Objective
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The overall objective of the IMR Standard is to meet the terms of the Australian Communications and Media Authority (International Mobile Roaming Industry Standard) Direction (No. 1) 2012.
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To meet this objective the ACMA will create an IMR Standard focussed on three key initiatives identified in the Direction:
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Providing users of IMR services with easily understood information about the services while they are overseas
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Allowing users of IMR Services to stop using IMR services, at anytime, cheaply and easily
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Enabling consumers to better monitor and manage their spending while roaming overseas.
Options
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As the ACMA has been directed by the Minister to make a Standard, it has no discretion regarding the mechanism for regulation. This effectively excludes the status quo as a feasible regulatory option from the ACMA’s perspective. Accordingly, the RIS has considered three feasible regulatory options in relation to the provisions to include in the Standard. However, the status quo as presented in the problem section is used as an analytical baseline for assessing the relative costs and benefits of the three feasible regulatory options. This is undertaken in the impact analysis section.
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The ACMA notes that all three options require incremental change to the existing voluntary initiatives by industry and build on the approaches already being taken by many providers. Consequently some of the cost in complying will have already been absorbed by the providers. An education program about the risks of IMR and available alternatives to IMR will be undertaken by the ACMA, irrespective of the option chosen.
Option 1 – Minimal requirements under the Direction -
The Ministerial Direction requires that the ACMA set minimum requirements for providers to give consumers information on arrival at an overseas location about the charges applicable for IMR at that location, in addition to allowing consumers to decline the continued provision of those services at any time while at that destination.
This means the following consumer protection measures would be mandated under the Standard:
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MNOs to send on-arrival notification that the customer is roaming to all consumers on their network;
b. Communication Service Providers (CSPs), which is all MNOs and MVNOs, to give consumers charging IMR information on arrival at an overseas destination;
c. communication systems to be established between first and second providers so that charging information can be communicated to customers of MVNOs;
d. all consumers must be able to opt-out of roaming services at any time at an overseas destination.
Option 2 –Extensive requirements for alerts and spend management tools -
This option involves systems development well beyond the requirements in both the Minister’s Direction and the TCP Code, and introduces new approaches to spend management tools.
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It is designed to provide consumers with the maximum amount of information possible, including spend alerts for voice, SMS and data usage while overseas. The timely provision of information and alerts are seen as a key component of mitigating Bill Shock.
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Spend management tools in this option involve providing real-time estimates of all customers’ usage and expenditure for voice, SMS and data. Specific requirements involve the elements described in Option 1 above plus:
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Alerts for pre-paid customers when they have reached specified percentages of their credit;
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Requiring consumers using post paid data packs to opt-in to an additional data pack or lose service; and
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Providing spend alerts each time consumers reach $100 expenditure for their services.
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Actual cost information would be provided on arrival overseas in a specified format. This would require providers to provide personalised pricing information to each customer.
Option 3 – Multi-tiered approach -
This approach involves establishing the consumer protections as prescribed in the Direction with further measures as allowed for under the discretionary elements within the Direction. This option also takes account of the ACMA’s own research as well as the feedback gathered by the ACMA during consultation.
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This approach focuses on seven significant consumer protection measures as follows:
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A notification via SMS to be sent to all consumers upon arrival in an overseas destination, warning them that significantly higher charges for using IMR services will apply.
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A notification via SMS to be sent to all customers of CSPs that are also network providers (and at a later date all CSPs), giving them pricing information for using a range of IMR services, including services that would normally be free in the domestic market (such as receiving a call on a mobile device).
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Providing customers with the ability to decline the use of IMR services, at low cost, at any time (including from an overseas location).
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Available spend management tools for IMR services must be explained to customers.
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Usage notifications via SMS must be sent to customers, for data usage only (except for included value packs that include voice and SMS). These notifications are required for AUD$100 increments for data usage and notifications at 50%, 85% and 100% of included value in the event a customer has purchased an included value pack from their service provider.
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When an included value pack is exhausted, suppliers must notify customers of the charging arrangements for continued use of IMR services. Pre-paid services are excluded from the requirements for spending notifications and spend management tools unless they are automatically topped up.
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Delayed implementation (12 months after Standard takes effect, i.e. 23 August 2014) for the requirement of the MNOs to notify the second or subsequent CSP (MVNO) when a customer activates a mobile/SMS capable device. Delayed implementation to 23 May 2016 for MVNOs for to provide on arrival cost information and usage alerts to consumers, with MVNOs to provide pre-departure information until that time.
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