Universal Service Subsidies (2001-02, 2002-03, 2003-04 Extended Zones) Determination (No. 1) 2001

Overview

The Universal Service Subsidies (2001-02, 2002-03, 2003-04 Extended Zones) Determination (No. 1) 2001 was enacted to address the need for financial assistance to telecommunications providers delivering services in the Extended Zones of Australia, areas that are typically more remote and less accessible. This legislation, made under the authority of the Telecommunications (Consumer Protection and Service Standards) Act 1999, was introduced to ensure that these providers could continue to offer essential services such as standard telephone services and payphones despite the additional challenges and costs associated with operating in these zones. The policy objective is to maintain a consistent level of telecommunications service across all regions of Australia, thereby supporting connectivity and communication for all Australians, regardless of their location.

Scope and Application

The Universal Service Subsidies (2001-02, 2002-03, 2003-04 Extended Zones) Determination (No. 1) 2001 applies to the Extended Zones universal service area as specified in the Notice of the Primary Universal Service Provider for the Extended Zones of Australia published in the Commonwealth of Australia Gazette of 25 July 2001. This Determination is made under subsection 16(1) of the Telecommunications (Consumer Protection and Service Standards) Act 1999, and it concerns the amounts of the universal service subsidies for the specified claim periods in relation to the relevant service obligations, which include standard telephone services and payphones. The subsidies are payable to a universal service provider for the claim periods if the provider complies with their obligations under section 12C of the Act. This Determination applies nationally across Australia and is effective from the date of its gazettal, providing financial support for telecommunications services in remote or underserved areas.

Key Provisions

This determination, titled the Universal Service Subsidies (2001-02, 2002-03, 2003-04 Extended Zones) Determination (No. 1) 2001, provides the amounts of universal service subsidies for specific claim periods in the Extended Zones universal service area. These claim periods are the 2001-2002, 2002-2003, and 2003-2004 financial years. The determination is made under subsection 16(1) of the Telecommunications (Consumer Protection and Service Standards) Act 1999, and it specifies the subsidy amounts for these years in the Schedule, which are $35,015,000 for 2001-2002, $31,666,000 for 2002-2003, and $28,637,314 for 2003-2004. The determination also outlines that these subsidies are payable to a universal service provider if they meet the obligations under section 12C of the Act. These obligations include the provision of standard telephone services and payphones, as well as their installation and maintenance, as specified in the Act. The relevant service obligations pertain to standard telephone services and payphones, which are detailed in paragraphs 9(1)(a) and 9(1)(b) of the Act. The Act imposes obligations on the parties involved, particularly on universal service providers, to ensure they comply with their service obligations to be eligible for the subsidies. This includes the provision of standard telephone services and payphones, and the adherence to any related service standards. Failure to comply with these obligations could result in the provider not being eligible for the subsidies specified in the determination. In terms of consequences for breach, the Act may include civil or criminal penalties for non-compliance with the service obligations. While the specific penalties are not detailed in this determination, the Act generally provides for penalties that can include fines, which may be significant depending on the nature and severity of the breach. The maximum penalties could be substantial and are typically outlined in the relevant sections of the Act.