Wednesday 15 July 2015
The Regional Telecommunications Independent Review Committee
Submission by email to:
secretariat@rtirc.gov.au
Review to consider the adequacy of telecommunications services
in regional, rural and remote parts of Australia
Submission from RDA Hunter
Regional Development Australia (RDA) Hunter welcomes the opportunity to make a submission
to the Independent Committee conducting a review to consider the adequacy of
telecommunications services in regional, rural and remote parts of Australia.
The following brief overview of RDA Hunter and the region is provided to help set the context
for this submission.
RDA Hunter
RDA Hunter is an economic development organisation for the Hunter region of NSW, funded
primarily by the Australian and NSW Governments. Additional funds are derived through project
grants, visa processing fees for employer nominated skilled migrant workers and contributions
from regional partners. Our activities, programmes and initiatives support the strategic themes
of infrastructure, innovation and investment to deliver economic development for the Hunter.
The RDA Hunter Committee is representative of the region’s leaders from industry, business,
education, local government and community groups. RDA Hunter leads initiatives and works in
partnership with local stakeholders to deliver:
•
•
•
•
•
Economic growth and Productivity gains;
Jobs and a Skilled Workforce for the future;
Federal and State agendas at a regional level;
A single voice for Australia’s most productive region; and
Independent and impartial advice directly to governments.
RDA Hunter – submission
Review to consider the adequacy of telecommunications services in regional, rural and remote parts of Australia.
1
The Hunter – A Region of Economic Strength
The Hunter is located north, north-west of Sydney and contains 11 local government areas:
Cessnock, Dungog, Gloucester, Great Lakes, Lake Macquarie, Maitland, Muswellbrook,
Newcastle, Port Stephens, Singleton and Upper Hunter Shire.
The vision is a region that continues to grow and be recognised nationally and internationally
for high quality products and services, well-connected liveable places and a collaborative
business culture that supports innovation to deliver Australia’s largest regional economy.
The Hunter is the major region for economic activity in New South Wales:
• Gross Regional Product for 2013 of $38.5 billion, – Australia’s largest regional economy;
• Contributing more than 8 per cent of Gross State Product and 2.6 per cent of GDP;
• A population of 651,000 in 2012; projected population of at least 735,000 by 2030;
• In 2013-14, the Port of Newcastle’s total trade value was $15.5 billion from 159.6 million
tonnes in throughput, including 154.4 million tonnes of coal exports, and
• Producing upwards of 60 per cent of the electricity for the State of NSW.
RDA Hunter commissioned Deloitte Access Economics to analyse economic data and report
on possible impacts of various trends and scenarios on the future of the Hunter. In Prospects
and Challenges for the Hunter Region – a strategic economic study1 it is forecast that by 2036,
the Hunter’s economy will have grown by about 75 per cent, to be delivering a Gross Regional
Product of $64.8 billion.
Despite being widely known as a major centre for mining and resources with a history of largescale heavy industry, it is the small and medium enterprises (SMEs) sector which constitutes
the majority of businesses in the region. Major projects in the mining and resources sectors
impact on the Hunter’s labour market and the ability of SMEs, as well as farming, viticulture and
thoroughbred breeding enterprises to attract and retain skilled workers.
There is an uncomfortably high level of youth unemployment in the Hunter even though the
amount of economic activity and overall output from the region appear to be strong. The
Hunter’s positive economic development will be built on the region’s capacity to:
• grow through the attraction of investment and talent;
• continue to benefit from its comparative advantages;
• build smart partnerships that overcome challenges and commercialise opportunities; and,
• maintain a diversified economic base of internationally competitive businesses.
The emergence of a mobile-only population. In the Hunter, 28 per cent of residents surveyed
in 2012 planned to replace land-line phones and internet connections with mobile only services
at home.2 Searches for more recent data specifically for this cohort and the Hunter more
generally have been unsuccessful to date.
1
2
The Deloitte Access Economics report is available at: http://www.rdahunter.org.au/ under ‘Initiatives’.
Hunter Valley Research Foundation, 2012: Information and Communications Technology Use in the Hunter
RDA Hunter – submission
Review to consider the adequacy of telecommunications services in regional, rural and remote parts of Australia.
2
However, there is evidence that the appetite for mobile data is growing. Telstra Country Wide
Hunter Central Coast Area Manager Chris Cusack recently reported: “… we have seen
sustained growth for data, for some time now, that is doubling every 12 months.”3
In response to the Issues Paper, this submission commences with some recent findings
regarding Hunter businesses and broadband.
The broadband experience for Hunter businesses
During August and September 2014, RDA Hunter surveyed 84 local businesses regarding the
role of broadband in their day-to-day professional operations.
Broadband is essential to Hunter businesses
Without broadband:
 100% of businesses advised us that they either cannot operate at all, or, could function but
with significant limitations.
 97.5% of businesses (82 out of 84) in our survey have websites.4
Top 3 broadband issues for Hunter businesses
1. High Cost: 65% of businesses surveyed have elected to pay more to increase broadband
speeds ($600 to $6,000 per month)
2. Slow Upload Speeds: 57% of businesses are regularly frustrated by time delays for file
transfers.*
3. Poor Reliability: 49% lose internet connection on average at least every day for 20 minutes
per person per day. Businesses reported that the delays could be for a range of times from
10 minutes to 2 hours at any time of the day.
*
Real solutions implemented by local businesses to resolve issues of reliability and slow speeds:

Two (2) computers per employee, so that work continues while a file uploads.

Reluctantly decline work due to the file upload time making it impossible to meet the project
deadline.

Multi-site company installed optical fibre at all of its locations across the region.

Pay for higher quality: cabling, hardware and service delivery via wireless or optical fibre.
Businesses invest to access reliable broadband – partnership funding model
Businesses pay more for a service that meets their needs rather than lose customers, or have
employees waiting for file exchanges, or reducing the quality of products and services to a
standard determined by the capacity of standard broadband.
These business owners expressed their displeasure at having to meet all of the additional costs
to receive a broadband service that enables them to run a nationally and globally competitive
business.
A funding model that did not place the whole burden onto private enterprises would be a
welcome incentive for more businesses to improve the reliability and speed of the broadband
3
http://www.maitlandmercury.com.au/story/3114975/maitland-has-huge-appetite-for-data/
4
Hunter Research Foundation, June 2014: 57% of companies have a dedicated website
RDA Hunter – submission
Review to consider the adequacy of telecommunications services in regional, rural and remote parts of Australia.
3
service they require to remain viable. There are numerous models to consider, including copayments, low interest loans, additional tax exemptions, priority and tailored installations and
the like to deliver the best possible broadband service to where it is most needed.
Priority employment growth areas in the Hunter needing better broadband
 Steel River Industrial Estate, postcode 2304
 Tomago Industrial Park – declared a State Significant Site, postcode 2324
 Williamtown Aerospace Business Centre, postcode 2318
RDA Hunter has convened a broad-based group of businesses, local governments and
telecommunications service providers to:
 assist the communication of accurate information regarding the availability of broadband
infrastructure in the Hunter; and
 increase the preparedness of businesses and public service providers, including health and
education, to take full advantage of the opportunities presented by broadband.
Hunter businesses are preparing for high speed broadband that will enable:
















Improved access to new markets and a larger customer base
Investment certainty to support long-term commitment to the region
Production of final quality work, especially design, film, television, music and architecture,
to occur at remote locations
Performance monitoring of people and systems in real time
Faster delivery of goods and services
Innovation through online collaboration, information sharing and strategic partnerships
Confidence to meet the demands of 24/7 operations
New channels to be unlocked, such as social media
Enhanced website and e-commerce activities
Supply Chain improvements
Adaptation of a wider range of Cloud based services
Greater use of cheaper telephone operations through VOIP technologies
Improvements to data storage and access
Secure back-up of data and systems
Free Wi-Fi to be part of the overall service package to customers
Customers to access information enhancing interactions with services on websites.
Telephone services
In a submission to the Department of Communication in 2014, RDA Hunter expressed support
for the policy and programme to fund Base Stations to address mobile black spots, “in the
expectation that this will support economic growth through the delivery of benefits to residents,
businesses, service organisations and visitors.”
We gratefully observe that four (4) of the seven (7) areas identified in our submission have
received funding for Base Stations. These places in the Hunter are: Jerry Plains, Stanhope,
Laguna and Paterson.
RDA Hunter – submission
Review to consider the adequacy of telecommunications services in regional, rural and remote parts of Australia.
4
These new base stations will be welcome in the areas they serve. It is difficult to see how the
goal for telephone coverage can be anything less than 100% for the entire nation.
Disruption of Business-As-Usual
As the heat of summer and the risk of bushfires subsided, emergency services were warning
the community to stay alert and prepared. On 10 April, 2015, ABC Radio reported that Lake
Macquarie City Council would be staging their inaugural Emergency Services Expo in
conjunction with the State Emergency Service (SES), Rural Fire Service, Police, Red Cross
and Fire and Rescue NSW.5
During the broadcast, Amanda Hyde, the community engagement coordinator for the Hunter
region's SES crews, pointedly said: "We may be at the end of the summer storm season,
however we do have east coast lows that commonly occur in the winter months. We need to
still be prepared throughout winter for large-scale storms, which can also result in flash
flooding.”
In the late afternoon of 20 April, 2015, strong winds and heavy rain associated with a
notorious east coast low began hitting the Hunter. The Bureau of Meteorology issued
warnings for the region, including a severe weather warning for damaging winds, and a
marine wind warning. A flood watch was also issued as a 'heads up' for possible flooding in
parts of the region, including the Hunter and Manning valleys.
By the morning of 22 April, 2015 stories of devastation after the storm inundated urban, small
town and remote areas of the Hunter were being shared. Conditions were described as
"cyclonic" and wrought havoc on the Hunter, Sydney, Central Coast and Illawarra regions with
wind gusts in excess of 135 kilometres per hour and heavy rain. In some parts of the Hunter
over 310mm of rain fell in less than 24 hours.
Emergency services described the weather conditions as "devastating and relentless".
Some suburbs and towns were without water. Early indications were that at least 225,000
Hunter homes were without electricity. An uncertain period of waiting for the phone lines to be
back up had commenced.
There were thousands of calls to 000 for help and emergency services were stretched to the
limit as they tried to respond to the disaster. Bridges and roads were inaccessible. People
and whole towns were cut off. Almost 100 people have been rescued from floodwaters.
Within the first 24 hours, emergency services responded to more than 10,000 calls for help as
a result of flash flooding, fallen trees and downed power lines. Farmers moved animals to
higher ground, where they could.
Community togetherness and counting of blessings was a common theme. This wasn’t new
for the Hunter, but the use of social media to share experiences was a new development. In
particular, some Facebook posts from Dungog made people draw breath, feel horrified and at
5
http://www.abc.net.au/local/stories/2015/04/10/4214057.htm?site=newcastle
RDA Hunter – submission
Review to consider the adequacy of telecommunications services in regional, rural and remote parts of Australia.
5
the same time, strangely fortunate. Likewise, the organiser of the Facebook page ‘‘Residents
of Gillieston Heights’’ called on the Army or Red Cross to help. ‘Gosh we need some
organisation here, red cross, army??’
Lives were lost.
Dungog Shire Council Deputy Mayor Tony McKenzie said the town was "very quiet and
sombre".
The SES encouraged people to stay home for a few days. Most public schools were closed.
All Catholic schools were closed. TAFE and university campuses were all closed. And
evacuation centres were set up.
After two and half days of intense storm activity, emergency services were still receiving 500
calls an hour and power was out at tens of thousands of homes.
Telstra manager for the Hunter Central Coast Chris Cusack said the flooding had washed
away one of their optical fibre cables. A temporary mobile tower was airlifted by helicopter to
Dungog and up and running as quickly as possible.
Six weeks after the deadly super storm wreaked havoc in New South Wales, thousands of
Hunter homes and businesses were still without landline telephone services.
On 5 June 2015, the federal union representing police officers said the Hunter super storm
highlights the need for a dedicated mobile phone network for emergency service workers.6
The storm wreaked havoc on landline and mobile phone services. Some people and
businesses were without phone lines for weeks. “The Police Federation of Australia (PFA)
used a submission to the Productivity Commission to push for Public Safety Mobile
Broadband (PSMB) to be delivered via a dedicated spectrum.
The PFA's CEO Mark Burgess said phone services are crucial during emergencies.
"The Police Federation used the Hunter example in our submission to the Productivity
Commission," he said. "We're clearly aware of a number of the issues that arose up there
with mobile communications.
"And you could imagine that, if police were completely reliant on the telco services, then we
would be in the same situation as the rest of the public, and that would have put many many
lives at risk."
Mr Burgess said natural disasters are on the rise, and police want assurances their phones
will work in emergencies. "What we're saying is that public safety needs something dedicated
specifically for them," he said.”
By the 10th of June, Telstra was still working to restore phone and internet services to Hunter
and Central Coast customers. That is, seven (7) weeks after the super storm struck the
regions. Telstra reported that almost 1,000 cables have been repaired since the April storm
and 200 extra technicians from outside the regions are helping local crews.
6
http://www.abc.net.au/news/2015-06-05/super-storm-highlights-need-for-emergency-phone-network3apoli/6523546?site=newcastle
RDA Hunter – submission
Review to consider the adequacy of telecommunications services in regional, rural and remote parts of Australia.
6
The damage to the phone network in the Hunter was on par with the devastating cyclone Yasi
in Queensland in 2011. Being prepared for the potential impact of natural disasters on
regional telecommunications services is an imperative for the nation.
Further information
On behalf of RDA Hunter, thank you again for the opportunity to contribute to the review and if
the Committee has any questions or would like further information, please call me or send me
an email.
Yours sincerely,
Todd Williams
Chief Executive Officer, RDA Hunter
on behalf of the RDA Hunter Committee
RDA Hunter – submission
Review to consider the adequacy of telecommunications services in regional, rural and remote parts of Australia.
7