EXPLANATORY STATEMENT
Telecommunications (Consumer Protection and Service Standards) Act 1999
Contestable Service Obligation Determination (No. 1) 2001
Issued by the authority of the Minister for Communications, Information Technology and the Arts.
This Determination is one of a series of instruments that give effect to the Government’s decision to pilot multi-provider competition in the supply of the Universal Service Obligation (USO). The objective of this decision is to bring about greater competition in the supply of USO services and thus deliver greater service choice and better service standards for regional consumers.
The Contestable Service Obligation Determination (No. 1) 2001 activates competition in the supply of the standard telephone service under the USO in designated universal service areas.
Clause 1 – Name of Determination
Clause 1 provides for the citation of the Determination.
Clause 2 – Commencement
Clause 2 provides that the Determination commences on 1 July 2001.
Clause 3 – Definitions
Clause 3 defines ‘Act’ for the purposes of the Determination.
Clause 4 – Contestable Service Obligation
Section 11C of the Telecommunications (Consumer Protection and Service Standards) Act 1999 (the Act) enables the Minister to determine that a service obligation is a contestable service obligation for a universal service area. As a result of section 11F of the Act, the Minister can make determinations under section 11C initially only in relation to pilot areas. These pilot areas are identified in the Pilot Areas Determination (No.1) 2001. The Universal Service Areas Determination (No. 1) 2001 identifies universal service areas within the pilot areas in which the standard telephone obligation under the USO is being made contestable. It is envisaged that other universal service areas will be determined in the New South Wales and Queensland pilot area in which the standard telephone service obligation will be made contestable.
Clause 4 provides that for the purposes of section 11C of the Act, the obligation referred to in paragraph 9(1)(a) of the Act (dealing with the standard telephone service) is determined as a contestable service obligation for the universal service areas determined under the Universal Service Areas Determination (No. 1) 2001.
This means that the standard contestability arrangements contained in Division 6 of Part 2 of the Act apply to the universal service areas determined under the Universal Service Areas Determination (No. 1) 2001 for the service obligation dealing with the standard telephone service. Under these arrangements carriers and carriage service providers can seek approval from the Australian Communications Authority to compete with the primary universal service provider, Telstra, to provide standard telephone services or alternative telephone services in fulfilment of the standard telephone service obligation under the USO.