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AUSTRALIAN GOVERNMENT REVIEWS AMPS RURAL COVERAGE

MELBOURNE, Australia-The Australian government has called an urgent review to end speculation about the future of analog mobile phone coverage in regional and remote areas of the country. The analog system, based on the AMPS (Advanced Mobile Phone Service) standard, was earmarked for closure in 1991 after the government chose GSM (Global System for Mobile communications) digital as the preferred mobile phone system.

Of the three carriers in the Australian market, Telstra and Optus Communications both offer analog service; however, Optus resells analog calls using Telstra’s network. These two carriers, in addition to Vodafone Group plc, offer GSM services.

“The government is put in a very difficult position in relation to the phaseout of analog coverage,” said Senator Richard Alston, Australia’s Minister of Communications, the Information Economy and the Arts, in announcing the review. “It’s a policy we inherited from our predecessors. In many respects, it’s one of the biggest dead cats in history, and we’ve got to make the most of what we’ve got.

“Our commitment is to ensure that wherever the analog mobile service is withdrawn, that it should be replaced by a reasonably equivalent quality of service and coverage of digital or alternative technologies.”

The Australian Communications Authority (ACA) is charged with identifying the areas of regional Australia that likely need to retain analog service. The ACA must report its findings to Senator Alston by 30 June. If necessary, the minister may impose additional GSM network-rollout obligations on each of the three digital mobile phone carriers. This can only be done in consultation with the carriers.

Previously, the AMPS network was scheduled to close by 1 January, 2000. The government had stated it would review regional coverage during the final phaseout of the AMPS network in late 1999, but brought the review date forward after growing concerns among regional communities.

In response, Telstra has cautioned the government against closing down too much of the AMPS network, saying it would leave the carrier unviable and unable to sustain a reasonable continuity of service for its customers. The ACA can allow up to 5 megahertz of radio spectrum to remain open for regional use.

“If the whole of the residual (AMPS) network was kept open, then this could be commercially viable,” said Greg Young, Telstra’s AMPS and new business product manager. “Of course, it is subject to the distribution of people, how many sites there are and what distances are involved. The best scenario for Telstra is where we have a network that is commercially viable and gives country users a reasonable continuity of service.”

In the event of any revision to its GSM rollout obligations, Young said Telstra would be “reluctant to make uneconomic investments.”

The government has reaffirmed that Telstra’s AMPS service would end in metropolitan areas after 31 December, 1999. The two tranches in the 800 MHz frequency range withdrawn to date were auctioned in April and are likely to be used to support either a CDMA (Code Division Multiple Access) or digital AMPS network.

The ACA also is charged with educating the public about closure of the AMPS cellular networks. According to the campaign’s project manager, Warren Duncan, one of the key aims of public education is to encourage analog mobile users to migrate to GSM networks.

Both Telstra and Optus say the migration of customers so far is proceeding as planned.

Last October, Telstra announced that its GSM network coverage reached more of Australia’s population than its analog network. Just a few weeks later the Australian Communications Authority announced that its July figures showed total GSM subscribers for all three carriers overhauling those for analog. And by the end of last year, the ACA reported there were 3 million GSM customers in Australia compared with only 2.1 million AMPS customers.

Telstra announced in March that it had, for the first time, more GSM customers than AMPS customers. Telstra wouldn’t break its 3 million customers down by technology, but Young said that traffic on its AMPS network was half of its peak.

All three digital carriers must agree to the continued operation of an AMPS service.

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