Telecommunications (Charges) Determination 2005

EXPLANATORY STATEMENT

Issued by the authority of the Australian Communications Authority

Telecommunications (Charges) Determination 2005

Australian Communications Authority Act 1997

Purpose

To adjust the number allocation applications charge (NAAC) to accommodate new online based applications for numbers on the Australian Communications Authority’s (ACA) website and bulk applications for numbers.

Legislative Provisions

Subsection 53(1)(a) of the Australian Communications Authority Act 1997 (the ACA Act) allows the ACA to make determinations fixing charges for services and facilities provided by the ACA.  Subsection 53 (2) of the ACA Act requires that the charges so fixed “must be reasonably related to the expenses incurred or to be incurred by the ACA in relation to the matters to which the charge relates and must not be such as to amount to taxation.”  Section 7 of the Telecommunications (Numbering Charges) Act 1997 imposes a charge on a carriage service provider for the allocation of a number to it.  Subsection 53(4) of the ACA Act provides that a Determination made under subsection 53(1) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.  The accompanying determination must therefore be published in the Gazette, tabled in Parliament and is subject to Parliamentary disallowance.

Background

Section 53 of the ACA Act obliges the ACA to ensure accurate cost recovery and charging.  Consequently, the ACA has adopted a rigorous Activity Based Costing methodology to ensure the costings which underpin pricing decisions accurately and equitably reflect the costs incurred by the ACA for the services it provides to clients.  In ensuring its cost recovery regime is robust, the ACA has employed an external financial consultancy firm in a quality assurance role. 

The charges for the following items will remain the same as for the Telecommunications (Charges) Determination 2004:  

• connection permit charge for the connection of customer equipment;
• connection permit charge for the connection of customer cabling;
• customer equipment certification charge;

The previous number allocation applications charge (NAAC) ($362.73 per application, excluding GST), set on 19 May 2004, was based on the method and cost of processing number allocation applications (NAAs) submitted using a former numbering management system. Previously, a uniform application charge, based on the average cost of processing NAAs, was imposed regardless of the number of blocks or type of number requested in each NAA. The new numbering management system (new NUMB) is available on the ACA website and supports “online” applications and approvals for each separate block of numbers allocated.  For example, separate applications are required for geographic numbers for different standard zone units (SZUs) and non-contiguous blocks of mobile numbers.  Carriage service providers can submit NAAs online or offline (by paper) and ACA staff input offline NAAs.  For online applications ACA staff will only be required to assess the application. The cost of online and offline applications on new NUMB and bulk applications require a variable charge structure.  The following table summarises the variable charge structure for NAACs in the Determination:

Application Charge Structure

Example

1 application for 2 blocks will incur a charge of $170.50 ($100.00 + $10 +2($27.50 +$2.75)) offline or $137.50 ($100.00 +$10.00 +2($12.50 +$1.25)) online

Consultation

Industry have been consulted through the Numbering Advisory Committee (NAC) about the introduction of new NUMB, and been advised that the basis for the new charges will be per block of numbers rather than per application.  The ACA wrote to 51 CSPs and members of the NAC notifying them of the new charge. The ACA received no objections or comments in relation to the new charge.

The Office of Regulation Review has indicated that the ACA is not required to provide a Regulation Impact Statement (ORR reference number 6670).  A Cost Recovery Impact Statement (CRIS) has been approved by the Department of Finance and Administration.

NOTES ON SECTIONS

Section 1 - Name of determination

This states that the name of the determination is the Telecommunications (Charges) Determination 2005..

Section 2 - Commencement

This section provides for the determination to commence on 30 June 2005.

Section 3 - Revocation

This section states the determination’s predecessor, the Telecommunications (Charges) Determination 2004 is revoked by this determination.

Section 4 - Definitions

This section defines some of the key terms in the determination.

Of note is a new definition of ‘online application’ which means an application submitted electronically on the ACA’s website using the ACA’s number allocation system which, at the time of this instrument, was known as the ACA NUMB on that website.

Section 5 – Purpose of this Determination

This section states the purpose of the Determination which is to fix charges for services and facilities provided by the ACA and any matter in which expenses are incurred by the ACA under specified Acts.

Section 6 - Charges

This section specifies the charges for various ACA telecommunications activities by reference to the attached Schedule 1.

Section 7 - By whom and when the charge is payable

This section specifies when and by whom a charge is payable.

Schedule 1 – Charges payable

Schedule 1 details the charges for specified ACA activities. Of note is a new item 4 that sets out a two-tiered charge for an application for the allocation of a number subject to whether it is an online or non-online application and to the number of blocks of consecutive numbers.