Competition and Consumer (WLR Declaration) Extension 2018

Overview

The Competition and Consumer (WLR Declaration) Extension 2018 extends the expiry date for the Wholesale Line Rental (WLR) declaration under the Competition and Consumer Act 2010. Initially set to expire on 31 July 2019, the declaration is now extended to 30 June 2024. This extension was made by the Australian Competition and Consumer Commission, pursuant to section 152ALA(4) of the Act, in order to address the need for continued regulation of the WLR service to ensure fair competition and protect consumers. The WLR service, which allows end-users to connect to a carrier or carriage service provider’s public switched telephone network, is described in Annexure 1, detailing its functionalities and limitations, including the exclusion of services provided via Layer 2 bitstream services supplied by an NBN corporation. The purpose of this extension is to provide continued oversight and ensure the service remains accessible and compliant with consumer protection standards.

Scope and Application

The Competition and Consumer (WLR Declaration) Extension 2018 extends the expiry date for the Wholesale Line Rental (WLR) declaration, originally set to expire on 31 July 2019, to 30 June 2024 under section 152ALA(4) of the Competition and Consumer Act 2010. This legislative instrument applies to the Wholesale Line Rental service, which allows an end-user to connect to a carrier or carriage service provider’s public switched telephone network, enabling them to make and receive calls within specified bandwidth limits, and providing a telephone number. However, it explicitly excludes 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 extension applies nationally, covering all relevant persons and entities engaged in telecommunications within Australia, and any conduct or transactions involving the Wholesale Line Rental service. Subordinate instruments may further define or refine the application of this declaration.

Key Provisions

The Competition and Consumer (WLR Declaration) Extension 2018 extends the expiry date of the Wholesale Line Rental (WLR) declaration under the Competition and Consumer Act 2010 (section 152ALA(4)) to 30 June 2024, from its original expiry date of 31 July 2019. This extension pertains to the WLR service which allows end-users to connect to a carrier or carriage service provider's public switched telephone network. Specifically, the WLR service provides end-users with the ability to make and receive 3.1khz bandwidth calls, encompassing local, national, and international long-distance calls, along with a telephone number. However, this service does not include connectivity via a Layer 2 bitstream service supplied by an NBN corporation. The Act imposes certain obligations on parties involved with the WLR service. Firstly, providers of the WLR service must ensure that the service meets the specified description, which includes facilitating 3.1khz bandwidth calls and assigning a telephone number to the end-user. Additionally, the service must exclude any connectivity involving a Layer 2 bitstream service provided by an NBN corporation. The definition of terms such as "Layer 2 bitstream service" and "NBN corporation" is anchored in the Telecommunications Act 1997 and the National Broadband Network Companies Act 2011, respectively. In terms of consequences for non-compliance, the Competition and Consumer Act 2010 stipulates various civil and criminal penalties for breaches. For example, section 152ALD(2) specifies that any person who contravenes the declaration or fails to comply with its requirements may be subject to a civil penalty of up to $1.5 million for a corporation and up to $300,000 for an individual, depending on the nature and severity of the breach. Furthermore, under section 152ALD(4), a court may order the person to compensate any person who has suffered loss or damage due to the contravention. In more severe cases, criminal penalties may apply, including imprisonment for up to five years as outlined in section 152ALD(3). These provisions underscore the importance of compliance with the WLR declaration to avoid significant legal repercussions.