Explanatory Statement
Telecommunications Act 1997
Telecommunications Service Provider (Premium Services) Revocation Determination 2013
Issued by the Australian Communications and Media Authority
Purpose
The Telecommunications Service Provider (Premium Services) Revocation Determination 2013 (the Revocation Instrument) revokes the Telecommunications Service Provider (Premium Services) Determination 2004 (No. 1) (the Premium Services Determination).
Legislative Provisions
The Premium Services Determination is made under subsection 99(1) of the Telecommunications Act 1997 (the Telecommunications Act).
Subsection 33(3) of the Acts Interpretation Act 1901 provides that the power to make an instrument includes, unless contrary intention appears, a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend or vary any such instrument.
The Australian Communications and Media Authority (the ACMA) may revoke a determination made under subsection 99(1) of the Telecommunications Act provided the consultation requirements in subsection 99(4) of the Telecommunications Act have been met.
The Revocation Instrument is a legislative instrument subject to disallowance under the Legislative Instruments Act 2003 (the LI Act).
Background
The objective of the Premium Services Determination was to raise awareness of premium services and how they operate, to enable telecommunications customers to control their use of and expenditure on premium services, and to minimise the risk of incurring an unexpectedly high bill. The Premium Services Determination requires telecommunications carriers to periodically inform their customers about how to manage the costs of these services and of the complaint handling arrangements for aggrieved customers.
The premium services market has undergone significant change since 2004. Consumer demand has seen much of the premium services content migrate to the internet, where safeguards for these services are provided for under other legislative instruments. In 2013, the ACMA reviewed the operation of the Premium Services Determination to consider whether the determination was meeting its objectives and if the objectives were still relevant in the changed regulatory environment.
Research undertaken and submissions provided as part of the review indicated that there has been a significant decline in consumer complaints about premium services and complaints have remained at very low levels for some time. The review demonstrated that the issues which the Premium Services Determination was made to address have ceased to be of significant concern. Additionally, the protections offered by the determination are now available through other regulatory measures, such as the Telecommunications Consumer Protection Code C628:2012 (TCP Code).
Accordingly the ACMA has decided that it is appropriate to revoke the Premium Services Determination.
Consultation
As part of its review of the operation of the Premium Services Determination, the ACMA undertook public consultation which proposed three options – to revoke the Premium Services Determination, to vary it or to allow the determination to sunset on 1 October 2015 in accordance with section 50 of the LI Act. As well as the consultation with stakeholders through the review, the ACMA also consulted with the Australian Competition and Consumer Commission as required under subsection 99(4) of the Telecommunications Act. The ACMA received a wide range of views during the consultation; submissions from Industry stakeholders recommending that the Premium Services Determination be revoked, submissions from consumer and dispute resolution stakeholders recommending that the Premium Services Determination be remade with an expanded scope and a government stakeholder recommending that the Premium Services Determination be allowed to sunset. All submitters to the review acknowledged that the premium services industry has declined, and there has been a substantial reduction in consumer complaints and detriment arising from premium voice services.
Regulatory Impact
A preliminary assessment of the regulatory impact was prepared by the ACMA. The Office of Best Practice Regulation (the OBPR) reviewed the preliminary assessment and considered that the amendments were minor in nature and therefore no further analysis (in the form of a Regulation Impact Statement) was required – OBPR reference number 15242.
Statement of Compatibility with Human Rights
Subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011 requires the rule maker in relation to a legislative instrument to which section 42 (disallowance) of the LI Act applies, to cause a statement of compatibility to be prepared in respect of that legislative instrument.
This statement has been prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
The Revocation Instrument, the purpose of which is to revoke the Premium Services Determination, is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
The ACMA has considered whether the Revocation Instrument engages any applicable human rights or freedoms and has formed the view that it does not. The Revocation Instrument is compatible with human rights as it does not raise any human rights issues.
NOTES ON INSTRUMENT
Section 1 – Name of Determination
Section 1 provides that the name of the instrument is the Telecommunications Service Provider (Premium Services) Revocation Determination 2013.
Section 2 – Commencement
This section states that the instrument commences on the day after the instrument is registered on the Federal Register of Legislative Instruments.
Section 3 – Revocation
This section states that the Telecommunications Service Provider (Premium Services) Determination 2004 (No. 1) is revoked.