EXPLANATORY STATEMENT
Telecommunications (Nominated Carrier Declaration Application Charge) Determination 2007
Australian Communications and Media Authority Act 2005
Legislative Provisions
The Telecommunications (Nominated Carrier Declaration Application Charge) Determination 2007 (the Determination) has been made by the Australian Communications and Media Authority (ACMA) to revoke and replace the Telecommunications (Nominated Carrier Declaration Application Charge) Determination 2006. 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.
Under section 77 of the Telecommunications Act 1997, a carrier may apply to ACMA for a nominated carrier declaration in relation to one or more specified network units. In accordance with section 78, each application must be accompanied by the charge (if any) determined by ACMA.
The Determination specifies the charge to accompany an application to ACMA for a nominated carrier declaration.
The Determination is named the Telecommunications (Nominated Carrier Declaration Application 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 (Nominated Carrier Declaration Application 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 Nominated Carrier Declaration Application Charge) Determination 2006.
Section 4 – Nominated carrier declaration application charge
Section 4 specifies the charge to accompany an application for a nominated carrier declaration. It also states that the charge is payable at the time of application.
Overview
The Telecommunications (Nominated Carrier Declaration Application Charge) Determination 2007 was enacted to address the need for updated charges arising from the Australian Communications and Media Authority's (ACMA) review of its cost recovery fees and charges. This Determination was introduced to ensure that the charges for services provided by ACMA under the Telecommunications Act 1997 remain consistent with the cost recovery principles outlined in the Australian Government’s Cost Recovery Guidelines. The enactment of this Determination by ACMA was authorised under the Australian Communications and Media Authority Act 2005, with the objective of maintaining fair and updated charges without imposing taxation. The policy objective was to ensure that ACMA's cost recovery fees and charges are periodically reviewed to reflect actual costs and to maintain a balanced approach in regulating the telecommunications industry. The Determination came into effect on 1 July 2007, replacing the previous 2006 version.
Scope and Application
The Telecommunications (Nominated Carrier Declaration Application Charge) Determination 2007 applies to entities within the telecommunications industry, specifically carriers and carriage service providers who wish to apply for a nominated carrier declaration under the Telecommunications Act 1997. This Determination sets out the fees that must accompany such applications to the Australian Communications and Media Authority (ACMA), which is the regulatory body established under the Australian Communications and Media Authority Act 2005. The fees are a result of a review conducted by ACMA in alignment with the Australian Government’s Cost Recovery Guidelines and are effective from 1 July 2007, replacing the previous 2006 Determination. The Determination does not apply to any person or entity outside the telecommunications industry or to any applications not related to nominated carrier declarations. ACMA ensures that these charges do not constitute taxation, and any subordinate instruments may extend or refine the application of these charges.
Key Provisions
The Telecommunications (Nominated Carrier Declaration Application Charge) Determination 2007 (the Determination) sets out the updated charges for the application to the Australian Communications and Media Authority (ACMA) for a nominated carrier declaration under the Telecommunications Act 1997 (section 4). This Determination revokes and replaces the Telecommunications (Nominated Carrier Declaration Application Charge) Determination 2006. A carrier seeking a nominated carrier declaration must, in accordance with section 78 of the Telecommunications Act 1997, accompany their application with the specified charge as determined by ACMA.
Entities governed by this Determination are required to adhere to the specified charge outlined in section 4. This includes carriers applying for a nominated carrier declaration, who must ensure that the correct charge is included with their application. The charge must be paid at the time of application, ensuring that ACMA's costs for processing these applications are recovered appropriately.
Failure to comply with the charge requirements set out in the Determination may result in non-acceptance of the application for a nominated carrier declaration. While the Determination does not specify explicit penalties for non-compliance, the non-payment of the required charge could potentially lead to delays or rejection of the application, impacting the carrier's ability to obtain the necessary declaration. It is essential for carriers to ensure they meet the charge requirements to avoid any disruptions in their operations.
In summary, the Determination serves to update the charges for nominated carrier declaration applications, ensuring that ACMA's cost recovery arrangements are aligned with the Australian Government's Cost Recovery Guidelines. Carriers applying for a nominated carrier declaration must adhere to the charge requirements specified in the Determination, and failure to do so could result in the non-acceptance of their application.