Telecommunications (Freephone and Local Rate Numbers Auctions - Registration Charge) Determination 2006 (No. 1)

Administered by Department of Communications and the Arts

Legislation au F2006L01974 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Issued by the authority of the Australian Communications and Media Authority

 

Telecommunications (Freephone and Local Rate Numbers Auctions — Registration

Charge) Determination 2006 (No. 1)

 

Australian Communications and Media Authority Act 2005

 

Purpose

 

The Telecommunications (Freephone and Local Rate Numbers Auctions – Registration Charge) Determination 2006 (No. 1) (the Determination) has been made to revoke and replace the Telecommunications (Freephone and Local Rate Numbers Auctions – Registration Charge) Determination 2005 (No. 1) in order to remove the goods and services tax (GST) from the charges imposed by that determination.  These fees become exempt from GST because of the A New Tax System (Goods and Services Tax) (Exempt Taxes, Fees and Charges) Determination 2006. 

 

The Determination also updates references to the Australian Communications Authority (ACA) with references to the Australian Communications and Media Authority (ACMA).  ACMA was established on 1 July 2005, and performs the merged functions of the ACA and the Australian Broadcasting Authority.  Legislative references to the replacement act, the Australian Communications and Media Authority Act 2005 (the ACMA Act), have also been updated.

 

Legislative Provisions

 

Subsection 60(1) of the ACMA Act provides that ACMA may, by written instrument, make determinations fixing charges.

 

A determination made under subsection 60(1) of the ACMA Act is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

 

Background

 

Section 60 of the ACMA Act obliges ACMA to ensure accurate cost recovery and charging. Consequently, ACMA has adopted a rigorous Activity Based Costing (ABC) methodology to ensure the costings which underpin pricing decisions accurately and equitably attribute costs to the range of outputs which ACMA provides to clients. In ensuring its cost recovery regime is robust, ACMA has employed an external financial consultancy firm in a quality assurance role.

 

This determination sets a fee to recover expenses incurred by ACMA in providing a registration facility for those people wishing to participate in public auctions using the smartnumbers™ auction system for allocating 13, 1300 and 1800 telephone numbers. This is an online system established by the Telecommunications (Freephone and Local Rate Numbers) Allocation Determination 2005 (No. 1).

 

The fee set by this determination will not be imposed on eligible charities seeking to register for special charities auctions on the smartnumbers™ auction system, which is the preferential allocation process described by the Telecommunications (Freephone and Local Rate Numbers — Charities) Allocation Determination 2005 (No. 1).

 

The registration fee has been determined on a ‘user pays’ basis, and in addition to cost-recovery is intended to serve the purposes of:

  • deterring parties that do not have a legitimate interest in participating in the allocation process from using the auction system, thereby reducing the potential for system failure and reducing the potential for improper behaviour in the auction process; and
  • providing a means of identity verification (relevant to ensuring systems integrity).

 

The expenses to be incurred in relation to registration for public auctions that are to be recovered are:

  • capital costs attributable to the IT system component used to support the registration process;
  • registration IT system operation and maintenance costs;
  • the cost of help desk support for the new registration system;
  • costs associated with internal and external reporting that relates to the registration process;
  • the cost of activity relating to deregistration or deactivation of registrations to remedy anomalies in auction activity; and
  • the costs of processing the registration fee, including expenses incurred in relation to payment using an Online Payment Gateway.

 

The fee has been set on the basis of the assumption that there will be 1200 registrations to participate in public auctions per year over five years. This assumption is based on analysis of demand for numbers.

 

Consultation

There was no consultation on the Determination.  The Determination is of a minor or machinery nature and does not substantially alter existing arrangements.

 


NOTES ON SECTIONS

 

Section 1 — Name of Determination

 

This is the determination title.

 

Section 2— Commencement

 

This section provides for the determination to commence on 1 July 2006.

 

Section 3 — Revocation

 

Section 3 provides that the Telecommunications (Freephone and Local Rate Numbers Auctions — Registration Charge) Determination 2005 (No. 1) is revoked. This means that the previous instrument has no effect because it is superseded by the determination to which this statement relates.

 

Section 4 – Definitions

 

This section defines words and references to legislation and subordinate instruments referred to in the determination. Specifically, the section includes references to an Allocation Determination.

 

Section 5— Purpose of this Determination

 

This section states the purpose of the determination is to fix the charges to be applied to recover expenses incurred in providing registration services under an Allocation Determination.

 

Subsection ( 1) states that ACMA is authorised by subsection 60 (1) of the ACMA Act to fix charges for services provided by ACMA and to recover expenses incurred under specified Acts (including the Telecommunications Act 1997).

 

Subsection (2) states that ACMA may, pursuant to section 463 of the Telecommunications Act 1997, determine a system for allocating specified numbers to carriage service providers. The subsection also states that ACMA has determined

such a system via an Allocation Determination.

 

Subsection (3) states that ACMA will incur expense in providing registration facilities set down in an Allocation Determination.

 

Subsection (4) confirms that the purpose of the determination is to fix a charge for the purposes of recovering those expenses.

 

Section 6 — Charge

 

This section states that the charge which is to be applied is specified in Schedule 1.

 

Section 7—By whom and when is the charge payable

 

This section specifies when and by whom a charge is payable. Specifically, subsection (1) states that the charge is payable in accordance with the Allocation Determination.

 

Subsection (2) states that the charge is not payable by charities which meet the definition of eligible charity. The exemption for eligible charities applies to applications for registration lodged under the Allocation Determination.

 

Schedule 1—Charges payable

 

Schedule 1 specifies the charge for applications for registration under the Allocation Determination.  The fee is specified for the Allocation Determination,

notwithstanding that eligible charities are exempt under subsection 6(2). Their participation in the auction process as eligible charities is governed by the terms of the Allocation Determination.

Overview

The Telecommunications (Freephone and Local Rate Numbers Auctions — Registration Charge) Determination 2006 (No. 1), enacted by the Australian Communications and Media Authority (ACMA), was introduced to address the need for accurate cost recovery and charging mechanisms within the telecommunications sector, specifically in relation to the registration of participants in the allocation of freephone and local rate telephone numbers. This Determination serves to replace its predecessor from 2005, ensuring that registration fees are exempt from goods and services tax (GST) as per the A New Tax System (Goods and Services Tax) (Exempt Taxes, Fees and Charges) Determination 2006. It also updates references from the Australian Communications Authority (ACA) to the Australian Communications and Media Authority (ACMA), reflecting the organisational changes that occurred on 1 July 2005. The primary objective of this Determination is to establish a registration fee for those participating in the public auctions for telephone numbers, while exempting eligible charities from this charge, thereby ensuring a fair and efficient allocation process.

Scope and Application

The Telecommunications (Freephone and Local Rate Numbers Auctions — Registration Charge) Determination 2006 (No. 1) applies to persons or entities seeking to participate in public auctions for the allocation of 13, 1300, and 1800 telephone numbers through the smartnumbers™ auction system, as established by the Telecommunications (Freephone and Local Rate Numbers) Allocation Determination 2005 (No. 1). This determination is made under the Australian Communications and Media Authority Act 2005, which empowers the Australian Communications and Media Authority (ACMA) to fix charges to recover the expenses incurred in providing the registration facility for these auctions. The determination is effective across Australia and applies to all participants in the auctions, except for eligible charities who are exempt from the registration charge under the Telecommunications (Freephone and Local Rate Numbers — Charities) Allocation Determination 2005 (No. 1). The charge is set to recover specific costs associated with the registration process, including capital and operational IT costs, help desk support, reporting, and processing fees. The determination also removes the goods and services tax (GST) from the charges imposed by the 2005 version of this instrument, aligning with the A New Tax System (Goods and Services Tax) (Exempt Taxes, Fees and Charges) Determination 2006. This legislative instrument updates references from the Australian Communications Authority to ACMA, reflecting the establishment of ACMA on 1 July 2005.

Key Provisions

The Telecommunications (Freephone and Local Rate Numbers Auctions — Registration Charge) Determination 2006 (No. 1) primarily focuses on setting the charges for the registration of participants in public auctions for the allocation of specific telephone numbers, including 13, 1300, and 1800 numbers, through the smartnumbers™ auction system. This Determination revokes and replaces the previous 2005 version to adjust the charges in light of the removal of the goods and services tax (GST) from these fees, as per the A New Tax System (Goods and Services Tax) (Exempt Taxes, Fees and Charges) Determination 2006 (subsection 6(1)). Additionally, it updates references to the Australian Communications Authority (ACA) to the Australian Communications and Media Authority (ACMA) in line with the establishment of ACMA on 1 July 2005. The Determination outlines specific obligations for ACMA, which includes the establishment of a registration fee for those wishing to participate in public auctions using the smartnumbers™ auction system. This fee is meant to cover the costs associated with providing the registration facility and is set on a ‘user pays’ basis. Notably, eligible charities are exempt from this fee when registering for special charities auctions (subsection 6(2)). The primary expenses covered by this fee include capital costs for the IT system, registration IT system operation and maintenance costs, help desk support, internal and external reporting, deregistration or deactivation costs, and the processing costs of the registration fee itself (subsection 6(3)). In terms of compliance, parties or entities wishing to participate in public auctions must pay the specified registration charge unless they qualify as eligible charities, in which case they are exempt from the fee. The Determination ensures that ACMA can accurately recover its costs and deter illegitimate participation in the auction process. Non-compliance with the payment of the specified charge could potentially lead to disqualification from participating in the auction, thereby affecting the ability to secure the desired telephone numbers. There are no explicit offences, penalties, or civil/criminal consequences detailed in the Determination itself. However, failure to comply with the payment requirements for the registration fee could result in the participant being unable to engage in the auction process, which is a significant consequence for those seeking to acquire freephone or local rate numbers. The Determination’s focus is on ensuring that ACMA can effectively recover its costs while maintaining the integrity of the auction system.

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