1. TELECOMMUNICATIONS NUMBERING Susan Horne Project Officer International Training Program 8 September 2006

2. The importance of numbers Why have telephone numbers? – still required by many telephone companies – equitable access is important in competitive environment How are they used? – telephone companies— routing, charging and termination point information – customers—service and charging information – customers—identify a location

3. Framework for managing numbers Australia – the legislative framework – informal ACMA numbering policies – industry self-regulation (eg codes) Other – ITU Recommendations

4. Management principles Consumer protection – ensure charging and location information can be obtained Safeguarding competition – ensure all telephone companies can access numbers of similar type Efficient use of numbers – ensure existing numbers are used before additional numbers are provided – minimise number hoarding

5. Methods of managing numbers Automated – INMS electronic system Administrative – paperless Online Numbering System – paper-based system Market-based—to be discussed in next presentation

6. Challenges Need for adequate numbering capacity – Existing and future services Appropriate rules for managing numbers Forecasting demand for numbers, especially geographic numbers Accommodating new and emerging services

7. Annual numbering charge Collect $60 million annually Imposed in April of each year Imposed on holders of numbers Maximum charge $100,000 per number Use opportunity cost model – Shorter numbers are more valuable Some numbers are exempt

8. smartnumbers®: Allocation of numbers via auction September 2006 Harin Perera

9. Outline of Presentation Background Introduction to the auction system Public auction process Charity auction process Data on auctions to date Issues/conclusions

10. Background New arrangements announced in 2003 budget Web-based allocation system Preferential access arrangements for charities Continuation of existing arrangements for non- specifically requested numbers (administrative allocation)

11. Introduction of the auction system Industry consultation Regulatory arrangements Reserve price setting Charities process commenced 21 July 2004 Public auctions commenced 6 September 2004

12. Web-based auction system IT build Register, apply, nominate, bid and pay online Industry Number Management System continues to manage number allocation

13. Public Auction Process Three steps to nominate, bid on and secure the rights of use to a smartnumber 30 day payment period Activate number within three years of purchase

14. Charity Auction Process Preferential treatment ‘Eligible’ charity – income tax exempt Demonstrate ‘strategic’ link to the number Requires competing interest for an auction Single sealed-bid auction process

15. Data – Public Auctions Over 4,000 registered users of smartnumbers® system ACMA have conducted 67 Auctions (to end of August 2006) Over 18,000 numbers have been sold Revenue generated over $23 million Approximately 10% of numbers have no competitive bids. Since the auctions started, the average number of numbers sold has trended down Average price per number for all auctions is $1297

17. Data - Charity auctions 204 numbers directly awarded to charities (no competing interest) for $100 each 14 numbers sold at auction – Average price $4,300 $80,500 revenue generated via charity auctions.

18. Issues raised by auctions Non-payment Debt recovery Investor activity

19. Conclusion Smartnumbers® system successfully implemented High degree of user satisfaction Businesses able to obtain number of choice through an open and transparent system Significant government revenue generated