Australia Yearbook - 2001

Chapter 24—Communications and information technology 833
The final, and most controversial, move towards
an open market in telecommunications came
with the partial privatisation of Telstra in
September 1997. The initial sale, which placed
16.6% of Telstra’s shares on the open stock
exchange, was the outcome of many years of
debate and negotiation. It followed the trend
towards partial sale of public telecommunications
providers that had been taking place
internationally for the last decade. At the time the
decision was highly controversial, and the effect
upon service and competition is still debated
today. However, as a business move alone, the
sale proved highly successful, with Telstra now
ranking as the most valuable telecommunications
company of its size internationally. The sale was
also a financial success for the Government, and
a further 33.3% of the company was sold off in
1999, bringing the privately owned portion of
Telstra to 49.9%.
Looking back—and forward
This gradual move towards open competition in
telecommunications can be seen as merely part
of a general restructuring that has been taking
place across the Australian communications
industry for decades. Media ownership
legislation, particularly regarding cross-media
ownership, has been constantly debated and
amended since 1986. The laws governing
foreign investment in the Australian media and
communications industries have been loosened.
New markets have emerged, with varying
success. E-commerce has become the wave of
the future, with 13% of small and medium
businesses already participating in this new
forum and a further 36% expecting to move
online within the next year. The introduction of
pay television with the launching of Australis
Television in 1995, however, has been far less
successful. For the first time a prominent new
service has failed to be immediately embraced
by the Australian population. Five years down
the track Australis has gone into receivership
and all of the major players that have entered
the market since, including both Telstra and
Optus (now Cable and Wireless Optus), have yet
to show a profit. However, even in the world of
pay television all is not dark; despite poor
economic turnover, the rate of subscription
takeup is actually quite high compared to
international historical standards.
For the moment, the communications industry
in Australia continues to grow at an increasing
rate. Since its complete deregulation in 1997
over 30 players have entered the
telecommunications market. Australia has one
of the highest levels of mobile telephone
ownership in the world, and is second in
Internet takeup rate only to the United States.
And growth does not look like stopping.
Australia is still rapidly embracing new
technology, with mobile telephones going
exclusively digital this year and digital television
to be introduced next year. Controversy still
continues—the debate over the form the new
digital television system will take has been
running for years. However, this is inevitable if
growth is to continue. Australia has developed
into a world leader in communications
industries and will continue to develop as the
new century progresses.
The communication services
industries
The communication services industries
encompass telecommunication services, and
postal and courier services. These industries
comprise the Communication Services Division of
the Australian and New Zealand Standard
Industrial Classification (ANZSIC).
The telecommunication services industry is made
up of businesses mainly providing
telecommunication services to the public by wire,
cable or radio. The primary activities of the
industry include cable and communication
channel services, network communication
services, operation of radio relay stations, satellite
communication services, telecommunications,
telephone services, teleprinter and telex services,
and operation of television relay stations.
The industry excludes businesses which
manufacture telecommunications equipment,
businesses engaged in cable laying and
transmission line construction, and those
providing secretarial services (e.g. personalised
telephone answering services or message delivery
services). Also, the ABS classifies the provision of
radio and television services (as distinct from the
operation of radio and television relay stations) as
part of the Cultural and Recreational Services
Division of the ANZSIC. Information on radio and
television broadcasting, including the role of the
National Transmission Agency, the Australian