EXPLANATORY STATEMENT
Telecommunications (Freephone and Local Rate Numbers Auctions – Registration Charge) Determination 2007
Australian Communications and Media Authority Act 2005
Legislative Provisions
The Telecommunications (Freephone and Local Rate Numbers Auctions – Registration Charge) Determination 2007 (the Determination) has been made by the Australian Communications and Media Authority (ACMA) to revoke and replace the Telecommunications (Freephone and Local Rate Numbers Auctions – Registration Charge) Determination 2006 (No.1). The Determination provides updated charges arising from a review of ACMA’s cost recovery fees and charges.
Subsection 60(1) of the Australian Communications and Media Authority Act 2005 provides that ACMA may, by written instrument, make determinations fixing charges for services provided by ACMA and in relation to any matter in which expenses are incurred by ACMA under the Telecommunications Act 1997. 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
ACMA reviewed its fees and charges as part of a scheduled five-yearly review of its cost recovery arrangements. ACMA reviewed its existing fees and charges against cost recovery principles outlined in the Australian Government’s Cost Recovery Guidelines.
The review resulted in updates to a range of existing charges, including charges for services provided by ACMA under the Telecommunications Act 1997.
The Determination specifies the charges payable to ACMA to recover the expenses incurred by ACMA in providing a registration facility for those people wishing to participate in public auctions using the smartnumbers™ auction system. The smartnumbers™ auction system is used for allocating 13, 1300 and 1800 telephone numbers. This is an online system established by the Telecommunications (Freephone and Location Rate Numbers) Allocation Determination 2005 (No.1) which has been made pursuant to section 463 of the Telecommunications Act 1997.
The registration fee has been determined on a “user pays” basis, and is calculated to recover the activity cost of processing 2,500 registrations per annum. The calculation represents the unit cost of a registration, calculated based on ACMA’s costs divided by the number of registrations. The activity costs in relation to registration for public auctions that are to be recovered include:
- 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 costs 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 Determination is named the Telecommunications (Freephone and Local Rate Numbers Auctions – Registration Charge) Determination 2007.
Regulation Impact
ACMA has obtained the advice of the Office of Best Practice Regulation (formerly the Office of Regulation Review) that a Regulation Impact Statement is not required for the Determination as the proposal does not have a significant impact on business or the economy. A Cost Recovery Impact Statement has been prepared which outlines the basis for calculating the charges payable.
Consultation
A consultation paper about the review of ACMA’s existing cost recovery fees and charges was released for public comment on 22 December 2006. The consultation paper proposed the change in fees for registration in this Determination. The consultation paper was also published on ACMA’s website and was provided directly to telecommunications carriers, carriage service providers and to a range of industry bodies and associations. .
ACMA received five submissions on the proposed arrangements.
Commencement of Determination
The Determination commences on 1 July 2007
Notes on Sections
Section 1 — Name of Determination
Section 1 provides for the citation of the Determination as the Telecommunications (Freephone and Local Rate Numbers Auctions – Registration Charge) Determination 2007
Section 2 – Commencement
Section 2 provides that the Determination commences on 1 July 2007.
Section 3 – Revocation
Section 3 revokes the Determination known as the Telecommunications (Freephone and Local Rate Numbers Auctions — Registration Charge) Determination 2006 (No. 1).
Section 4 – Definitions
Section 4 defines some of the key terms in the determination. Specifically, the section includes the definitions of Allocation Determination and eligible charity.
Section 5— Purpose of this Determination
Section 5 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.
Section 6 — Charge
Section 6 specifies the charge which is to be applied 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. 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
Item [1] Fee for Registration
Item [1] details the fee to be paid in relation to an application for registration under an Allocation Determination.