8 March 2006

MR 24/2006

The Australian Communications and Media Authority has commenced an important review of the way in which telephone companies collect identity information about their pre-paid mobile phone customers.

‘Collection of accurate information about customers of pre-paid mobile telephones is likely to become increasingly important,’ said Chris Chapman, ACMA Chairman. ‘The information is used to populate the Integrated Public Number Database (IPND), an industry wide database of all listed and unlisted public telephone numbers. It can help emergency service organisations respond quickly to time-critical emergencies and also identify people who make hoax calls to the emergency services. The identifying information can also be used to prosecute people who make life-threatening calls and assist law enforcement and national security agencies in their investigations of serious crime.’

As part of the review, ACMA has released a discussion paper, Identity Checks for Pre-paid Mobile Services. The paper notes that the review is occurring because the data being produced by current processes is of insufficient quality and consistency. The paper also outlines potential changes to the identity checking process to reduce industry costs and provide a simpler process for consumers.

Possible changes include removing the identity checking process from retail outlets such as supermarkets and petrol stations and requiring the mobile phone companies to collect and verify identifying information at the time the pre-paid mobile service is activated.

‘ACMA is seeking submissions both on the issues raised in the discussion paper and on the options that have been identified. We need to test the viability of the proposed improvements to ensure that the needs of key stakeholders, including emergency services and law enforcement agencies, and that the concerns of industry and consumers are taken into account,’ said Mr Chapman.

The discussion paper is available on the ACMA website or from ACMA on (03) 9963 6725.

Submissions should reach ACMA by 3^rd April 2006. Submissions may be sent by fax to (03) 9963 6979, by email to cnit@acma.gov.au or by mail to:

Manager
Community and National Interests,
Australian Communications and Media Authority,
PO Box 13112 Law Courts,
Melbourne VIC 8010.

Media contact: Donald Robertson, ACMA Media Manager, on (02) 9334 7980.

Backgrounder

Pre-paid mobile phone services enable users to pay in advance for the costs of their mobile phone calls. As credit is reduced, the user then has the option of purchasing another pre-paid service or recharging their existing pre-paid service through the purchase of further credit.

The alternative to pre-payment is post-payment, which typically involves a fixed-term contract with bills being sent to the customer at regular intervals in the same way as for most fixed line phones.

In 2001-02, pre-paid services accounted for approximately 32.5 per cent of the mobiles market in Australia. At the close of the 2004-05 financial year, pre-paid services accounted for approximately 51 per cent of the 16.5 million mobile services in operation in Australia and represented the major area of growth in the mobiles market.

The strong growth in pre-paid mobile services can be expected to continue, as consumers value having control over their mobile service expenditure and the ability to avoid lengthy contracts. The attractiveness of pre-paid services is also being enhanced as the value-added services that were previously only available to post-paid customers are being extended to pre-paid customers.

Telecommunications Law

Part 4 of Schedule 2 to the Telecommunications Act 1997 requires that carriage service providers contribute to the populating and maintenance of the Integrated Public Number Database (IPND).

The IPND is managed by Telstra as a condition of its carrier licence. It contains customer data including a public number and associated information such as the customer’s name and address and the name of the service provider providing the carriage service. This data may only be accessed and used for certain ‘approved purposes’ such as providing directory services, producing public number directories, and assisting law enforcement agencies or emergency service organisations.

The Telecommunications (Emergency Call Service) Determination 2002, an ACMA Determination made under the Telecommunications (Consumer Protection and Service Standards) Act 1999 that supports the operation of the 000 emergency call service, requires carriage service providers to ensure that the IPND Manager receives correct information about their customers.

Part 14 of the Telecommunications Act 1997 requires carriers and carriage service providers (CSPs) to provide assistance to law enforcement and national security agencies. A vital part of each carrier or carriage service provider’s preparations to assist law enforcement agencies is to maintain accurate records of their customers’ personal details.

The Telecommunications (Service Provider – Identity Checks for Pre-paid Public Mobile Telecommunications Services) Determination 2000 (the Determination) sets out rules that apply to CSPs in relation to the supply of pre-paid public mobile telecommunications services.

The Determination provides for three alternative methods of identity checking:

• a point-of-sale process that requires carriage service providers to collect information about purchasers of pre-paid services, including name and address, at the time the pre-paid service is purchased; or
• a post-sale process that requires carriage service providers to verify collected identity information against a database or from documents seen by the carriage service provider; or
• a process whereby a carriage service provider could comply with an ACMA-approved compliance plan.

In response to increased concerns globally about identity security and the anonymous use of pre-paid mobile phones, a number of countries have announced the introduction of an identity checking regime for pre-paid mobile phones similar to Australia’s. Other countries have announced tightening of identity security arrangements that may be expected to have similar benefits.