EXPLANATORY STATEMENT
Statutory Rule No. 386 of 1988 Issued by the Authority of the Minister for Telecommunications and Aviation Support
Subject - Telecommunications Act 1975
Telecommunications Regulations (Amendment)
Section 112 of the Telecommunications Act 1975 (the Act) provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters which by the Act are required or permitted to be prescribed by the regulations, or which are necessary or convenient to be prescribed by the regulations for carrying out or giving effect to the Act.
Subsections 11(1) and (2) of the Act provide that the Australian Telecommunications Commission (the Commission) may make determinations fixing or varying rentals and charges for telecommunications services and other services that the Commission provides under the Act.
Subsection 11(6) of the Act provides that the Commission shall publish in the Gazette particulars of rentals and charges determined by it, other than prescribed rentals and charges.
The Minister for Telecommunications and Aviation Support decided that regulations should be made to prescribe certain rentals and charges determined in relation to specified Commission services for the purpose of subsection 11(6) of the Act.
The Telecommunications Regulations (Amendment) inserts a new regulation 40A in the Telecommunications Regulations (subclause 2) to provide that, for the purposes of subsection 11(6) of the Act, rentals and charges in respect of the supply of certain telecommunications services set out in the proposed regulation are prescribed rentals and charges. The services to which the new regulation applies are:
• the supply and installation of customer premises telecommunications cabling;
• the supply, installation and maintenance of value-added telecommunications services; and
• the supply, installation and maintenance of customer equipment other than small business telecommunications systems.
Subregulation 40A(2) gives an exclusory definition of “value-added services”.
The regulations commence on 1 January 1989, the date that the Commission is required to compete in the market place in relation to the prescribed services. The regulations are necessary as the Commission would otherwise have to gazette commercially sensitive information, which would limit its ability to respond quickly and flexibly to any developments in the pricing practices of its competitors.
Overview
The Telecommunications Regulations (Amendment) Statutory Rule 1988 was enacted to address the need for specific regulations regarding the rental and charges for certain telecommunications services provided under the Telecommunications Act 1975. This amendment was made by the Minister for Telecommunications and Aviation Support, who recognised that without specific regulations, the Australian Telecommunications Commission (the Commission) would have to publish commercially sensitive information in the Gazette, potentially limiting its flexibility in the marketplace. The policy objective of this amendment is to ensure that the Commission can efficiently and effectively compete in the market without the constraints of publicising potentially sensitive pricing information. The regulations, which include the insertion of new regulation 40A in the Telecommunications Regulations, prescribe specific rentals and charges for the supply and installation of customer premises telecommunications cabling, the supply, installation, and maintenance of value-added telecommunications services, and the supply, installation, and maintenance of customer equipment, excluding small business telecommunications systems.
Scope and Application
The Telecommunications Regulations (Amendment) Statutory Rule No. 386 of 1988 amends the Telecommunications Regulations 1976 to prescribe certain rentals and charges for specified services provided by the Australian Telecommunications Commission under the Telecommunications Act 1975. The amendments are made to ensure that commercially sensitive information regarding the pricing of certain telecommunications services is not published, thereby allowing the Commission to respond more effectively to market developments. Specifically, the regulations apply to the supply and installation of customer premises telecommunications cabling, the supply, installation and maintenance of value-added telecommunications services, and the supply, installation and maintenance of customer equipment other than small business telecommunications systems. These prescribed services are intended to maintain the competitive position of the Commission as it enters the marketplace from 1 January 1989. The regulations are applicable nationally across Australia and are subject to further refinement through subordinate instruments as deemed necessary by the Minister for Telecommunications and Aviation Support.
Key Provisions
The Telecommunications Regulations (Amendment) introduces a new regulation, 40A, into the existing framework under section 11(6) of the Telecommunications Act 1975. This new regulation prescribes specific rentals and charges for certain telecommunications services that were previously determined by the Australian Telecommunications Commission (ATC) under section 11(1) and (2). Regulation 40A sets out the prescribed rentals and charges for the supply and installation of customer premises telecommunications cabling, the supply, installation, and maintenance of value-added telecommunications services, and the supply, installation, and maintenance of customer equipment other than small business telecommunications systems. By inserting this regulation, the Act aims to streamline the process of determining and publishing these charges, reducing the need for the ATC to gazette commercially sensitive information.
The Telecommunications Regulations (Amendment) imposes several obligations on the ATC, particularly in relation to the prescribed services mentioned. Firstly, the ATC is required to adhere to the prescribed rentals and charges outlined in regulation 40A, rather than determining these charges independently. This reduces the administrative burden on the ATC and allows for more efficient market competition. Secondly, the ATC must ensure that the prescribed charges are published in the Gazette, as required by section 11(6) of the Act. This transparency measure ensures that stakeholders are informed of the charges applicable to the specified services.
Under the Telecommunications Regulations (Amendment), there are no direct criminal or civil penalties for breaching the prescribed rentals and charges outlined in regulation 40A. However, failure to comply with the requirement to publish these charges in the Gazette could result in regulatory consequences for the ATC. This could include scrutiny from regulatory bodies and potential reputational damage. Additionally, if the ATC fails to adhere to the prescribed charges, it could face legal challenges from consumers or competitors, leading to potential financial and reputational consequences.
In conclusion, the Telecommunications Regulations (Amendment) introduces a new regulation, 40A, that prescribes specific rentals and charges for certain telecommunications services provided by the ATC. This amendment aims to streamline the process of determining and publishing these charges, reduce the administrative burden on the ATC, and promote market competition. The ATC is obligated to adhere to the prescribed charges and ensure transparency by publishing these charges in the Gazette. While there are no direct criminal or civil penalties for breaching the prescribed charges, non-compliance could result in regulatory scrutiny and potential legal challenges.