.
While much of the standards development work has now passed from the regulator to
industry, it remains necessary for the ACA to be an active participant in standards-setting with
industry.  This is particularly true where the AC A has responsibility for maintaining consistency with
international obligations, or where standards may be applied as regulatory requirements.
6. Benefits to Users
While  it is too early to measure fully the benefits of the new technical regulations, it is
already clear that the new compliance regime provides a much faster route to market for new products
than an approvals based system.  The saving in time is of the order of 90 to 120 days and in the
context of diminishing product life cycles this is a major benefit.  A preliminary list of otheranticipated benefits includes:
- reduced cost to Government;
- greater choice of products for consumers;
- greater transparency;- greater accountability;
- enhanced accessibility of services to the consumer;
- enhanced safety for the consumer;
- support for interconnectivity, and portability of services;
- provision of services at competitive prices;
- easier exchange of information;
- facilitation of exports by manufacturing to international standards; and- encouragement of innovation.
7. Other Lessons Learned
Australia's experience in developing the new regulatory structure has highlighted a number of
key issues:
- governments need to give as much attention to technical regulation as they do to
consumer and competition issues;
- with the shift to open competition, it becam e evident that the regulator did not have
the resources to cope with "old style" product testing;
- transition periods need to be handled carefully so that interim arrangements are set up
to facilitate moving from one set of rules to another and, in particular, continuity of
standards and approvals needs to be carefully managed in the transition from one
mode of operation to another;
- industry consultation is essential at each stage;G/IT/12
Page 10
- staff of the regulatory agency need to be made fully aware, in advance, of the issues
involved in moving to self-regulation to facilitate a smooth transition to the new
environment;
- retraining for new roles and functions for regulatory staff is essential, particularly in
support of compliance auditing where a different set of skills are required from thosenecessary to conduct approvals;
- information, advertising and education about the new technical regulations must be
arranged well ahead of time;
- the government policy department and the communications regulator must be
committed to change; and
- reform of technical regulation increases the number of stakeholders including
industry, users, standards-makers and conformity assessment bodies, all of whomneed to be consulted in reviewing the effec tiveness of technical regulation, and in the
exploration of alternative legal frameworks.
The experience of developing and implementing a number of reforms has also lead to wide
agreement on best practice requirements in technical regulation.  These are outlined in Annex B .
8. Unfinished Business
There are still important issues which need to be fully worked out:
- the existing compliance arrangements can be further harmonised to enhance the
benefits of a common compliance regime;
- labelling rules can be streamlined further; and
- as NATA's links with other accreditation agencies expand, for example, through the
Asia Pacific Laboratory Accreditation Cooperation (APLAC) program, and as the
APEC Telecommunications Mutual Recognition Arrangement comes into effect, thescope for efficient and transparent mutual acceptance of test results will expand.G/IT/12
Page 11
Annex A
Time line
Radiocommunications Telecommunications
Wireless Telegraphy Act 1905
Postmaster-General's Department control1901-5 Post and Telegraph Act 1901
Postmaster-General's
Department monopoly
Department of State
(Post and Telecommunications
Department) controls
radiocommunications licensing1975 Telecom Australia established
Radiocommunications Act 1983
A standards and conformity regime is
established separate from licensing, and
decisions are reviewable1983
1989 Telecommunications Act 1989
AUSTEL manages technical regulation.
Competition in value added services and
customer premises equipment
1991 Telecommunications Act 1991
Telecom Australia and the Overseas
Telecommunications Corporation
merge to become Telstra
Limited competition introduced in
common carrier and mobile services
Radiocommunications Act 1992 1992
Spectrum Management Agency
established1993
Radiocommunications Act amended 1997 Telecommunications Act 1997
Radiocommunications and telecommunications harmonised
Open competition in telecommunications
Australian Communications Authority established to manage technical regulation
Australian Communications Industr y Forum established by industryG/IT/12
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Annex B
Best Practice for Technical Regulation – A preliminary Statement
The following is a brief preliminary statement to assist discussion of best practice in technical
regulation in the telecommunications sector.
It makes use of draft material under consideration in the APEC Sub-committee on Standards
and Conformance9 and may be improved by further consideration and discussion.
1. Technical regulatory requirements  in the telecommunications sector should be specified in
terms of performance rather than product design, supported by guidelines containing
procedures by which products may be deemed to comply with standards.  These guidelines
should, wherever possible, include reference to standards of other economies where these
standards adequately fulfil the objectives of the importing economy's regulatory requirements.
Standards, including standards that are referenced in this manner, should be aligned with the
relevant international standard wherever possible.
2. Conformity assessment services , such as test reports and/or certificates of conformity,
should be provided on a competitive basis by duly accredited conformity assessment bodies,such as laboratories and/or certification bodies.
These conformity assessment bodies should be accredited in accordance with international
standards and guides by accreditation bodies operating accreditation programs that are also in
accordance with relevant international standards and guides.
Standards-making bodies should be independent from conformity assessment bodies.
3. Unless the risks associated with a class of goods require otherwise, assurance of conformity
should be provided by way of suppliers' declarations , together with appropriate post-market
surveillance systems, rather than by way of pre-market conformity assessment systems such
as product approvals and licensing.
4. Where appropriate, conformity assessment procedures should be validated by participation in
mutual recognition arrangements  in both the regulated and voluntary sectors.
5. Marks of conformity , where mandated, should indicate that the good and/or service has been
declared by the supplier/manufacturer as comp lying with the mandatory requirements of the
economy in which it is traded.
                                                     
9 The SCSC is a sub-committee of APEC's Committee on Trade and Investment.G/IT/12
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Annex C
Glossary of Terms
ACA Australian Communications Authority
ACIF Australian Communications Industry Forum
APEC Asia Pacific Economic Cooperation
APLAC Asia Pacific Laboratory Accreditation Cooperation
AUSTEL Australian Telecommunications Authority
Conformity Fulfilment of technical requirements
NATA National Association of Testing Authorities
SMA Spectrum Management Agency
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