Explanatory Statement
Telecommunications Universal Service Obligation (Eligible Revenue) Amendment Determination 2005 (No 1)
Issued by the Australian Communications Authority under subsection 20B (1) of the Telecommunications (Consumer Protection and Service Standards) Act 1999.
Section 20B of the Telecommunications (Consumer Protection and Service Standards) Act 1999 (the Act) provides that the Australian Communications Authority (ACA) may make a determination which sets out the requirements for calculating a participating person’s eligible revenue.
The purpose of the Telecommunications Universal Service Obligation (Eligible Revenue) Amendment Determination 2005 (No 1) (the amending Determination) is to amend the Telecommunications Universal Service Obligation (Eligible Revenue) Determination 2003 (the Determination). The Determination sets set out what is to be taken to be eligible revenue.
In summary, the amending Determination maintains all the provisions of the Determination but:
- expands the deduction concerning infrastructure to include maintenance revenue; and
- makes administrative changes to ensure the amendment applies to the period beginning 1 July 2004 and subsequent periods.
The amending Determination applies to the eligible revenue period commencing 1 July 2004.
CONSULTATION
The ACA released a discussion paper on the 28 January of 2005 seeking comment on the appropriateness of section 28 of the Determination with particular reference to:
- the scope of the deduction for revenue earned from network construction and installation activities as specified in the Determination, and
- whether to expand the deduction to allow for the deduction of revenues earned from maintaining telecommunications network infrastructure.
The closing date for submissions was 11 February 2005. The ACA received six responses to this discussion paper. Only one response opposed the proposal.
The ACA sent the proposed amending Determination to all carriers for comment on 26 May 2005. The closing date for submissions was 8 June 2005. The ACA received two responses in regards to the proposed amending Determination. Neither opposed the amendment.
The ACA also consulted with the Office of Regulation Review (ORR) and received advice that as this amendment is of a minor nature only and does not substantially alter existing arrangements a regulation impact statement was not required.
NOTES ON THE DETERMINATION
Section 1 - Name of Determination
Section 1 provides that the name of the amending Determination is the Telecommunications Universal Service Obligation (Eligible Revenue) Amendment Determination 2005 (No 1).
Section 2 - Commencement
Section 2 provides that the Determination commences on the day after it is registered.
Section 3 – Amendment of Telecommunications Universal Service Obligation (Eligible Revenue) Determination 2003
Section 3 provides that the amending Determination amends the Determination as detailed in Schedule 1.
Schedule 1 Amendments
Amendment [1] Application
Amendment [1] provides that the Determination in place prior to the commencement of the amending Determination applies to the eligible revenue period beginning 1 July 2003.
Amendment [2] Application
Amendment [2] provides that the amending Determination applies to the eligible revenue period beginning on 1 July 2004, and subsequent eligible revenue periods.
Amendment [3]
Section 28 of the Determination refers to deductions from gross telecommunications sales revenue concerning infrastructure revenue.
Section 28 of the Determination provides a deduction for revenue earned from the construction or installation of the infrastructure of a telecommunications network on the network side of the boundary of the telecommunications network, or the management of the construction or installation of the infrastructure of a telecommunications network on the network side of the boundary of the telecommunications network.
Amendment [3] provides for the deductions in the Determination and also allows for the deduction of revenue earned from the maintenance of the infrastructure of a telecommunications network on the network side of the boundary of the telecommunications network, and the management of the maintenance of the infrastructure of a telecommunications network on the network side of the boundary of the telecommunications network. For example revenue earned from the maintenance of tele-power equipment (batteries and rectifiers) of a telecommunications network would be deductible in the Determination.