Explanatory Statement
Issued by the authority of the Australian Communications and Media Authority
RADIOCOMMUNICATIONS (CHARGES) AMENDMENT DETERMINATION 2007
(NO. 3)
Australian Communications and Media Authority Act 2005
Background, purpose and legislative basis
This document provides an explanation of the Radiocommunications (Charges) Amendment Determination 2007 (No. 3), (the Amendment Determination) made under subsection 60 (1) of the Australian Communications and Media Authority Act 2005 (the Act).
Subsection 60 (1) of the Act provides that the Australian Communications and Media Authority (ACMA) may make a written determination fixing charges for services provided by ACMA and expenses it incurs under the Radiocommunications Act 1992 (the Radiocommunications Act). The written determination is the Radiocommunications (Charges) Determination 2007 (the Principal Determination). The Amendment Determination seeks to amend the Principal Determination by substituting the references to ‘point to point (58 GHz band) station’ for references to the new ‘point to point (self-coordinated) station’ category of fixed licence option.
Section 46 of the Radiocommunications Act 1992 (the Radiocommunications Act) states that, otherwise than in an ‘emergency’ (section 49, Radiocommunications Act), a radiocommunications device may only be used in Australia when it is authorised by a class, apparatus or spectrum licence. A new licence option is required in order to enable deployment of a new high-capacity broadband wireless technology known as millimetre wave. This technology operates in the 71-76 GHz and 81-86 GHz frequency ranges.
The licensing regime required to support stations operating in the 71-76 and 81-86 GHz frequency ranges is identical to that currently in place for point to point (58 GHz band) stations. The Radiocommunications (Interpretation) Amendment Determination 2007 (No. x) therefore seeks to remove the (narrow) definition of ‘point to point (58 GHz band) station’ and create a single new licence option that efficiently absorbs both the 58 GHz and the 71-76 and 81-86 GHz frequency ranges. The definitional name for this licence option is ‘point to point (self coordinated) station.’
To facilitate the regulatory arrangements for the new licence option, amendments are required to the Radiocommunications (Charges) Determination in order to set the charges for issuing and re-issuing of the licenses under this option. This is provided for in the Radiocommunications (Charges) Amendment Determination 2007 (No. 3).
Millimetre wave technology employs antennas that produce very narrow beamwidth (or ‘pencil beam’) emissions. This means that stations operating in the 71 to 76 and 81 to 86 GHz frequency ranges interfere with other stations only where the antennas of the two stations are pointing towards one another and/or are in very close proximity. The need for conventional coordination is therefore significantly reduced.
To provide maximum benefit to industry and to minimise costs to government, a self coordination approach based on the apparatus licence register was proposed by ACMA. Full details can be found in the discussion paper Planning of the 71-76 and 81-86 GHz bands for millimeter wave high capacity link technology (SPP 2006-11) released by ACMA on 11 December 2006. This paper proposed the introduction of a licensing regime and fee structure for millimetre wave services similar to that already in place for fixed point to point (58 GHz band) services.
Consultation
In accordance with section 17 of the Legislative Instruments Act 2003, ACMA conducted targeted consultation with industry in regard to the changes. The discussion paper Planning of the 71-76 and 81-86 GHz bands for millimetre wave high capacity link technology was released by ACMA on 11 December 2006. The comment period closed on 28 February 2007. Five submissions were received from industry and all were in agreement with the proposals outlined in the paper.
To provide maximum benefit to industry and to minimise costs to government, a self coordinated approach based on the apparatus licence register was proposed by ACMA. Full details can be found in the discussion paper Planning of the 71-76 and 81-86 GHz bands for millimeter wave high capacity link technology (SPP 2006-11) released by ACMA on 11 December 2006. This paper proposed the introduction of a licensing regime and fee structure for millimetre wave services similar to that already in place for fixed point to point (58 GHz band) services.
The Radiocommunications (Charges) Amendment Determination 2007 (No. 3) has no effect on competition. Rather, the changes open up new spectrum for use by industry under a fixed and inexpensive tax regime.
Due to the facilitative rather than prohibitive nature of the amendments, there is no compliance cost to industry. For this reason ACMA’s Best Practice Regulation Coordinator decided that the determination was minor and machinery in nature and a Regulation Impact Statement (RIS) and Business Cost Calculator (BCC) Report were not required. The Office of Best Practice Regulation (OBPR) was consulted as a part of this process (ACMA Reference: 024).
The proposed changes do not substantially affect existing 58 GHz licences. However, there are 13 existing licences in the 58 GHz band.
Notes on the Instrument
Section 1 – Name of Determination
Section 1 provides that the Amendment Determination is the Radiocommunications (Charges) Amendment Determination 2007 (No. 3).
Section 2 - Commencement
Section 2 provides that the Amendment Determination commences on the day after it is registered on the Federal Register of Legislative Instruments.
Section 3 – Amendment of Radiocommunications(Charges) Determination 2007
Section 3 provides that Schedule 1 amends the Principal Determination.
Schedule 1 - Amendments
[1] Section 17
Item 1 amends section 17 of the Principal Determination by removing the reference to ‘point to point stations within the frequency range greater than 57.2 GHz and less than or equal to 58.2 GHz’ and replacing it with a reference to the new category of fixed licence: ‘point to point (self-coordinated) stations’.
Item 1 amends paragraph 17(2)(a) of the Principal Determination, which provided for administrative charges for instalment payments. It provided that a charge for processing the payment of an instalment of tax in accordance with the election is ‘for a fixed licence for the operation of a pair of point to point stations within the frequency range greater than 57.2 GHz and less than or equal to 58.2 GHz - $3.00’.
Item 1 provides for an administrative charge for instalment payments and provides that a charge for processing the payment of an instalment of tax in accordance with the election is ‘for a fixed licence for the operation of a pair of point to point (self-coordinated) stations - $3.00’.
The amendment changes the description of the category of licence to which the provision applies, in order to reflect the new fixed licence category. The category ‘point to point stations within the frequency range greater than 57.2 GHz and less than or equal to 58.2 GHz’ was previously defined as a ‘point to point (58 GHz band) station’ in the Radiocommunications (Interpretation) Determination 2000).
Note that under the Radiocommunications (Transmitter Licence Tax) Act 1983, licencees who apply for a transmitter licence for a period of more than twelve months may elect to have tax imposed in one of the following two ways:
1 in accordance with subsection 6 (2). Tax is imposed on the issue of the licence for the period the licence is in force; or
2 in accordance with subsection 6 (3). Tax is imposed on the on the issue of the licence and each anniversary of the day the licence came into force occurring during the period the licence is in force.
Item 1 replaces the previous wording and Item 2 enables licencees who elect for option 1 to pay a $3.00 administrative charge for processing the payment of an instalment of tax for point to point (self-coordinated) station licences.
[2] Schedule 2, Part 6, item 6.11
Item 2 amends Schedule 2, Part 6, item 6.11 of the Principal Determination. Item 3 amends the Principal Determination by substituting the existing reference to ‘point to point (58 GHz band) station’ with a reference to ‘point to point (self-coordinated) station’. This removes the redundant reference to 58 GHz stations and enables ‘point to point (self-coordinated) station’ licences to be issued for the same charge as was in place for 58 GHz licences in the Principal Determination ($123.00).
[3] Schedule 2, Part 8, item 8.1, paragraph (f)
Item 3 substitutes the existing reference to ‘a pair of point to point stations within the frequency range greater than 57.2 GHz and less than or equal to 58.2 GHz’ with a reference to ‘a pair of point to point (self-coordinated) stations’. This removes the redundant reference to ‘point to point (58 GHz band) stations’ and enables point to point (self coordinated) station licences to be renewed for the same charge as was in place for ‘point to point (58 GHz band) stations ($3.00).