EXPLANATORY STATEMENT
Telecommunications (Charges) Determination 2009
Australian Communications and Media Authority Act 2005
Legislative Provisions
The Telecommunications (Charges) Determination 2009 (the Determination) has been made by the Australian Communications and Media Authority (the ACMA) to revoke and replace the Telecommunications (Charges) Determination 2007. The Determination updates the application charge which applies to an application mentioned in paragraph 457(1)(a) of the Telecommunications Act 1997 (Telecommunications Act) for the allocation of a number otherwise than in accordance with an allocation system determined under section 463 of the Telecommunications Act.
Subsection 60(1) of the Australian Communications and Media Authority Act 2005 provides that the ACMA may, by written instrument, make determinations fixing charges for services provided by the ACMA and in relation to any matter in which expenses are incurred by the ACMA under the Telecommunications Act. A charge must not be such as to amount to taxation.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Background
The ACMA last reviewed its fees and charges during 2006/07 as part of a scheduled five-yearly review of its cost recovery arrangements. The ACMA's existing fees and charges, including the application charge for numbers, was assessed against cost recovery principles outlined in the Australian Government’s Cost Recovery Guidelines. The next review is expected to be conducted by 2011/12.
The charge for an application made under paragraph 457(1)(a) of the Telecommunications Act has arisen as a result of recent productivity gains realised from an enhancement to the ACMA's online numbering system (NUMB). NUMB is used to manage applications from carriage service providers (CSPs) for telephone numbers such as geographic and digital mobile numbers.
The enhancement significantly reduces the time it takes to submit, and for the ACMA to finalise, an application for numbers. The enhancement applies to applications for geographic numbers, which comprise more than 90% of all applications received by the ACMA. The upgraded version of NUMB commenced during mid May 2009.
The Determination specifies the charges payable to the ACMA to recover the expenses incurred by the ACMA for matters that include:
- considering an application made under subsection 390(1) of the Telecommunications Act for a connection permit for the connection of customer equipment;
- considering an application made under subsection 390(2) of the Telecommunications Act for a connection permit for the connection of customer cabling;
- considering an application to an officer of the ACMA acting as a certification body for a written statement under paragraph 408(5)(a) of the Telecommunications Act; and
- making an application mentioned in paragraph 457(1)(a) of the Telecommunications Act for the allocation of a number otherwise than in accordance with an allocation system determined under section 463 of the Telecommunications Act.
The Determination is named the Telecommunications (Charges) Determination 2009.
Regulation Impact
An exemption from preparing a Regulation Impact Statement has been obtained for the Determination as the proposal does not have a significant impact on business or the economy (exemption ACMA100 refers). A Cost Recovery Impact Statement has not been prepared as the application charge has been reduced, and the difference in revenue resulting from the change in the charge amounts is not expected to be material.
Consultation
The ACMA was satisfied, under subsection 17(1) and pursuant to subsection 18(2) of the Legislative Instruments Act 2003, that consultation in this instance was unnecessary because the change is minor and does not substantially alter existing arrangements.
The enhancement was undertaken as a result of feedback from CSPs and the ACMA’s continuous improvement strategies with a view to improving the process for applying for numbers. The improvement included reducing the time it takes to submit an application. During early 2009, the most frequent submitters of applications were provided with an opportunity to trial and comment on the proposed changes. No adverse comment was received on the proposed changes to NUMB, or on amending the application charge to more accurately reflect the time it would take to process an application once the changes were implemented.
Information on the reduction in the application charge will be made available on the ACMA's website, disseminated through the ACMA's Numbering Advisory Committee (NAC) and to all CSPs that are allocated numbers. Members of the NAC are drawn from the telecommunications industry including CSPs and equipment suppliers, business and consumer representative peak bodies and government departments such as the ACCC and DCBDE. The NAC provides advice and recommendations to the ACMA on numbering related matters.
Commencement of Determination
The Determination commences on 1 August 2009.
Notes on Sections
Section 1 – Name of Determination
Section 1 provides for the citation of the Determination as the Telecommunications (Charges) Determination 2009.
Section 2 – Commencement
Section 2 provides that the Determination commences on 1 August 2009.
Section 3 – Revocation
Section 3 revokes the Determination known as the Telecommunications (Charges) Determination 2007.
Section 4 – Interpretation
Section 4 defines some of the key terms in the Determination and specifies that terms used in the Determination have the same meaning as the Telecommunications Act. Section 4 provides the definition of on-line application.
Section 5 – Purpose of this Determination
Section 5 states the purpose of this Determination is to fix charges for various services provided by the ACMA and expenses incurred by the ACMA under the Telecommunications Act.
Section 6 - Charges
Section 6 specifies the charges, or hourly rate of charge, for various ACMA telecommunications activities by reference to the attached Schedule 1.
Section 7 - By whom and when is the charge payable
Section 7 specifies when and by whom a charge is payable.
Schedule 1 Charges Payable
Item [1] Charge for Connection Permit – Customer Equipment
Item [1] details the charge for considering an application made under subsection 390(1) of the Telecommunications Act for a connection permit for the connection of customer equipment.
Item [2] Charge for Connection Permit – Customer Cabling
Item [2] details the charge for considering an application made under subsection 390(2) of the Telecommunications Act for a connection permit for the connection of customer cabling.
Item [3] Application for Written Statement
Item [3] details the charge for considering an application to the ACMA acting as certification body for a written statement under paragraph 408(5)(a) of the Telecommunications Act.
Item [4] Charge for Allocation of Numbers
Item [4] details the charges payable in relation to making an application for allocation of a number otherwise than in accordance with an allocation system determined under section 463 of the Telecommunications Act and as provided for by section 457 of that Act. This item provides new amounts of charge for on-line and written applications.