Trade Practices Act 1974 - Class Exemption Determination No. 1 of 2002

Overview

The Class Exemption Determination No. 1 of 2002, made under the Trade Practices Act 1974, was enacted to address a gap in the standard access obligations imposed on carriers and carriage service providers in relation to the supply of Local Carriage Services (LCS) within specific Central Business District Areas. The Australian Competition and Consumer Commission was tasked with this determination under subsection 152AS(1) of the Act, with a view to streamlining regulatory requirements for entities other than Telstra in these areas. This determination exempts all carriers and carriage service providers, except Telstra, from the standard access obligations concerning LCS supply within the Central Business District Areas of Sydney, Melbourne, Brisbane, Adelaide, and Perth. The objective of this exemption is to potentially reduce the regulatory burden on non-Telstra entities while maintaining competitive and efficient service provision in these major urban centres.

Scope and Application

The Class Exemption Determination No. 1 of 2002 under the Trade Practices Act 1974 provides a class exemption from standard access obligations for certain carriers and carriage service providers, specifically excluding Telstra Corporation Limited. The Determination exempts these entities from the standard access obligations as they relate to the supply of Local Carriage Services (LCS) within the Central Business District Areas of Sydney, Melbourne, Brisbane, Adelaide, and Perth. This exemption applies to all carriers and carriage service providers except Telstra, which is specifically excluded from this exemption. The Determination, which comes into effect on the date it is notified in the Gazette, also incorporates definitions from the Trade Practices Act 1974, the Telecommunications Act 1997, and the relevant instrument declaring the service. The exemption extends to the geographic areas defined as Central Business District Areas for the purpose of ordering and provisioning procedures, as specified in the Telstra Ordering and Provisioning Manual.

Key Provisions

The Class Exemption Determination No. 1 of 2002 under the Trade Practices Act 1974 exempts certain carriers and carriage service providers from standard access obligations. Specifically, section 4 identifies the specified class of carrier as all carriers excluding Telstra, while section 5 identifies the specified class of carriage service provider as all carriage service providers excluding Telstra. Section 6 states that these specified classes are exempt from standard access obligations related to the supply of Local Carriage Service (LCS) within the Central Business District Areas of Sydney, Melbourne, Brisbane, Adelaide, and Perth. The obligations imposed by this determination are centred around the exemption from standard access obligations. Carriers and carriage service providers falling within the specified classes are not required to adhere to the standard access obligations concerning the provision of LCS in the designated central business districts. This exemption allows these entities to operate under different regulatory conditions compared to other carriers and service providers not included in the specified classes. In terms of consequences for breaches, the determination itself does not explicitly state penalties or offences. However, under the Trade Practices Act 1974, non-compliance with the Act's provisions could lead to various civil and criminal penalties. For instance, contravening the Act can result in significant fines for corporations, as stipulated in section 81 of the Act, which imposes a penalty of up to $1.1 million for corporations. Additionally, individuals responsible for breaches can face personal fines and imprisonment, depending on the severity and intent of the violation. Therefore, while the determination provides specific exemptions, any failure to comply with broader legislative obligations could still result in substantial legal repercussions.