Special Digital Data Service Provider Determination Revocation 2006 (No. 1)

Administered by Department of Communications and the Arts

Legislation au F2006L01558 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

Telecommunications (Consumer Protection and Service Standards) Act 1999

 

Special Digital Data Service Provider Determination Revocation 2006 (No. 1)

 

Issued by the authority of the Minister for Communications, Information Technology

and the Arts

 

The special digital data service obligation, set out in section 10B of the Telecommunications (Consumer Protection and Service Standards) Act 1999 (the Act), in conjunction with subsection 15A(5) of the Act, requires special digital data service providers to take all reasonable steps to supply a service that broadly compares to a basic rate 64 kilobits per second Integrated Services Digital Network (ISDN) service to the 4 per cent of the population in special digital data service areas that, for technical reasons, is unable to access ISDN.  Under the Telecommunications (Consumer Protection and Service Standards) (Special Digital Data Service) Regulations 1999, as affected by item 3 of Schedule 2 to the Telecommunications (Consumer Protection and Service Standards) Amendment Act (No. 2) 2000, a customer of a special digital data service provider is entitled to a rebate of the lesser of 50 per cent of the cost of purchase and installation of the equipment necessary to provide a special digital data service and $765.

 

The Special Digital Data Service Provider Determination Revocation 2006 (No. 1) revokes the Special Digital Data Service Provider Determination 2002 (No. 1), which determined Hotkey Internet Services Pty Ltd (ABN 66 075 759 821) (Hotkey) to be a special digital data service provider for special digital data service areas within Australia.  Hotkey sought revocation from the Minister for Communications, Information Technology and the Arts.

 

Subsection 15(2) of the Act provides for the Minister for Communications, Information Technology and the Arts to make a written determination stating that a specified carrier or carriage service provider is a special digital data service provider for a specified special digital data service area.  Subsection 33(3) of the Acts Interpretation Act 1901 provides that where an Act confers a power to make an instrument, the power shall, unless the contrary intention appears, be construed as including a power exercisable in the like manner and subject to the like conditions to revoke any such instrument.  In the absence of a contrary intention in the Act, subsection 33(3) of the Acts Interpretation Act allows the Minister to revoke Hotkey’s determination as a special digital data service provider.

 

Subsection 15(3) of the Act provides that in deciding whether to make a determination under section 15, the Minister is limited to considering factors that are relevant to achieving the objects of the Act.  As a result of subsection 33(3) of the Acts Interpretation Act, this requirement applies to the Minister’s instrument of revocation of Hotkey’s determination as a special digital data service provider.

 

The relevant objects are those set out in sections 3 and 8A of the Act.  Section 3 of the Act provides that the objects of the Telecommunications Act 1997 apply to the Act in a corresponding way to the way in which they apply to the Telecommunications Act 1997.  The most relevant sets of these objects to revocation of Hotkey’s special digital data service obligation (SDDSO) are those relating to:

 

(a) the efficient, economical, and competitive supply of services in accordance with subsection 3(1) and paragraphs 3(2)(a) and (d) of the Telecommunications Act 1997;
 

(b) providing consumers with appropriate access to services and appropriate protection in accordance with paragraphs 3(2)(a), (b) and (c) of the Telecommunications Act 1997; and

 

(c) the flexibility of the Universal Service Regime to respond to rapid changes in the telecommunications industry in accordance with paragraph 8A(g) of the Act.

 

The Minister for Communications, Information Technology and the Arts has considered the revocation of Hotkey’s SDDSO status against these objects.  The Minister has concluded that requiring Hotkey to continue to provide services when it is commercially unable to do so is not consistent with the efficient, economical and competitive supply of services.  In these circumstances, it would not serve the interests of consumers to try to continue to require Hotkey to provide SDDSO services.  Hotkey has indicated it has put in place arrangements to provide continuity of service for its small number of SDDSO customers.  SDDSO services will continue to be available from Telstra, which has been an SDDSO provider since 1999 and has supplied most SDDSO services.  Revocation of Hotkey’s SDDSO status exemplifies the ability of the universal service regime to respond to rapid changes in the telecommunications industry, in this case, the operational circumstances of Hotkey.

 

Subsection 15(5) of the Act provides that a determination made under section 15 takes effect on the day specified in the determination and that that day must not be before the day on which the instrument is published in the Commonwealth of Australia Gazette.  Subsection 15(9) of the Act provides that a determination under section 15 of the Act is a disallowable instrument for the purposes of the Acts Interpretation Act 1901.

 

As a consequence of the commencement of the Legislative Instruments Act 2003 (LIA) and the repeal of section 46A of the Acts Interpretation Act 1901 on 1 January 2005, the accompanying instrument is a legislative instrument for the purposes of the LIA (see paragraph 6(1)(d) of the LIA).  The accompanying instrument must therefore be tabled in Parliament and is subject to Parliamentary disallowance.  The requirement for gazettal under section 15 of the Act has been satisfied by the registration of the accompanying determination and this explanatory statement on the Federal Register of Legislative Instruments (see subsection 56(1) of the LIA).

 

Consultation

 

Hotkey requested that its status as a SDDSO provider be revoked and the Department of Communications, Information Technology and the Arts (the Department) consulted with it accordingly.  The Department also sought input from the Australian Communications and Media Authority (ACMA) and the Telecommunications Industry Ombudsman (TIO). Neither the Department, ACMA nor the TIO is aware of any complaints about Hotkey’s conduct or its request for revocation of its status.  Hotkey has only attracted a small number of SDDSO customers as a SDDSO provider.

 

The Office of Regulation Review (ORR) advised the Department that a regulation impact statement was not required to be prepared in relation to the revocation of Hotkey’s determination as a special digital data service provider as the revocation would have only a minor impact on one business (Hotkey) and was machinery of government in nature.

 

Details of accompanying determination

 

Details of the accompanying determination are as follows:

 

Clause 1 Name of Determination

 

Clause 1 of the accompanying determination provides that the name of the accompanying determination is the Special Digital Data Service Provider Determination Revocation 2006 (No. 1).

 

Clause 2 Commencement

 

Clause 2 of the accompanying determination provides that the accompanying determination commences on the day after it is registered on the Federal Register of Legislative Instruments.

 

Clause 3 Revocation

 

Clause 3 of the accompanying determination provides for the revocation of the determination of Hotkey as special digital data service provider for special digital data service areas within Australia.

Overview

The Special Digital Data Service Provider Determination Revocation 2006 (No. 1) was issued under the authority of the Minister for Communications, Information Technology and the Arts, and it revokes the Special Digital Data Service Provider Determination 2002 (No. 1), which had previously designated Hotkey Internet Services Pty Ltd as a special digital data service provider for special digital data service areas within Australia. Enacted by the Parliament of Australia, the Telecommunications (Consumer Protection and Service Standards) Act 1999 aims to ensure appropriate access to telecommunications services and consumer protection. The policy objective behind revoking Hotkey's special digital data service provider status is to align with the efficient, economical, and competitive supply of services, as well as to adapt the universal service regime to changes in the telecommunications industry. The decision to revoke Hotkey’s status was based on the company's commercial inability to continue providing services, which would not serve the interests of consumers, while ensuring that alternative service providers, such as Telstra, remain available to meet the needs of the affected population.

Scope and Application

The Special Digital Data Service Provider Determination Revocation 2006 (No. 1) pertains to the revocation of a determination made under the Telecommunications (Consumer Protection and Service Standards) Act 1999, specifically revoking the Special Digital Data Service Provider Determination 2002 (No. 1) concerning Hotkey Internet Services Pty Ltd as a special digital data service provider for special digital data service areas within Australia. The revocation was sought by Hotkey and approved by the Minister for Communications, Information Technology and the Arts, in accordance with the provisions of the Act which allow for the revocation of such determinations. The Act applies to special digital data service providers, such as Hotkey, that were previously obligated to provide services to a specified demographic unable to access ISDN due to technical reasons. The revocation is based on considerations of efficient, economical, and competitive supply of services, consumer access and protection, and the flexibility of the universal service regime to adapt to industry changes. This revocation affects only Hotkey, with other providers like Telstra continuing to offer special digital data service obligations (SDDSO). The Act extends its reach across Australia, applying to all telecommunications providers within the jurisdiction. The revocation is a legislative instrument under the Legislative Instruments Act 2003 and is subject to parliamentary disallowance and registration on the Federal Register of Legislative Instruments.

Key Provisions

The Special Digital Data Service Provider Determination Revocation 2006 (No. 1) primarily focuses on revoking the Special Digital Data Service Provider Determination 2002 (No. 1) which designated Hotkey Internet Services Pty Ltd as a special digital data service provider (section 3). This revocation aligns with the legislative intent to ensure that the telecommunications industry remains efficient, economical, and competitive, while also safeguarding consumer interests. This determination is critical as it impacts the provision of services to those in special digital data service areas who cannot access ISDN services (section 10B). The Act mandates that special digital data service providers must take reasonable steps to provide services comparable to a basic rate 64 kilobits per second Integrated Services Digital Network (ISDN) service (section 10B). Additionally, under the regulations, customers of these providers are entitled to a rebate of up to 50% of the cost of necessary equipment or $765, whichever is lesser (section 15A(5) and regulation 3). The Act imposes several obligations on special digital data service providers, ensuring they meet specific service standards and consumer protections. For instance, providers must ensure that the services provided are comparable to a basic rate ISDN service (section 10B). Furthermore, these providers are required to offer rebates to their customers, as stipulated in the regulations (regulation 3). These obligations are essential to maintain the integrity of the service provision framework and to protect consumer rights within the telecommunications sector. Breach of the obligations outlined in the Act may result in various consequences. While the explanatory statement does not specify detailed penalties, it is understood that non-compliance with the Act can lead to enforcement actions by regulatory bodies such as the Australian Communications and Media Authority (ACMA). Such breaches may attract penalties under the broader framework of the Telecommunications Act 1997, which can include fines and other corrective measures. The revocation of a provider’s status as a special digital data service provider also exemplifies the regulatory flexibility to adapt to industry changes, ensuring that the Universal Service Regime remains effective and responsive to market dynamics.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.