Commonwealth of Australia

Telecommunications (Consumer Protection and Service Standards) Act 1999

Universal Service Subsidies (2005-06, 2006-07, 2007-08 Contestable Areas) Determination (No. 1) 2005

I, HELEN LLOYD COONAN, 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 21 June 2005.

HELEN COONAN

Minister for Communications, Information Technology and the Arts

_________________________________________________________________

1               Name of Determination

This Determination is the Universal Service Subsidies (2005-06, 2006-07,

2007-08 Contestable Areas) Determination (No. 1) 2005.

2               Commencement

This Determination commences on the day after it is registered on the Federal Register of Legislative Instruments.

3      Interpretation

(1)    In this Determination:

Act means the Telecommunications (Consumer Protection and Service Standards) Act 1999.

claim period means:

(a)     the 2005-2006 financial year; and

(b)     the 2006-2007 financial year; and

(c)     the 2007-2008 financial year.

contestable area means an area determined under the Universal Service Areas Determination (No. 1) 2001 for which the obligation referred to in paragraph 9(1)(a) of the Act (dealing with the standard telephone service) has been made contestable under the Contestable Service Obligation Determination (No. 1) 2001.

Minister means the Minister for Communications, Information Technology and the Arts.

relevant service obligation means the obligation referred to in paragraph 9(1)(a) of the Act (dealing with the standard telephone service).

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.

universal service area means an area determined under the Universal Service Areas Determination (No. 1) 2001.

(2)    When section 6 of the Australian Communications and Media Authority Act 2005 commences, this Determination has effect as if each reference in the Determination to the ACA were a reference to the ACMA.

Note:  Section 6 of the Australian Communications and Media Authority Act 2005 (the ACMA Act) provides for the establishment of the Australian Communications and Media Authority (ACMA) as a result of the merger of the Australian Broadcasting Authority (ABA) and the Australian Communications Authority (ACA).  Section 6 of the ACMA Act will commence on proclamation, or 1 July 2005 if no proclamation has been made by that date.

4      Universal service subsidies

Subject to clause 5, for the purposes of section 16 of the Act a universal service provider’s universal service subsidy for the contestable area in respect of the relevant service obligation for a claim period is the lump sum subsidy specified in the Schedule for the relevant universal service area for the claim period.      

5     Circumstances in which a universal service provider is eligible to be paid a subsidy

General conditions for payment of subsidies

(a)     A universal service provider for a claim period is eligible to be paid the subsidies specified in the Schedule if:

(i)     the universal service provider was the end-user’s prime service deliverer (as defined in paragraph (b)) for the claim period; and

(ii)    the provider complies with the provider’s obligations under section 12C or 13D of the Act, whichever is applicable; and

(iii)   the universal service provider has supplied the standard telephone service continuously to the end-user for a period of not less than 90 calendar days, unless there are no competing universal service providers in the relevant universal service area in respect of the relevant service obligation for the claim period, in which case this subparagraph does not apply.

(b)     For the purposes of paragraph (a), prime service deliverer means the universal service provider that supplies the retail standard telephone service to the end-user.

Number of services per place for which subsidy is payable

(c)     Subject to paragraph (d), within each of the contestable areas a universal service provider for the claim period is eligible to be paid the subsidies specified in the Schedule only in relation to:

(i)     one standard telephone service that the provider supplies to a place of residence of an end-user as the end-user’s universal service provider; or

(ii)    one standard telephone service that the provider supplies to a place of business of an end-user as the end-user’s universal service provider;

          except where a place of residence and a place of business are co-located, in which case the provider is eligible to be paid subsidy for one standard telephone service supplied to the place as a place of residence and for one such service supplied to the place as a place of business.

(d)     A subsidy is only payable in relation to a standard telephone service supplied to a place of business that is co-located with a place of residence if the universal service provider can, upon request of the ACA and to the satisfaction of the ACA, verify that the provider had reasonable grounds for believing the business to which it supplied the service was a bona fide business.

(e)         For the purpose of paragraph (c), the end-user’s universal service provider means:

(i)          if the provider is the only person providing a standard telephone service to the end-user—that provider; or

(ii)        if the provider is one of two or more persons that are universal service providers and that are supplying a standard telephone service to the end-user—the provider that the end-user nominates, in a manner acceptable to the ACA, to both providers as the end-user’s universal service provider.

Other circumstances in which subsidy may be payable

(f)          Subject to paragraph (g), the ACA may determine in writing other circumstances in which a subsidy specified in the Schedule is payable to a universal service provider for a contestable area in respect of the relevant service obligation for a claim period.

Note:  An example of the circumstances in which the ACA may exercise this discretion includes, but is not limited to, where the second or subsequent service is supplied to the end-user solely or principally for use by the end-user for the purpose of connecting to a recognised distance education service for primary or secondary education.

(g)     Before making a determination under paragraph (f) the ACA must consult with the Minister. 

Universal service provider to satisfy ACA on the provider’s entitlement to subsidy

(h)     A universal service provider claiming a subsidy in relation to a circumstance described in clause 5 must upon request by the ACA establish to the satisfaction of the ACA that the service has been supplied in the circumstances described in clause 5.

Schedule – Universal service subsidies

(a)                                 Universal service areas in north-east New South Wales

                     and inland south-east Queensland

(b)              Universal service areas in central-west and south-west Victoria

(c)              Universal service areas in central-west Victoria and

                   south-east South Australia

The following census collection districts have the same meaning as in the Universal Service Areas Determination (No. 1) 2001.

1        S_1

2               S_3

3               Other non-urban