Telecommunications (General) Regulations Amendment 1993 No. 285
EXPLANATORY STATEMENT
STATUTORY RULES 1993 No. 285
Issued by the Authority of the Minister for Communications
Telecommunications Act 1991
Telecommunications (General) Regulations Amendment
Section 406 of the Telecommunications Act 1991 (the Act) provides that the Governor-General may make regulations for the purposes of the Act.
Section 190 of the Act requires carriers to provide AUSTEL (the Australian Telecommunications Authority) with a written tariff of the carrier's charges for basic carriage services (BCS). BCS are defined in section 174 of the Act. The BCS concept is essentially confined to the basic connection and carriage functions on which all commercial telecommunications services are built.
Subsection 194(1) of the Act provides that a carrier must not supply BCS to a person other than a carrier unless a tariff in respect of that service is in force, and the service is included in the tariff. The purpose of section 194 is to provide consumers and competitors with accurate information as to the tariffs and terms and conditions which apply to particular services.
Subsection 194(3) of the Act allows regulations to be made exempting particular BCS or prescribing circumstances in which BCS are exempt from the tariffing requirement in subsection 194(1).
This amendment to the regulations prescribes three circumstances for the purposes of subsection 194(3):
(i) international telecommunications transit traffic;
(ii) short-term technical field trials and market trials;
(iii) international telecommunications accounting rates.
(i) International telecommunications transit traffic
Transit traffic originates outside Australia and terminates outside Australia. For instance, a telephone call from New Zealand to Singapore may be carried in part by an Australian carrier. The tariffs for the carriage of such traffic are negotiated between carriers and are commercially sensitive.
The amendment to the regulations exempts transit traffic from subsection 194(1) to remove any argument that transit traffic is subject to the requirement in subsection 194(1) to file a tariff.
(ii) Technical Field Trials and Market Trials
Before introducing new services to the general community, carriers typically conduct technical field trials and market trials of those new services. These trials allow them to test equipment and systems used to deliver services and market demand for new services.
The regulations exempt technical field trials and market trials from the effect of section 194 where the trials are of limited duration, are conducted in only part of Australia and have been notified in advance to AUSTEL. The requirement for prior notification to AUSTEL will enable AUSTEL to monitor the use of this exemption by carriers.
(iii) International Accounting Rates.
This amendment removes any doubt that an Australian carrier can supply an international BCS to a recognised operator of a public telecommunications network in a country outside Australia without having to include the international accounting rate in its tariff. International accounting rates are commercially sensitive rates negotiated between international carriers to form the basis of the share paid by each carrier to complete the other carrier's calls.
The regulations specifically exempt such charges from subsection 194(1) and thus ensure that the international accounting rate between the Australian and overseas carrier does not need to be tariffed.
The regulations are not intended to exempt from subsection 194(1) an international BCS supplied to a retail customer in Australia. It is intended that the customer charges for such services be included in the carrier's tariff.
Overview
The Telecommunications (General) Regulations Amendment 1993 No. 285 was enacted to address specific gaps and clarify certain provisions within the Telecommunications Act 1991. This amendment was issued by the Authority of the Minister for Communications and made under the statutory authority of the Act, specifically targeting section 194. The primary objective of this amendment is to provide clarity and flexibility regarding the tariffing requirements for basic carriage services (BCS) under the Act. By exempting certain types of BCS, such as international telecommunications transit traffic, short-term technical field trials, market trials, and international accounting rates, from the tariffing requirement, the amendment aims to facilitate smoother operations for carriers, especially in the context of international negotiations and testing of new services. This amendment seeks to ensure that carriers can operate without unnecessary regulatory burdens while maintaining transparency and consumer protection.
Scope and Application
The Telecommunications (General) Regulations Amendment 1993 No. 285 pertains to the Telecommunications Act 1991 and is applicable to telecommunications carriers operating within Australia. It specifically targets the processes and regulations surrounding the provision of basic carriage services (BCS) by these carriers, which are integral to the infrastructure of commercial telecommunications services. The amendment introduces specific circumstances under which certain BCS are exempt from the requirement to file a tariff with AUSTEL, the Australian Telecommunications Authority, thereby affecting how carriers must disclose their charges and terms. The amendment applies to carriers supplying BCS and is intended to address the commercial sensitivities associated with certain types of telecommunications traffic and services. Geographically, the regulations apply within Australia, although they also consider international traffic that may transit Australian carriers. Exemptions are provided for international transit traffic, short-term technical and market trials, and international accounting rates, all of which have been defined to ensure clarity and to protect commercial interests without compromising the regulatory oversight of AUSTEL.
Key Provisions
The Telecommunications (General) Regulations Amendment 1993 No. 285 introduces significant changes to the existing telecommunications regulations under the Telecommunications Act 1991. Section 194 of the Act, which mandates that carriers must provide written tariffs for basic carriage services (BCS), is amended to exempt certain types of telecommunications traffic from the tariffing requirement. Specifically, the amendment exempts international telecommunications transit traffic (Section 194(3)(i)), short-term technical field trials and market trials (Section 194(3)(ii)), and international telecommunications accounting rates (Section 194(3)(iii)) from the need to file a tariff. These exemptions are designed to provide flexibility and address the specific needs of the telecommunications industry, particularly in relation to commercially sensitive information.
Under the amended regulations, carriers are no longer required to include tariffs for international telecommunications transit traffic, which involves traffic that originates and terminates outside Australia. This change aims to prevent any legal disputes regarding the applicability of tariff requirements to such traffic. Additionally, carriers conducting technical field trials and market trials are exempt from the tariffing requirement, provided these trials are of limited duration, conducted in a specific part of Australia, and are notified to AUSTEL in advance. This ensures that AUSTEL can monitor the use of this exemption and maintain oversight of the telecommunications services being tested. Furthermore, the amendment allows Australian carriers to supply international BCS to recognised operators of public telecommunications networks abroad without including the international accounting rate in their tariffs. This exemption addresses the commercial sensitivity of international accounting rates, which are negotiated between carriers to determine the share of costs for completing calls between carriers in different countries.
The obligations imposed by the Telecommunications (General) Regulations Amendment 1993 No. 285 primarily revolve around the notification and reporting requirements for carriers. Carriers must notify AUSTEL in advance of any technical field trials and market trials being conducted, ensuring transparency and allowing for regulatory oversight. This requirement is crucial for maintaining the integrity of the telecommunications market and ensuring that new services are properly tested before being introduced to the general public. The amendment also ensures that the charges for international BCS supplied to retail customers in Australia remain within the scope of the carrier's tariff, thereby maintaining consumer protection and market transparency.
Breaches of the regulations can result in significant penalties. While the specific penalties are not detailed in the amendment itself, the general framework provided by the Telecommunications Act 1991 suggests that violations could lead to substantial fines. The exact penalties would depend on the nature and severity of the breach, but the overarching aim is to enforce compliance and protect the interests of consumers and the broader telecommunications market. By exempting certain types of traffic from tariff requirements, the amendment seeks to balance the need for commercial flexibility with the imperative to maintain a transparent and regulated telecommunications environment.