Telecommunications (Remote Area Rebate) Repeal Regulations 2003 2003 No. 19
EXPLANATORY STATEMENT
Statutory Rules 2003 No. 19
Issued by the authority of the Minister for Communications, Information Technology and the Arts
Telecommunications (Consumer Protection and Service Standards) Act 1999
Telecommunications (Remote Area Rebate) Repeal Regulations 2003
Section 160 of the Telecommunications (Consumer Protection and Service Standards) Act 1999 (the Act) provides for the Governor-General to make regulations under the Act. Section 107 of the Act allows regulations to formulate a scheme to give benefits to a designated customer (a customer of a carriage service provider who is not in a standard zone) where the benefits:
(a) relate to charges for calls made using a standard telephone service supplied to the customer; and
(b) are comparable to the benefits given to eligible customers under section 104 of the Act (which deals with the requirement to provide an untimed local call option).
The Telecommunications (Remote Area Rebate) Regulations 1998 were made under section 107 of the Act and require a carrier with whom a customer has a primary service agreement to pay a benefit in the form of a rebate (known as the pastoral rebate) of up to $160.00 per calendar year off the cost of remote area calls. The rebate provided a comparable benefit for customers living outside standard zones for the lack of access to untimed local calls.
The purpose of the accompanying regulations is to repeal the Telecommunications (Remote Area Rebate Regulations) 1998 because the pastoral rebate provided for by those regulations was replaced with the preferential rate rebate. Subsequently, untimed calls at the local rate to community service towns were introduced.
An "Agreement for the provision of untimed local calls, untimed Internet access and other carrier services to Extended Zones" (Extended Zone Agreement) dated 1 June 2001 between the Commonwealth and Telstra provides for the introduction of untimed calls at the local call rate and other services in non-standard or extended zones. The implementation of the first stage of the Agreement on 31 July 2001 resulted in untimed calls at the local call rate becoming available to all end-users in "Extended Zones" for calls within an Extended Zone and to adjacent Extended Zones. However, as an interim measure calls between customers in an Extended Zone and its designated "Community Service Town" and the Community Service Towns of the adjacent Extended Zones were charged at a preferential rate of 27.5 cents (incl GST) per 12-minute block of time or part thereof.
The Extended Zone Agreement states that:
As of 31 July 2001, the existing Pastoral Rebate will be removed and, pending the provision of untimed calls to Community Service Towns, a rebate off the preferential rate will be paid to customers, with the amount of the rebate and other relevant arrangements to be agreed between the Commonwealth and the Contractor by separate agreement or stipulated under any regulations issued under the Telecommunications (CPSS) Act.
The preferential rate rebate has been implemented by a separate agreement dated 9 December 2002 between the Commonwealth and Telstra.
The second stage of the Extended Zone Agreement provides that, as early as 31 July 2002 and by April 2003 at the latest, calls between customers in EZs and CSTs will be at the untimed local call rate. The implementation of the second stage of the Agreement on 31 July 2002 resulted in untimed calls at the local call rate becoming available between EZs and CSTs.
Details of the accompanying regulations are in the Attachment.
The accompanying regulations commence on gazettal.
ATTACHMENT
DETAILS OF THE REGULATIONS
Regulation 1 - Name of Regulations
Regulation 1 provides that the name of the regulations is the Telecommunications (Remote Area Rebate) Repeal Regulations 2003.
Regulation 2 - Commencement
Regulation 2 provides that the regulations commence on gazettal.
Regulation 3 - Telecommunications (Remote Area Rebate) Regulations 1998 - repeal
Regulation 3 provides that Statutory Rules 1998 No. 339 (the Telecommunications (Remote Area Rebate) Regulations 1998) are repealed.
Overview
The Telecommunications (Remote Area Rebate) Repeal Regulations 2003 were enacted by the Parliament of Australia to address the gap left by the removal of the pastoral rebate, which had previously provided benefits to remote area customers in lieu of untimed local calls. These regulations were issued under the authority of the Minister for Communications, Information Technology and the Arts, in accordance with the Telecommunications (Consumer Protection and Service Standards) Act 1999. The policy objective behind these regulations is to ensure that remote area customers receive comparable benefits to those provided to eligible customers under the Act, following the introduction of the preferential rate rebate and untimed local calls at the local rate to community service towns. By repealing the Telecommunications (Remote Area Rebate) Regulations 1998, the new regulations reflect the changes in service standards and the introduction of the Extended Zone Agreement, which has facilitated the provision of untimed calls at local rates in extended zones and community service towns.
Scope and Application
The Telecommunications (Remote Area Rebate) Repeal Regulations 2003 applies to the repeal of the existing Telecommunications (Remote Area Rebate) Regulations 1998, which were enacted under the Telecommunications (Consumer Protection and Service Standards) Act 1999. These regulations primarily concern customers, specifically those designated as living in remote areas outside standard zones, who were eligible for a rebate on their telecommunications charges due to the lack of access to untimed local calls. The scope of the Act extends to entities such as telecommunications carriers who are required to implement the rebate scheme. The geographic reach of the Act is national, applying across Australia to ensure consistent service standards and consumer protections in the telecommunications industry. The repeal of these regulations indicates a shift towards a new scheme that provides comparable benefits through the preferential rate rebate and the introduction of untimed local calls at the local rate to community service towns in extended zones. The application of the Act is further extended through subordinate instruments, which facilitate the transition from the pastoral rebate to the preferential rate rebate.
Key Provisions
The Telecommunications (Remote Area Rebate) Repeal Regulations 2003 (sections 1 to 3) primarily serve to repeal the previous Telecommunications (Remote Area Rebate) Regulations 1998. The repeal is necessary due to the replacement of the pastoral rebate with the preferential rate rebate, as outlined in the explanatory statement. These regulations provide the legal framework to remove outdated provisions and incorporate the new preferential rate rebate system, which is intended to benefit customers in remote areas by providing rebates on calls made within and between designated extended zones and community service towns.
The regulations impose specific obligations on telecommunications service providers, particularly those with agreements under the Extended Zone Agreement. These obligations include the cessation of the pastoral rebate system and the implementation of the new preferential rate rebate system as per the agreement with the Commonwealth. Service providers must ensure that the appropriate rebates are applied to eligible customers, reflecting the changes in the regulatory environment and the new arrangements outlined in the Extended Zone Agreement.
Failure to comply with these regulations could result in legal consequences. Although the specific penalties are not detailed in the explanatory statement, non-compliance with telecommunications regulations generally can lead to enforcement actions by the Australian Communications and Media Authority (ACMA), including fines and other administrative penalties. The exact penalties would depend on the nature and severity of the breach, but they could potentially include substantial monetary fines as stipulated under the Telecommunications (Consumer Protection and Service Standards) Act 1999. Additionally, persistent or significant non-compliance could lead to more severe consequences, including potential criminal charges in cases where the breaches are deemed to be willful or negligent.