Australian Communications Authority (Advice about Universal Service Subsidies) Direction (No. 1) 2002

Administered by Department of Communications and the Arts

Legislation au F2004B00461 Not in force Legislative Instrument

Legislation content

Commonwealth of Australia

 

Telecommunications (Consumer Protection and Service Standards) Act 1999

 

Australian Communications Authority (Advice about Universal Service Subsidies) Direction (No. 1) 2002

 

I, RICHARD KENNETH ROBERT ALSTON, Minister for Communications,  Information Technology and the Arts, make the following Direction under subsection 16A(1) of the Telecommunications (Consumer Protection and Service Standards) Act 1999.

Dated 13 May 2002.

RICHARD ALSTON

Minister for Communications, Information Technology and the Arts

_________________________________________________________________

1       Name of Direction

This Direction is the Australian Communications Authority (Advice about Universal Service Subsidies) Direction (No. 1) 2002.

2 Definitions

 In this Direction:

 ACA means the Australian Communications Authority.

Act means the Telecommunications (Consumer Protection and Service Standards) Act 1999.

 arrangements for the fulfilment of the universal service obligation means the arrangements set out in section 11 of the Act.

contestable universal service area means a universal service area in which the service obligation referred to in paragraph 9(1)(a) of the Act has been determined to be contestable under section 11C of the Act.

 Extended Zones universal service area means the universal service area notified as the universal service area of the Extended Zones in the Notice of the Primary Universal Service Provider for the Extended Zones of Australia published in the Commonwealth of Australia Gazette of 25 July 2001.

 Minister means the Minister for Communications, Information Technology and the Arts.

 relevant claim period means the 2004-2005 financial year.

 standard area means:

(a)              in relation to the service obligation referred to in paragraph 9(1)(a) of the Act, that part of Australia which is not part of:

(i)                the Extended Zones universal service area; or

(ii)             a universal service area under the Universal Service Areas Determination (No.1) 2001 (as varied by the Universal Service Areas Determination (No.1) 2001 (Amendment No.1 of 2001)); and

(b)              in relation to the service obligation referred to in paragraph 9(1)(b) of the Act, that part of Australia which is not part of the Extended Zones universal service area.

 universal service area has the same meaning as in section 9G of the Act.

 USO means the universal service obligation referred to in section 9 of the Act.             

 USO contestability pilot area means an area specified as a pilot area in the Pilot Areas Determination (No.1) 2001 made by the Minister on 11 April 2001 and published in the Commonwealth of Australia Gazette on 26 April 2001.

 USO subsidy means the universal service subsidy referred to in section 16 of the Act.

3 Direction

(1)             The ACA must provide advice on USO subsidies for the relevant claim period in respect of the service obligation referred to in paragraph 9(1)(a) of the Act for:

(a)     each of the two USO contestability pilot areas; and

(b)    the Extended Zones universal service area; and

(c)     the standard area; and

(d)    all universal service areas taken together.

(2)             The ACA’s advice under paragraph (1)(a) must include lump sum and per service subsidies for each contestable universal service area comprising each of the USO contestability pilots areas.

(3)             The ACA must provide advice on USO subsidies for the relevant claim period in respect of the service obligation referred to in paragraph 9(1)(b) of the Act for:

(a)     the Extended Zones universal service area; and

(b)    the standard area; and

(c)     all universal service areas taken together.

(4)             The ACA must use a process the ACA considers reasonable to work out the USO subsidies in its advice.

(5)             The ACA’s advice should be based on the assumption that the arrangements for the fulfilment of the universal service obligation as at the date of this Direction will apply in the relevant claim period.  This does, not, however, prevent the ACA from considering other possible arrangements if it considers it appropriate to do so.

(6)             Before providing advice under subclauses (1) and (3), the ACA must seek the views of all carriers, and such other persons as the ACA considers appropriate, to determine their views of, and support for, the USO subsidies in its advice.

(7)             In addition to USO subsidies, the ACA’s advice under subclauses (1) and (3) should provide details of:

(a)     the ACA’s process for working out the USO subsidies; and

(b)    the reasons why the ACA considers this process to be reasonable; and

(c)     what further work the ACA might need to do in relation to USO subsidies if the Commonwealth were to alter the USO contestability arrangements; and

(d)    its consultations under subclause (6); and

(e)     such other matters as the ACA considers appropriate.

(8)             The ACA’s advice under subclauses (1) and (3) is to be provided as soon as practicable but in any event no later than 30 June 2002.

 

 

Overview

The Telecommunications (Consumer Protection and Service Standards) Act 1999 was enacted to ensure that consumers have access to telecommunications services of an acceptable quality and to protect consumers from unreasonable discrimination in the provision of telecommunications services. The Act establishes a framework for service standards, consumer complaints handling, and the provision of universal service obligations (USO). The Australian Communications Authority (ACA) was established under this Act to oversee compliance with these standards and obligations. The Australian Communications Authority (Advice about Universal Service Subsidies) Direction (No. 1) 2002 was issued under the authority of the Minister for Communications, Information Technology and the Arts, aiming to address the need for clear and reasoned advice on USO subsidies. This Direction requires the ACA to provide detailed advice on USO subsidies for various areas within Australia, ensuring that the advice process is transparent, considers stakeholder input, and is based on reasonable assumptions about the arrangements for fulfilling the USO. The policy objective is to maintain and enhance the quality and accessibility of telecommunications services across different regions of Australia.

Scope and Application

The Telecommunications (Consumer Protection and Service Standards) Act 1999 applies to telecommunications service providers and consumers in Australia, with a focus on ensuring high standards of service and protection of consumer interests. The Act extends to the whole of Australia, covering all states, territories, and designated service areas within the nation. The Australian Communications Authority (ACA), now known as the Australian Communications and Media Authority (ACMA), is tasked with the implementation and enforcement of the Act, which includes the regulation of universal service obligations (USO) and the provision of consumer protection. Certain exclusions and exemptions may apply based on the specific provisions of the Act and any subordinate legislation or regulatory instruments. The ACA (ACMA) has the authority to issue directions, such as the Australian Communications Authority (Advice about Universal Service Subsidies) Direction (No. 1) 2002, which can extend or clarify the application of the Act, in this case, by specifying the process and content for providing advice on USO subsidies for different service areas within Australia.

Key Provisions

The Australian Communications Authority (ACA) is mandated under the Telecommunications (Consumer Protection and Service Standards) Act 1999 to provide advice on Universal Service Obligation (USO) subsidies for the 2004-2005 financial year. This advice must encompass different categories of universal service areas, including the USO contestability pilot areas, the Extended Zones universal service area, the standard area, and all universal service areas collectively (section 3(1)). Specifically, the ACA is required to provide detailed advice on lump sum and per service subsidies for each contestable universal service area within the USO contestability pilot areas (section 3(2)). Furthermore, the ACA must also offer advice on USO subsidies for the service obligation under section 9(1)(b) of the Act, covering the Extended Zones universal service area, the standard area, and all universal service areas collectively (section 3(3)). In discharging its advisory role, the ACA must adopt a process it deems reasonable to calculate the USO subsidies and base its advice on the assumption that the existing arrangements for fulfilling the USO will apply during the relevant claim period. However, the ACA is not precluded from considering alternative arrangements if it deems it appropriate (section 3(4) and (5)). To ensure a comprehensive and inclusive advisory process, the ACA is obligated to seek the views of all carriers and other relevant parties to understand their perspectives and support for the proposed USO subsidies before issuing its advice (section 3(6)). Additionally, the advice must detail the ACA's methodology for calculating USO subsidies, the rationale behind the chosen process, potential further work required if the USO contestability arrangements were to change, the consultations conducted under section 3(6), and any other matters the ACA deems relevant (section 3(7)). The ACA must deliver its advice by 30 June 2002, ensuring that the information is both timely and comprehensive (section 3(8)). Failure to comply with the provisions of this Direction could potentially lead to oversight and enforcement actions by the Minister or other relevant authorities, although specific penalties or consequences are not detailed within the text provided. The primary focus of the Direction is on ensuring that the ACA provides thorough and reasoned advice on USO subsidies, thereby supporting informed policy and regulatory decisions in the telecommunications sector.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.