Competition and Consumer (LCS Declaration) Extension 2018

Overview

The Competition and Consumer (LCS Declaration) Extension 2018 extends the expiry date for the Local Carriage Service (LCS) declaration under the Competition and Consumer Act 2010, which was initially set to expire on 31 July 2019. This notifiable instrument, dated 23 November 2018, was introduced to address the need for an extended period for the implementation and oversight of the LCS declaration, which pertains to the carriage of telephone calls within the same standard zone, excluding services involving a Layer 2 bitstream service supplied by an NBN corporation. The Australian Competition and Consumer Commission is the enacting body, and the policy objective is to ensure that the LCS continues to operate within the regulatory framework, allowing sufficient time for stakeholders to adapt to the changes.

Scope and Application

The Competition and Consumer (LCS Declaration) Extension 2018 extends the expiry date of the Local Carriage Service (LCS) declaration under the Competition and Consumer Act 2010 from 31 July 2019 to 30 June 2024. This legislation pertains specifically to the LCS, which involves the carriage of telephone calls from customer equipment at an end-user's premises to another location within the same standard zone, excluding services provided by means of a Layer 2 bitstream service supplied by an NBN corporation. This extension applies nationally across Australia and is implemented through a notifiable instrument by the Australian Competition and Consumer Commission. The LCS is explicitly defined to exclude services where the connectivity between the end-user and the carrier's network is facilitated by Layer 2 bitstream services, as per the Telecommunications Act 1997. This legislative extension does not specify any exemptions or thresholds but operates under the definitions and provisions already established within the Competition and Consumer Act 2010 and other relevant acts.

Key Provisions

The primary sections of the Competition and Consumer (LCS Declaration) Extension 2018 (the Notifiable Instrument) extend the expiry date of the Local Carriage Service (LCS) declaration under the Competition and Consumer Act 2010 (the Act) to 30 June 2024. Section 1 of the instrument states that the Australian Competition and Consumer Commission (ACCC) is extending the expiry date for the LCS declaration from 31 July 2019 to 30 June 2024, as authorised by section 152ALA(4) of the Act. The LCS is defined in Annexure 1 to this instrument, which specifies that it is a service for the carriage of telephone calls from customer equipment at an end-user's premises to separately located customer equipment of an end-user within the same standard zone, excluding services where the connectivity is provided in whole or in part by means of a Layer 2 bitstream service supplied by an NBN corporation. The obligations and requirements imposed by this Act pertain to the LCS declaration itself, ensuring that it remains in effect until 30 June 2024. This extension allows for continued regulation and oversight of the LCS to maintain service standards and consumer protection within the telecommunications industry. The Act mandates that the LCS description and definitions provided in Annexure 1 apply, which include detailed explanations of terms such as 'Layer 2 bitstream service,' 'NBN corporation,' 'public switched telephone network,' and'standard zone.' These definitions ensure clarity and consistency in the application and understanding of the LCS. There are no explicit offences, penalties, or civil/criminal consequences outlined in the Notifiable Instrument itself. However, breaches of the obligations and requirements under the Competition and Consumer Act 2010, of which this instrument is a part, can lead to significant penalties. Under the Act, entities found to be in breach of certain provisions may be subject to substantial fines, with penalties for corporations potentially reaching up to $10 million and for individuals up to $2 million, depending on the nature and severity of the breach. Additionally, court orders for injunctions or corrective advertising may be issued to remedy non-compliance. These potential consequences underscore the importance of adhering to the Act’s requirements and maintaining the integrity of the LCS declaration.