Explanatory Statement
Issued by the authority of the Australian Communications and Media Authority
RADIOCOMMUNICATIONS (TRANSMITTER LICENCE TAX) AMENDMENT DETERMINATION 2007 (NO. 3)
Radiocommunications (Transmitter Licence Tax) Act 1983
Background, purpose and legislative basis
This document provides an explanation of the Radiocommunications (Transmitter Licence Tax) Amendment Determination 2007 (No. 3), (the Amendment Determination) made under subsection 7 (1) of the Radiocommunications (Transmitter Licence Tax) Act 1983 (the Transmitter Licence Tax Act).
Subsection 7(1) of the Transmitter Licence Tax Act provides that the amount of tax in respect of the issue of a transmitter licence, the anniversary of a transmitter licence coming into force or the holding of a transmitter licence is the amount determined by ACMA. The Principal Determination in relation to these matters is the Radiocommunications (Transmitter Licence Tax) Determination 2003 (No. 2).
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, an amendment is required to the Radiocommunications (Transmitter Licence Tax) Determination 2003 (No. 2) in order to apply the annual tax for stations operating in the applicable bands. This is provided for in the Radiocommunications (Transmitter Licence Tax) 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 (Transmitter Licence Tax) 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 the Determination
Section 1 provides that the Amendment Determination is the Radiocommunications (Transmitter Licence Tax) 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 the Radiocommunications (Transmitter Licence Tax) Determination 2003 (No. 2)
Section 3 provides that Schedule 1 amends the Principal Determination.
Schedule 1- Amendments
[1] Schedule 2, table 702, item 4
Item 1 of the Amendment Determination amends Schedule 2, table 702, item 4 of the Principal Determination. Table 702 sets out the amount of tax in respect of the licences. Item 1 of the Amendment Determination substitutes the existing reference to ‘point to point (58 GHz band) stations’ with a reference to ‘point to point (self-coordinated) stations’. This removes the redundant reference to 58 GHz band stations and sets the same annual tax amount for point to point (self coordinated) station licences as was in place for 58 GHz licences ($180.00 per pair of spectrum accesses).
[2] Dictionary, definition of point to point (58GHz band) station
Item 2 of the Amendment Determination amends the Dictionary to the Principal Determination. Item 2 of the Amendment Determination omits the dictionary definition of ‘point to point (58 GHz band) station’.
[3] Dictionary, before definition of point to point station
Item 3 of the Amendment Determination amends the Dictionary to the Principal Determination. Item 3 of the Amendment Determination inserts a definition of ‘point to point (self-coordinated) station’. Item 3 of the Amendment Determination states: ‘point to point (self-coordinated) station’ has the meaning given by the Radiocommunications (Interpretation) Determination 2000.