Telecommunications (Public Mobile Licence Charge) Regulations 1992 No.
386
EXPLANATORY STATEMENT
Statutory Rule 1992 No. 386
Issued by the Authority of the Minister for Transport and Communications
Telecommunications (Public Mobile Licence Charge) Act 1992
Telecommunications (Public Mobile Licence Charge) Regulations
The Government decided in November 1991 that a third public mobile telecommunications service (PMTS) licence would be issued to provide for greater competition in the mobile communications market. The selection of the third PMTS carrier is currently being conducted by the Department of Transport and Communications.
The licence will be granted in December, and the recipient will be permitted to commence operation on or after 1 July 1993. The third PMTS carrier will compete with the Australian and Overseas Telecommunications Corporation (AOTC) and Optus Communications in the provision of mobile telecommunications services.
The Telecommunications (Public Mobile Licence Charge) Act 1992 (the Act) provides the mechanism by which the Government may receive a monetary sum for the third and any subsequent PMTS licences.
Paragraph 5(b) of the Act provides for a charge to be imposed on the grant of a public mobile licence. In all cases, other than in which tenders were called, the charge payable in respect of the grant of a public mobile licence is such amount as is calculated in accordance with the Regulations. Section 7 of the Act provides that the Governor-General may make Regulations for the purposes of the Act.
The Regulations provide, a formula by which the amount to be paid for a PMTS licence is calculated.
Regulation 1 provides for citation of the Telecommunications (Public Mobile Licence Charge) Regulations.
Regulation 2 defines terms used in the Regulations.
Regulation 3 provides that for the purposes of paragraph 5(b) of the Act, the amount of the charge payable for the grant of a public mobile licence is the amount equal to the amount calculated in accordance with the following formula:
amount offered by applicant
number of licences
The Regulation defines these terms. The 'amount offered by applicant' is defined as the sum of the prices for each licence for which the person is an applicant, being the prices given to the Secretary under subclause 6(2) of the Telecommunications (Allocation Public Mobile Licences) Determination (No. 1) of 1992 by the grantee or negotiated with the Secretary under subclause 7(3) of the Determination.
The 'number of licences' means the number of licences to be granted to the grantee in response to those applications.
The Regulations commence on Gazettal.
Overview
The Telecommunications (Public Mobile Licence Charge) Regulations 1992 were introduced to provide a framework for calculating the charge for the issuance of a third public mobile telecommunications service (PMTS) licence, thereby enabling increased competition within the mobile communications market. Enacted by the Parliament of Australia under the authority of the Minister for Transport and Communications, the Regulations were established to give effect to the provisions of the Telecommunications (Public Mobile Licence Charge) Act 1992. The primary objective of these regulations is to define a formula by which the monetary charge for the grant of a PMTS licence is determined, ensuring a transparent and consistent approach to licensing fees. The policy objective is to facilitate competition by allowing a third major player in the mobile telecommunications sector, alongside existing providers such as the Australian and Overseas Telecommunications Corporation and Optus Communications.
Scope and Application
The Telecommunications (Public Mobile Licence Charge) Regulations 1992 apply to any entity seeking to obtain a Public Mobile Telecommunications Service (PMTS) licence under the Telecommunications (Public Mobile Licence Charge) Act 1992. This Act is relevant to any third-party applicant who wishes to enter the mobile telecommunications market in Australia as a competitor to existing licensees, such as the Australian and Overseas Telecommunications Corporation and Optus Communications. The Act and Regulations provide the legal framework for imposing a charge on the grant of a PMTS licence, ensuring the Government receives a monetary sum for issuing new licences. The jurisdictional reach of these instruments is national, as they are Commonwealth regulations. The Regulations are subordinate instruments that extend the application of the Act by providing a detailed formula for calculating the licence charge, which is not explicitly stated in the Act itself. The Regulations also stipulate that the charge is determined based on the amount offered by the applicant divided by the number of licences to be granted. There are no stated exclusions or exemptions in the provided text, meaning all entities seeking a PMTS licence would be subject to the charge unless otherwise specified in the Act or subordinate legislation.
Key Provisions
The Telecommunications (Public Mobile Licence Charge) Regulations 1992 (the Regulations) establish the framework for calculating the charge imposed on the grant of a public mobile telecommunications service (PMTS) licence. Section 5(b) of the Telecommunications (Public Mobile Licence Charge) Act 1992 (the Act) mandates that a charge must be imposed on the grant of a PMTS licence, except in cases where tenders were called. The amount of this charge is determined in accordance with the Regulations, specifically as per Regulation 3, which stipulates the formula for calculation. The formula is: amount offered by applicant divided by the number of licences.
The Regulations, particularly Regulation 3, impose certain obligations on applicants for PMTS licences. They must offer a specific amount for each licence they apply for, which can be determined either through a given price under the Telecommunications (Allocation Public Mobile Licences) Determination (No. 1) of 1992 or through negotiation with the Secretary. The total charge is then calculated based on this amount offered and the total number of licences to be granted. This ensures a transparent and systematic approach to determining the licence fee, providing clarity and fairness in the licensing process.
There are no explicit offences or penalties outlined in the Regulations for non-compliance with the charge calculation. However, failure to adhere to the stipulated process or provide accurate information could potentially lead to legal challenges or disputes regarding the validity of the licence granted. The implications of such non-compliance would likely be addressed under the broader framework of the Telecommunications Act 1997 and related legislation, where penalties and enforcement actions could be pursued. Given the regulatory nature of the telecommunications sector, adherence to these provisions is critical to maintaining orderly market competition and ensuring compliance with government-imposed standards.