Commonwealth of Australia

Telecommunications (Consumer Protection and Service Standards) Act 1999

Australian Communications Authority (Advice about Universal Service Subsidies) Direction (No. 2) 2001

I, RICHARD KENNETH ROBERT ALSTON, Minister for Communications, Information Technology and the Arts, make the following Direction under subsection 16A(1) of the Telecommunications (Consumer Protection and Service Standards) Act 1999.

Dated 24 September 2001.

Minister for Communications, Information Technology and the Arts

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1 Name of Direction

This Direction is the Australian Communications Authority (Advice about Universal Service Subsidies) Direction (No. 2) 2001.

2 Definitions

In this Direction:

ACA means the Australian Communications Authority.

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

Extended Zones universal service area means the universal service area notified as the universal service area of the Extended Zones 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.

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

relevant claim period means:

(a) the 2001-2002 financial year; and

(b) the 2002-2003 financial year; and

standard area means that part of Australia which is not the Extended Zones universal service area or a universal service area under the Universal Service Areas Determination (No.1) 2001 or the Universal Service Areas Determination (No.1) 2001 (Amendment No.1 of 2001).

universal service area has the same meaning as in section 9G of the Act.

USO means universal service obligation.

USO contestability pilot area means an area specified as a pilot area in the Pilot Areas Determination (No.1) 2001 made by the Minister on 11 April 2001 and published in the Commonwealth of Australia Gazette on 26 April 2001.

3 Direction

(1) As an adjunct to its re-estimation of its USO subsidy estimates for the standard area for 2001‑02 and 2002‑03 under the Australian Communications Authority (Advice about Universal Service Subsidies) Direction (No. 1) 2001, the ACA must provide advice to the Minister on an estimate using a process that it considers reasonable and other than that specified in that Direction, of the level at which to set USO subsidies for the relevant claim periods in respect of the service obligations referred to in paragraphs 9(1)(a) and (b) of the Act for:

(a) each USO contestability pilot area (ie. an aggregate of the subsidies for each universal service area constituting each the pilot area);

(b) the Extended Zones universal service area; and

(2) For the purposes of subclause (1) the ACA does not need to provide advice in relation to universal service areas and relevant claim periods in relation to which universal subsidies have already been determined under section 16 of the Act.

(3) In relation to the subsidies to apply in the Extended Zones universal service area the ACA’s advice should be consistent with its previous advice in relation to these subsidies.

(4) The ACA’s advice under subclause (1) should provide details of:

(a) the basis for the ACA’s recommended USO subsidy levels; and

(b) the reasons why the ACA considers these to be reasonable.

(5) Unless otherwise agreed in writing by the Minister, the ACA is also to provide advice on lump sum subsidy levels and per service subsidy levels for the individual service areas constituting the USO contestability pilot areas for the 2003-2004 financial year.

(6) The ACA’s advice under subclause (1) is to be provided as soon as practicable but in any event no later than Wednesday 26 September 2001.

(7) Unless otherwise agreed in writing by the Minister, the ACA’s advice under subclause (5) is to be provided as soon as practicable but in any event no later than Monday 1 October 2001.