The Mobile Black Spot Program is an ongoing Australian federal government funding program aimed at adding mobile phone reception to areas which do not have it, such as communities, transport routes and tourist destinations. As of October 2022, over 1,200 mobile base stations have been funded and a total of 1,047 constructed by Telstra, Optus, TPG Telecom (formerly Vodafone), and Field Solutions Group (FSG). The need for a mobile black spot funding program was first identified in the government's 2011-12 Regional Telecommunications Review, with the first of the towers built under the program being switched on in December 2015. Mobile base stations built under the program are funded with contributions from the Commonwealth, the network operators themselves, and in some cases, state and local governments.

History

The program was established when the 2011-12 Regional Telecommunications Review found that the mobile coverage footprint in Australia was approaching the limit of commercial viability and financial incentive for network operators to continue expansion, which would leave many areas to continue to lack phone reception as there would not be an incentive for mobile carriers to continue expanding themselves.[1] Prior to the establishment of the program, the government took submissions from the public for black spots to be addressed, with over 6,000 black spots throughout the country being submitted by the public.[2]

The Mobile Black Spot Program was an election promise of Tony Abbott's election campaign in 2013, when he pledged $20 million of government funding specifically to the program, $80 million to improving coverage in areas such as major transport routes and stated intention to collaborate with NBN Co to co-locate black spot funded towers on existing NBN fixed wireless towers.[3]

Round 1

499 base stations were funded under the first round of the program, with $100 million of government money.[4] Telstra received funding to build 429 base stations, and Vodafone got 70. Optus was absent from this first round.[5] The first tower out of this round to be commissioned was a Vodafone tower, at the White Rock Wind Farm near Glen Innes, New South Wales.[6]

Round 2

266 base stations were funded under round 2 of the program, with $57.5 million of federal government money, and $54 million contributed from state and local governments. 146 sites were built by Telstra, 113 were built by Optus,[7] and Vodafone got funding for just 4, which they expressed disappointment about.[8]

Round 3 (Priority Locations)

Round 3 of the program was focused on locations perceived to be of a high priority by the government. $60 million was allocated to 89 locations. Optus was allocated 12 sites, Vodafone got one, the remainder of the funding going to Telstra.[9][10] The first tower under this round was switched on in June 2018, at East Lynne, New South Wales.[11]

Round 4

180 base stations were built from the $25 million allocated to this round of the program. Telstra built 131 towers, and Optus 49, with Vodafone absent from funding in this round.[12]

Round 5

182 new base stations were funded under this round, funding for which Telstra got 97 mobile sites, Optus 83, and Field Solutions Group got 2, who also made their debut in the program in this round.[13] $36.8 million of Commonwealth government money was used in this round.

Round 5A

Round 5A was established as a supplementary round to Round 5, as out of the $80 million allocated to the round initially, only $36.8 million was used. Under this round, there was a specific focus on major transport routes and disaster prone areas.[13] Field Solutions Group received funding to trial their neutral host model, which would have the possibility of providing reception to customers of any mobile carrier. FSG built these towers along the Adventure Way in Queensland, in conjunction with Optus.[14] 67 new base stations were funded under this round, with Telstra getting funding for 48, Optus for 4, and the remainder going to FSG.[15]

Round 6 (Improving Mobile Coverage)

Round 6 has been dubbed the "improving mobile coverage" round, set to target 54 locations,[16] for which $80 million of funding has been committed.[17]

Criticism

From the telcos

Vodafone, after receiving funding to build just 4 base stations in round 2 of the program, criticised Telstra's dominant share in the program. After this, they attempted to convince the ACCC to declare domestic mobile roaming, a policy which would allow all mobile network providers to roam on the infrastructure of any other provider, and thereby greatly increase the regional network footprint of Vodafone in particular.[18] The ACCC launched an inquiry into domestic roaming but decided against it, declaring it would "harm the interests of consumers by undermining the incentives of mobile operators to make investments to compete with each other in regional areas".[19] Vodafone later attempted to dispute the decision in the Federal Court of Australia, but ultimately lost the case.[20]

From the public

In multiple instances, the telecommunications company chosen to construct a phone tower has caused some controversy in the communities served, usually in cases where Optus was selected to build a phone tower in an area already dominated by Telstra. Complaints were made that in order to make use of this tower, phone users would have to subscribe to the Optus network, which would only be usable in that given area, and not the other surrounding areas served exclusively by Telstra. The Tjukayirla Roadhouse is an example of this situation, where Optus received funding as they were the only telco to apply for a tender at this location.[21] In another instance, the owner of the Archer River Roadhouse in far north Queensland described the decision to build an Optus site instead of Telstra at that location as "ludicrous", as residents of the nearby area used exclusively Telstra services.[22] Telstra went on and built a base station at Archer River Roadhouse. Somewhat proving how the program stimulates competition between the carriers.

Audit of Round 1

The Australian National Audit Office criticised round 1 of the program, believing it provided taxpayers "poor value for money".[23] A report from the auditor found that out of the 499 base stations built under round 1, 39 would have been built anyway by the network operators without needing public funding, and another 89 only provided minimal benefit to residents lacking coverage.[4]

References

  1. ↑ "2011–12 Regional Telecommunications Review" (PDF). infrastructure.gov.au. Australian Government. Retrieved 30 October 2022.
  2. ↑ Killoran, Matthew (14 November 2014). "Queensland riddled with 900 mobile phone black spots". The Courier Mail. Retrieved 30 October 2022.
  3. ↑ "Up to 250 new mobile towers under Abbott". SBS. AAP. 13 August 2013. Retrieved 29 October 2022.
  4. 1 2 Knott, Matthew (2 September 2016). "'Poor value for money': auditor blasts Turnbull government's mobile black spot program". Sydney Morning Herald. Retrieved 30 October 2022.
  5. ↑ Sadauskas, Andres (24 May 2016). "Turnbull commits extra $60m to fix mobile blackspots". IT News. Retrieved 30 October 2022.
  6. ↑ Reichert, Corinne (20 December 2015). "Vodafone activates first mobile blackspot cell tower". ZDNet. Retrieved 29 October 2022.
  7. ↑ "Mobile Black Spot Program - Round 2 Funded Base Stations". data.gov.au. Australian Government. Retrieved 30 October 2022.
  8. ↑ Battersby, Lucy (1 December 2016). "Telstra and Optus win millions in mobile blackspots second round". Sydney Morning Herald. Retrieved 30 October 2022.
  9. ↑ Reichert, Corinne (4 April 2018). "Telstra wins big on mobile blackspots round three". ZDNet. Retrieved 29 October 2022.
  10. ↑ "Mobile Black Spot Program - PL Round Funded Base Stations". 2019-04-04.
  11. ↑ Reichert, Corinne (28 June 2018). "First mobile blackspot round 3 site goes live". ZDNet. Retrieved 29 October 2022.
  12. ↑ Reichert, Corinne (17 March 2019). "Telstra and Optus to deliver 180 more base stations for mobile blackspot program". ZDNet. Retrieved 29 October 2022.
  13. 1 2 Duckett, Chris (20 April 2020). "Australia gets round 5A of mobile blackspot program after round 5 undersubscribed". ZDNet. Retrieved 30 October 2022.
  14. ↑ Chirgwin, Richard (22 February 2022). "FSG chooses Nokia, Mavenir for regional network build". IT News. Retrieved 30 October 2022.
  15. ↑ Duckett, Chris (22 July 2021). "Telstra sweeps sites funded under Round 5A of mobile blackspot program". ZDNet. Retrieved 30 October 2022.
  16. ↑ "Mobile Black Spot Program improving mobile coverage round – Target Locations" (PDF). infrastructure.gov.au. Australian Government. Retrieved 30 October 2022.
  17. ↑ "Much-anticipated Yellow Rock mobile tower is finally switched on". Blue Mountains Gazette. 3 November 2021. Retrieved 30 October 2022.
  18. ↑ Mason, Max (15 December 2016). "Telstra, Optus, Vodafone, TPG argue over domestic mobile roaming". Australian Financial Review. Retrieved 29 October 2022.
  19. ↑ Coyne, Allie (23 October 2017). "ACCC decides not to regulate regional mobile roaming". IT News. Retrieved 29 October 2022.
  20. ↑ "Vodafone loses ACCC domestic roaming case". SBS. AAP. 21 December 2017. Retrieved 29 October 2022.
  21. ↑ Moussalli, Isabel (11 February 2021). "Mobile phone black spot gets Optus base station in middle of Telstra country". ABC. Retrieved 29 October 2022.
  22. ↑ Sexton-McGrath, Kristy (16 September 2019). "Optus chosen to cover mobile black spots in remote Australia, sparking anger". ABC. Retrieved 29 October 2022.
  23. ↑ "Award of Funding under the Mobile Black Spot Programme". ANAO. Australian National Audit Office. Retrieved 30 October 2022.
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