Commonwealth of Australia
Telecommunications (Consumer Protection and Service Standards) Act 1999
Universal Service Subsidies (2004-05 Default Area) Determination (No. 1) 2002
I, RICHARD KENNETH ROBERT ALSTON, Minister for Communications, Information Technology and the Arts, make the following Determination under subsection 16(1) of the Telecommunications (Consumer Protection and Service Standards) Act 1999.
Dated 27 August 2002.
RICHARD ALSTON
Minister for Communications, Information Technology and the Arts
_________________________________________________________________
1 Name of Determination
This Determination is the Universal Service Subsidies (2004-05 Default Area) Determination (No. 1) 2002.
2 Commencement
This Determination commences on gazettal.
3 Definitions
In this Determination:
Act means the Telecommunications (Consumer Protection and Service Standards) Act 1999.
claim period means the 2004-2005 financial year.
default area means the area for which the Minister is taken to have made a determination as a result of subsection 9G(3) of the Act.
relevant service obligations means:
(a) the obligation referred to in paragraph 9(1)(a) of the Act (dealing with the standard telephone service); and
(b) the obligation referred to in paragraph 9(1)(b) of the Act (dealing with payphones).
standard telephone service includes an alternative telecommunications service (ATS) which is supplied in accordance with an approved ATS marketing plan in fulfilment of the obligation under paragraph 9(1)(a) of the Act.
4 Universal service subsidies
For the purposes of section 16 of the Act, the amount of the universal service subsidies specified in the Schedule is determined for the default area in respect of the relevant service obligations for the claim period.
Note: Subsection 9G(3) of the Act provides that if at a particular time any areas of Australia are not within a universal service area, covered by a determination under subsection 9G(1), in respect of a service obligation, those areas together constitute at that time a single universal service area in respect of that service obligation and the Minister is taken to have made a determination under subsection 9G(1) to that effect.
5 Circumstances in which subsidies are payable
A universal service provider for the claim period is eligible to be paid the subsidies specified in the Schedule if the provider complies with the provider’s obligations under section 12C of the Act.
Schedule – Universal service subsidies
- The subsidy in respect of the supply of the standard telephone service for the 2004-2005 financial year is $155,852,935.
2. The subsidy in respect of the supply, installation and maintenance of payphones for the 2004-2005 financial year is $10,890,856.
Overview
The Telecommunications (Consumer Protection and Service Standards) Act 1999 was enacted to protect consumers and ensure that certain telecommunications services meet specific standards. This Act addresses the problem of ensuring that Australians, particularly those in remote or less accessible areas, have access to essential telecommunications services. The Universal Service Subsidies (2004-05 Default Area) Determination (No. 1) 2002 was made by the Minister for Communications, Information Technology and the Arts under subsection 16(1) of the Act, with the policy objective of providing subsidies to ensure the continued provision of standard telephone services and payphones in areas not covered by a specific determination. The Determination sets out the amount of universal service subsidies for the 2004-2005 financial year for these services, aiming to maintain the availability of critical telecommunications infrastructure in default areas.
Scope and Application
The Universal Service Subsidies (2004-05 Default Area) Determination (No. 1) 2002, made under the Telecommunications (Consumer Protection and Service Standards) Act 1999, applies to the default area in Australia for the 2004-2005 financial year. It specifies the amount of universal service subsidies that are to be paid to universal service providers who comply with their obligations under section 12C of the Act, specifically relating to the standard telephone service and the supply, installation, and maintenance of payphones. This Determination ensures that certain telecommunications services are provided in areas that might otherwise lack adequate service, by financially supporting those who provide these services in designated default areas. The geographic reach of this Determination is national, extending to all areas of Australia that are not covered by a specific universal service area determination as per subsection 9G(1) of the Act. The Determination does not explicitly exclude any particular persons, entities, industries, or transactions, but its application is contingent upon compliance with the Act's specified obligations. The application and specifics of the subsidies are detailed in the attached Schedule.
Key Provisions
The main operative sections of the Universal Service Subsidies (2004-05 Default Area) Determination (No. 1) 2002, under the Telecommunications (Consumer Protection and Service Standards) Act 1999, are the definitions and the determination of subsidies (sections 3 and 4). The determination sets out the definitions relevant to the legislation, such as 'default area' and'relevant service obligations', which include obligations regarding the standard telephone service and payphones. Section 4 specifies that the amount of the universal service subsidies for the default area in respect of the relevant service obligations for the 2004-2005 financial year is determined. It also notes that if any areas of Australia are not covered by a determination for a service obligation, they constitute a single universal service area, and the Minister is deemed to have made a determination to that effect (subsection 9G(3) of the Act).
The obligations imposed by this Determination on the parties or entities it governs are primarily concerned with compliance with the provider's obligations under section 12C of the Act to be eligible for the universal service subsidies. The Determination specifies that universal service providers must adhere to the requirements outlined in the Act to receive the subsidies for the supply of the standard telephone service and the supply, installation, and maintenance of payphones. The providers must ensure that their services meet the standards set out in the Act and any associated marketing plans for alternative telecommunications services.
Breaches of the obligations set out in the Determination may lead to civil or criminal consequences. While the Determination does not explicitly state the penalties for non-compliance, under the Telecommunications (Consumer Protection and Service Standards) Act 1999, failure to comply with the Act's provisions can result in significant fines. For example, corporations can be fined up to $210,000 for each offence under the Act. Additionally, individuals can face penalties of up to $5,250 for each offence. These penalties reflect the seriousness of non-compliance with consumer protection and service standards in the telecommunications sector.