Telstra super-sized advertising structures raise concerns

​City of Melbourne Planning portfolio Chair Councillor Nicholas Reece said: "These structures are advertising billboards masquerading as payphones. Complaints from the community tell us that they are impeding pedestrians, disrupting footpath traffic flow and negatively impacting a number of local retailers and businesses.

"Walking trips within the City of Melbourne increased 14 per cent (by 38,000 trips) during a recent four year period. Travelling by foot is the most utilised mode of transport in the Hoddle Grid and as custodians of the city we have a responsibility to maintain space for people. We are not going to sit idly by and allow the plundering of the public realm for private profit."

The Cities of Port Phillip, Maribyrnong, Stonnington and Yarra have advised they are equally concerned that the new Telstra structures are significantly disrupting footpath traffic and negatively impacting the public realm. At 2645mm high and 1090mm wide, the new structures are nearly 50 per cent larger than the previous installations.

Councillor Reece said: "Advertising industry sources estimate that each Telstra super-sized electronic billboard earns about $8,000 in revenue per week! For 120 in prime locations throughout the city centre, that's millions of dollars per year going to Telstra with no rental costs or compensation for the imposition on our public spaces.

"Adding to this, analysis of the pedestrian network has found that if the walking connectivity within the Hoddle Grid is reduced by 10 per cent, the value of the economy of the Hoddle Grid will be reduced by up to $2.1 billion per annum[1]. Pedestrian flow is vital to our city economy and, of course, retailers and other businesses."

Under the Federal Telecommunications Act 1997, planning approval is not required for the installation of telecommunications infrastructure provided it meets the criteria for 'low-impact facility'.

A planning permit is required for the display of third party commercial advertising. In late 2016, City of Melbourne planners approved permit applications to display electronic commercial advertising on 39 new-design Telstra structures. The signage permits were considered in accordance with the Melbourne Planning Scheme currently in force.

At the time, legal submissions by the applicant stated that that the new larger advertising structures met the test for a 'low impact facility'.  With Telstra now indicating it is planning to triple the number of installations - from 40 to 120 - fitted with electronic billboards throughout the Hoddle Grid, City of Melbourne is now considering this matter further.

Councillor Reece said: "Twelve of these new super-sized advertising structures are being installed in Bourke Street - two of which are less than five metres apart! With nearly 90 per cent of Australians owning a mobile 'phone, it is impossible to comprehend that there is a need for this number of Telstra installations in the central city. "

Many of the installations being upgraded by Telstra with the larger new-design structures already carried static advertising. However the new installations are fitted with 75" LCD screens - which are 60 per cent larger than the previous signage displays - and which are programmed to show up to four advertisements every minute.

Councillor Reece said: "These high-resolution digital billboards impose rotating 15 and 30 second commercial advertisements into the public realm. This is visual clutter and detracts from the streetscape. We need to urgently review the current Advertising Signs policy in the Melbourne Planning Scheme which has not kept pace with the proliferation of electronic signage.

"Our officers have held high-level discussions with Telstra executives and we have also conveyed City of Melbourne's concerns regarding the imposition of these new advertising structures to the Federal Government. We would prefer to resolve these issues through discussion," Councillor Reece said.

"Legal action is a last resort but we must protect our valuable and scarce public space from being co-opted for profit without proper consideration of the community impact. Currently, it appears as though Telstra is utilising federal legislation to effectively side-step any genuine consultation process."

Prior to approving the commercial advertising permit applications two years ago, City of Melbourne officers successfully sought to modify some minor aspects of the proposed advertising structure design in a bid to mitigate the expected impact on pedestrian navigation and the public realm.

"The concerns and complaints expressed by pedestrians and businesses indicate we need to push this further with Telstra and the Federal Government," said Councillor Reece.

"During public consultation in 2018 for our Transport Strategy Refresh, the City of Melbourne received strong support for the reduction of clutter on footpaths. We are now seeking community feedback on the Telstra advertising structures to better understand their impact."

To have your say and leave feedback, visit our Participate website at https://participate.melbourne.vic.gov.au/advertising-payphones

[1] SGS Economics and Planning, 2014, Pedestrian Analysis Technical Report