EXPLANATORY STATEMENT
Telecommunications Act 1997
Determination under subsection 51(1) (No. 1 of 2002)
Issued by the authority of the Minister for Communications,
Information Technology and the Arts
Subsection 51(1) of the Telecommunications Act 1997 (Cth) (the Act) enables the Minister to determine that section 42 of the Act does not apply in relation to:
(a) a specified network unit; or
(b) a specified person; or
(c) a specified use of a network unit.
Section 42 of the Act provides that a network unit must not be used to supply a carriage service to the public without a carrier licence or a nominated carrier declaration (which enables a nominated carrier to assume the responsibilities imposed on another carrier in relation to specified network units). Therefore subsection 51(1) of the Act in effect enables the Minister to exempt a specified network unit, a specified person, or a specified use of a network unit, from the licensing requirements.
Subsection 51(4) of the Act provides that an instrument under section 51 is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901 (Cth).
The accompanying determination provides that section 42 of the Act does not apply to a wireless network unit where:
- the unit is used to supply a carriage service to users where the users are not in a distinct place from the Wireless Network Unit; and
- where a carrier licence or nominated carrier declaration would not be required for a fixed line network delivering the same service in the same place.
Background
Wireless local area networks (LANs) are broadband wireless communication technologies. They were originally designed for business local area networks. However their commercial use has grown beyond their original purpose and they are currently being used in a variety of other commercial settings. One of their commercial uses includes their use in ‘hotspots’ which provide connectivity to the Internet to customers in a localised area, such as an Internet cafe, a hotel, or an airport lounge.
Concern has been raised that currently under the Act such networks require a carrier licence or nominated carrier declaration to supply such a service on a single premises, while fixed line networks delivering the same service do not.
The effect of the determination is that a carrier licence or nominated carrier declaration is not required to use a Wireless Network Unit where paragraphs (a) and (b) of the determination are satisfied.
The purpose of the determination is to ensure that the treatment of different technologies for the purposes of licensing under the Act is the same. It will address an anomaly in the carrier licensing regime which has arisen as a result of the emergence of wireless LANs as a substitute for wired networks.
Determination
The accompanying determination provides that section 42 of the Act does not apply to a Wireless Network Unit where the unit is used to supply a carriage service to users where the users are in the same place (ie not a distinct place) as the Wireless Network Unit and where a fixed line network would not require a licence or nominated carrier declaration when delivering the same service in the same place.
A wireless network unit is defined as a network unit which is a base station that is part of a terrestrial radiocommunications access network. A base station that is part of a terrestrial radiocommunications access network has the same meaning as in the Act.
A distinct place is defined in section 36 of the Act. In essence places are distinct unless they are:
- in the same property (ie situated on a property subject to a single freehold or leasehold title);
- contiguous properties and the same person is the principal user of those properties; or
- the same eligible Territory (ie the Territory of Christmas Island and the Territory of Cocos (Keeling) Islands or any prescribed external Territory, as defined in section 7 of the Act).
It is intended to cover places such as a hotel, airport lounge or Internet café.
A fixed line network is defined as a network made up of one or more line links. A line link has the same meaning as in the Act. Section 30 of the Act defines a line link.
Overview
The Telecommunications Act 1997 was enacted by the Australian Parliament to regulate telecommunications services and infrastructure in Australia. It aimed to address the evolving technological landscape and ensure that regulatory frameworks kept pace with changes in telecommunications technology and services. One of the issues it sought to resolve was the inconsistency in the licensing requirements for wireless and fixed-line network units delivering similar services in the same location. This inconsistency was particularly problematic with the rise of wireless local area networks (LANs), which were increasingly used in commercial settings such as Internet cafes and hotel lounges. The Act sought to provide a policy objective of ensuring a fair and consistent regulatory environment for all telecommunications services, avoiding undue burdens on emerging technologies while maintaining necessary oversight. The Explanatory Statement for the 2002 determination under subsection 51(1) of the Act clarifies that a wireless network unit does not require a carrier licence or a nominated carrier declaration if it is used to supply a service in the same location as the users, and a fixed-line network delivering the same service would not need such a licence in the same circumstances. This aims to align the regulatory treatment of wireless and fixed-line networks, addressing an anomaly that had developed due to the increasing use of wireless LANs as alternatives to wired networks.
Scope and Application
The Telecommunications Act 1997 (Cth) includes provisions under which the Minister for Communications, Information Technology and the Arts can determine exemptions to licensing requirements for network units used to supply carriage services to the public. The Act applies to individuals, entities, and specific network units within the Commonwealth of Australia, and its scope can be extended or restricted through subordinate instruments. The recent determination exempts wireless network units from the licensing requirements under section 42 if the unit is used to supply a carriage service to users who are not in a distinct place from the wireless network unit, and where a fixed line network providing the same service in the same location would not require a carrier licence or a nominated carrier declaration. This determination is intended to address an anomaly in the licensing regime that has arisen due to the increasing use of wireless local area networks in commercial settings, ensuring that the regulatory treatment of different technologies remains consistent. The determination is a disallowable instrument under the Acts Interpretation Act 1901 (Cth), allowing for parliamentary scrutiny and potential disallowance.
Key Provisions
The Telecommunications Act 1997 (Cth) contains provisions that generally require a network unit not to be used to supply a carriage service to the public without a carrier licence or a nominated carrier declaration (s 42). However, subsection 51(1) allows the Minister to determine that section 42 does not apply in relation to a specified network unit, person, or use (s 51(1)). The accompanying determination under subsection 51(1) specifies that section 42 does not apply to a wireless network unit when certain conditions are met (s 51(4)). Specifically, the determination exempts a wireless network unit from the licensing requirements if it is used to supply a carriage service to users who are in the same place as the wireless network unit and if a fixed line network delivering the same service in the same place would not require a carrier licence or a nominated carrier declaration (s 51(4)).
The obligations imposed by the determination include ensuring that the wireless network unit is used in compliance with the specified conditions. A wireless network unit is defined as a base station that is part of a terrestrial radiocommunications access network (s 51(4)). A fixed line network is defined as a network made up of one or more line links (s 51(4)). Additionally, the determination outlines what constitutes a "distinct place," which includes places that are in the same property, contiguous properties with the same principal user, or the same eligible Territory (s 36). The purpose is to ensure that the treatment of wireless and fixed line networks is consistent in terms of licensing requirements.
Breach of the provisions under the Telecommunications Act 1997 can result in various consequences. Specifically, if a wireless network unit is used in a manner contrary to the determination, it may be subject to enforcement actions by the Minister or other authorised officers. Although the Act does not explicitly state the penalties for non-compliance, breaches of similar provisions can result in substantial fines and other civil or criminal penalties. The exact penalties would depend on the specific circumstances and any additional legislation applicable at the time of the breach.