Raffaele, Gary --- "Stealing telecommunications services" [1996] ALRCRefJl 4; (1996) 69 Australian Law Reform Commission Reform Journal 18

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ALRC Reform 69

STEALING TELECOMMUNICATIONS SERVICES

Since the first system for communication by means of electromagnetic impulses carried over wires was patented in 1837, crimes involving telecommunications equipment have been committed. As we move into the twenty first century where broadband telecommunications such as interactive video telephony will become widely available, the opportunities for criminality will increase. The Australian Institute of Criminology is currently involved in a broad investigation of telecommunications crime. A trends and issues paper was released in April 1996 and a full report on this research is expected in late 1997.

Such a review is timely, given the rapid development of the telecommunications industry in recent years. At present, Telstra alone has some 8.6million customers who make around 25 million calls a day. By far the most important development has been the growth of mobile telephone services, introduced in Sydney and Melbourne around 1987. There are now approximately 3 million mobile telephone subscribers in Australia who spend between $10 and $500 a month on their calls, thus creating a market estimated to be worth approximately $3.5 billion a year.

Information on the size of the problem of theft of telecommunications industry is scant, particularly in Australia. In the US it is estimated that mobile telephone fraud costs the industry over a million dollars a day. In the U.K it has been estimated at $144 million per year or 1% of network turnover. In Australia, one international telephone fraud operation cost the Commonwealth $400 000, while another resulted in a company losing $50 000 in unauthorised ISD call charges. Types of crimes range from theft of mobile phones and false subscriptions to complicated computer fraud.

Policy makers face a number of choices in deciding how best to approach the problem. One is to take legislative and administrative action. This may however result in the over-codifying of behaviour, enacting new laws every time a new type of criminal behaviour arises. There is already a wide array of State and Commonwealth offences which govern the use of telecommunications systems. If they are rigorously interpreted they will encompass most situations in which services are stolen. Where omissions exist, specific laws with limited effect could be enacted.

Alternatively a more cautious approach based on industry self-regulation may be preferable. Both providers and users of services have a role to play in protecting their own interests and in preventing illegality for the benefit of all concerned.

For more information contact Gary Raffaele at the Australian Institute of Criminology [phone].

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