Telecommunications Universal Service Obligation (Declaration Deferral Period) Declaration 2017

Administered by Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts

Legislation au F2017L00699 In force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Telecommunications (Consumer Protection and Service Standards) Act 1999

 

Telecommunications Universal Service Obligation (Declaration Deferral Period) Declaration 2017

 

Issued by the Authority of the Minister for Communications

 

Authority

 

The Telecommunications Universal Service Obligation (Declaration Deferral Period) Declaration 2017 (the Declaration) is made by the Minister for Communications (the Minister) under paragraphs 8J(1)(b) and 8K(1)(b) of the Telecommunications (Consumer Protection and Service Standards) Act 1999 (the Act).  These provisions enable the Minister to declare a ‘declaration deferral period’ in relation to alternative contractual arrangements for standard telephone services (STS) and payphones universal service obligation (USO).

 

Purpose

 

The Declaration provides that the 24-month period starting immediately after the Declaration is made is the ‘declaration deferral period’ for the purposes of sections 8J and 8K of the Act.

 

The Declaration is a legislative instrument for the purposes of subsection 8(2) of the Legislation Act 2003 (see subsections 8J(8) and 8K(8) of the Act).

 

Background

 

The USO is Australia’s base-level telecommunications consumer safeguard. Specifically, Telstra, as the Primary Universal Service Provider (PUSP), must ensure that STS and payphones are reasonably accessible to all people in Australia on an equitable basis (under paragraphs 9(1)(a) and 9(1)(b) of the Act.

In June 2011, the Government announced it had entered into an agreement with Telstra for the delivery of certain public interest telecommunications services which included the provision of the STS and payphones under the USO (Telstra Agreement). This agreement commenced on 1 July 2012 and remains in force with neither party having given notice of termination of the agreement. The agreement has undergone amendments since its execution; however, these have not been relevant to the STS or payphones USO Modules for the purposes of this declaration.

In 2012, the Parliament passed legislation establishing a framework for phasing out the legislated USO and replacing it with a contractual framework under the Telecommunications Universal Service Management Agency Act 2012 and the Telecommunications Legislation Amendment (Universal Service Reform) Act 2012. As part of that legislative package, sections 8J and 8K in their original form were inserted into the Act to enable the progressive removal of STS and payphone USO obligations from Telstra.

Under sections 8J and 8K in their original form, the Minister was required to make declarations as to whether there were satisfactory alternative contractual arrangements relating to STS and payphone services or declare the ‘first declaration deferral period’ for the purposes of those sections. As a result, the Minister made the Telecommunications Universal Service Obligation (First Declaration Deferral Period) Declaration 2014, which had the effect of deferring the declaration that there were satisfactory contractual arrangements for delivery of STS and payphones. The Minister’s declaration was largely based on impending negotiations that included possible changes to the Telstra Agreement. The Minister determined that the Government could not consider lifting the regulatory requirements during the re-negotiation process due to the possibility of modifications to the delivery of the STS and payphone services.

The Telecommunications Universal Service Management Agency was abolished in 2015 and its functions were transferred to the Department of Communications (see the Telecommunications Legislation Amendment (Deregulation) Act 2015). At that time, sections 8J and 8K of the Act were repealed and substituted with new provisions. Those amendments simplified the operation of sections 8J and 8K, but the processes set out in those provisions remain substantially the same (see Schedule 1 to the Telecommunications Legislation Amendment (Deregulation) Act 2015). The re-enacted sections 8J and 8K commenced on 1 July 2015.

Under subsection 8J(1) of the Act, the Minister must make a declaration as to whether there are satisfactory alternative contractual arrangements in place for STS or that the 24-month period starting immediately after the declaration is made is the ‘declaration deferral period’ for the purposes of section 8J. This declaration must take place during the period of 24 months that began at the commencement of section 8J. Separately, and during the same time period, under subsection 8K(1) of the Act, the Minister must make a similar declaration in relation to satisfactory alternative contractual arrangements for payphones.

In relation to both STS and payphones, the Minister is not able to make a declaration that there are satisfactory alternative contractual arrangements unless certain criteria are satisfied. These include that the Telstra Agreement remains in force, and the Minister is satisfied that Telstra is likely to substantially comply with the agreement if this part of USO regulation is removed.  In deciding whether Telstra is likely to substantially comply with the agreement, the Minister must have regard to a range of non-exhaustive criteria, including Telstra’s record of compliance with relevant contractual obligations and the nature of those obligations, as well as Telstra’s compliance with its regulatory obligations (including Part 2 of the Act and Part 5 of the Act,) (subsections 8J(4) and 8K(4)).

The Minister has decided to defer the lifting of regulatory USO obligations in relation to both STS and payphones. In reaching this decision, the Minister had regard to the Productivity Commission’s (PC) inquiry into the future of the USO. Due to the need for the government to consider future USO policy and reform, including the Telstra Agreement, resulting from the PC’s inquiry, the Minister does not consider that it is possible to declare that satisfactory contractual arrangements exist for STS and payphones.

The effect of the Declaration is that USO regulatory obligations in relation to STS and payphones continue to apply at least until the end of the ‘declaration deferral period.’  The declaration deferral period lasts for 24 months after the declaration is made. Before the end of the declaration deferral period, the Minister must make another declaration as to whether or not there are satisfactory alternative contractual arrangements in place for STS and/or payphones (subsections 8J(3) and 8K(3)).

 

Consultation

 

Consultation was undertaken with the Australian Communications and Media Authority (ACMA).

 

Regulatory impact

The Office of Best Practice Regulation (OBPR) has advised that, as the proposal does not alter existing regulatory obligations, a Regulatory Impact Statement is not required. The OBPR reference number is 21927.

 

Statement of compatibility with human rights

This statement of compatibility is prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

The Declaration provides that the 24-month period starting immediately after the Declaration is made is the declaration deferral period for the purposes of sections 8J and 8K of the Act.  The Declaration, in essence, retains the status quo arrangements in relation to the STS and payphone USO obligations.

 

The Declaration 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.  It does not engage any of the applicable rights or freedoms and does not raise any human rights issues.

 

 

Notes on sections

Section 1 - Name of Declaration

Section 1 provides that the name of the Declaration is the Telecommunications Universal Service Obligation (First Declaration Deferral Period) Declaration 2017.

Section 2 - Commencement

Section 2 provides that the Declaration commences on the day after it is registered on the Federal Register of Legislative Instruments.

Section 3 - Authority

Section 3 provides that the Declaration is made under paragraphs 8J(1)(b) and 8K(1)(b) of the Act.

Section 4 - Definitions

Section 4 defines the terms used in the Declaration.

Section 5 - Declaration

Section 5 provides that the 24-month period starting immediately after the Declaration is made is the declaration deferral period for the purposes of sections 8J and 8K of the Act. 

Overview

The Telecommunications (Consumer Protection and Service Standards) Act 1999, enacted to protect consumers and set service standards within the telecommunications industry, addresses issues related to universal service obligations (USO) and service quality. The Act, passed by the Australian Parliament, establishes a framework to ensure that all Australians have access to essential telecommunications services on equitable terms. The Telecommunications Universal Service Obligation (Declaration Deferral Period) Declaration 2017 was made by the Minister for Communications under the authority of the Act, aiming to defer the declaration of satisfactory alternative contractual arrangements for standard telephone services and payphones. This deferral was necessary to allow further consideration of the future USO policy and reform, influenced by the Productivity Commission’s inquiry into the USO. The Declaration sets a 24-month period from its enactment as the deferral period, during which the regulatory obligations continue to apply, ensuring the ongoing accessibility of these services until further assessment is completed.

Scope and Application

The Telecommunications Universal Service Obligation (Declaration Deferral Period) Declaration 2017 applies to the regulation of standard telephone services and payphones within Australia, specifically under the Telecommunications (Consumer Protection and Service Standards) Act 1999. It is made by the Minister for Communications under the authority granted by sections 8J(1)(b) and 8K(1)(b) of the Act. This legislation is pertinent to Telstra, as the Primary Universal Service Provider (PUSP), which is obligated to ensure that these services are reasonably accessible across the country. The Declaration sets a 24-month deferral period from the date of its enactment, during which the existing regulatory obligations for the universal service obligation (USO) in relation to standard telephone services and payphones will continue. The purpose of this Declaration is to allow time for the review and potential renegotiation of the Telstra Agreement, which governs the delivery of these services, without prematurely lifting the regulatory requirements. This ensures that the necessary protections for consumers remain in place while the government considers future policy directions and reform options. The Declaration does not specify any exclusions or exemptions, and its application is strictly within the Commonwealth jurisdiction. The Declaration is compatible with human rights as it does not alter existing regulatory obligations and therefore does not raise any human rights issues.

Key Provisions

The main operative sections of the Telecommunications Universal Service Obligation (Declaration Deferral Period) Declaration 2017 (sections 1 to 5) establish the name, commencement, authority, definitions, and the declaration itself. Section 1 names the Declaration, section 2 sets its commencement date as the day after registration on the Federal Register of Legislative Instruments, section 3 provides the authority under which the Declaration is made (paragraphs 8J(1)(b) and 8K(1)(b) of the Telecommunications (Consumer Protection and Service Standards) Act 1999), section 4 defines key terms used in the Declaration, and section 5 declares the 24-month period starting immediately after the Declaration as the 'declaration deferral period' for the purposes of sections 8J and 8K of the Act. The Act imposes several obligations and requirements on the parties and entities it governs. Primarily, it requires the Minister for Communications to make a declaration regarding the existence of satisfactory alternative contractual arrangements for standard telephone services (STS) and payphones universal service obligation (USO) or to declare a 'declaration deferral period'. The Minister must make this declaration within a 24-month period after the commencement of sections 8J and 8K of the Act. Additionally, the Minister must consider various criteria in making this determination, including the ongoing validity of the Telstra Agreement and Telstra's compliance record. The Act also mandates that the Minister must consult with the Australian Communications and Media Authority (ACMA) during the decision-making process. In terms of offences, penalties, or civil/criminal consequences for breach, the Declaration itself does not explicitly outline specific penalties for non-compliance. However, non-compliance with the Telecommunications (Consumer Protection and Service Standards) Act 1999 may result in civil or criminal penalties, depending on the nature and severity of the breach. Under the Act, breaches can attract penalties such as fines, and in some cases, imprisonment for individuals who are found guilty of serious offences. The exact penalties depend on the specific provision of the Act that is breached and are outlined in the relevant sections of the Act.

Legal classification tags

Area of Law
Telecommunications Law
Instrument
Declaration
Concepts
Commencement Provisions
Regulatory Standards
Prohibited Conduct

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.