ACMA media release 27/2007 - 26 March

26 March 2007

ACMA calls for comment on Do Not Call Register access fee options

The Australian Communications and Media Authority has released a discussion paper on the fees telemarketers will be charged to access the Do Not Call Register.

This is another important step in the development of the register which is due to commence in May 2007.

Industry is invited to comment on two possible access fee pricing options – both based on an annual subscription fee and excess usage charge model.

The two access fee pricing options are:

• Option 1 – aims to recoup the full identified cost over four years. Industry costs will be the same in each year.
• Option 2 – aims to build up to full cost recovery arrangements over the four years and recoup part of the identified cost. Industry costs will gradually increase each year.

Under each option there is a subscription type that allows telemarketers to check up to 500 numbers per year at no cost.

In 2006, the government provided funding of $33.1 million over four years to establish the Do Not Call Register. The government also announced that approximately $15.9 million would be recovered from telemarketers over the same period.

ACMA has now proposed that due to lower than expected costs for the establishment of the Register, the maximum identified costs to be recovered from industry are $11.4 million over four years.

Under the scheme, telemarketers may submit their telephone number lists to the Register Operator for checking against the Register. This process of ‘washing’ calling lists will help telemarketers avoid breaching the Act.

ACMA engaged Access Economics to assist in developing an appropriate access fee pricing model.

A copy of the discussion paper can be found at www.acma.gov.au/donotcall or by calling (03) 9963 6895.

Written responses to the draft discussion paper are due no later than Thursday 5 April 2007.

Regular updates on the implementation of the Do Not Call Register scheme can be found at www.acma.gov.au/donotcall

Media contact: Donald Robertson, ACMA Media Manager, on (02) 9334 7980.

Backgrounder

Legislation to establish the Do Not Call Register scheme received Royal Assent on 30 June 2006. The Australian Government introduced the legislation in response to the increasing level of community concern about the growth in unsolicited telemarketing calls.

The government announced funding of $33.1 million over four years for developing and implementing the Do Not Call Register, of which approximately $15.9 million was anticipated to be recovered through fees to access the register. Full cost recovery of the register’s operating costs is intended to occur from February 2011.

Under the Do Not Call Register legislation, ACMA is responsible for establishing and overseeing the operation of the Register. In February 2007, ACMA contracted Service Stream Solutions Pty Ltd to build and operate the register until February 2011.

It will generally be unlawful to make telemarketing calls to numbers placed on the Do Not Call Register. The Act allows persons (such as telemarketers) to submit their contact lists to the register operator for checking against the register. Upon submission of the list and payment of the appropriate access fee (if any), the register operator must inform the access seeker which of the numbers in their list (if any) are, or are not, on the register. This process of ‘washing’ contact lists will assist telemarketers to comply with the Act.

The two access fee pricing options ACMA is seeking comment on are:

Option 1 – Full identified cost / Annual subscription fees plus excess usage charges

^{Note 1 Estimated number of access seekers that will take-up the subscription type. Under this option, $11.4 million is expected to be recovered over the four years.}

Option 2 – Graduated partial identified cost / Annual subscription fees plus excess usage charges

^{Note 1 Estimated number of access seekers that will take-up the subscription type. The percentage of the identified costs to be recovered ($11.4 million spread equally over four years) each year is (30% Year 1, 50% Year 2, 67% Year 3 and 83% Year 4). Under this option $6.6 million is expected to be recovered over the four years.}

ACMA engaged Access Economics to assist in developing an appropriate access fee pricing model. Access Economics’ recommended pricing structure was an ‘Annual Subscription Fees and Excess Usage Charges’ model which has been likened to a ‘broadband’ type of pricing structure. Alternative fee structures considered included a single usage price per number washed.

Access Economics estimated a lower and upper range of 100 and 300 paying telemarketers each year.

ACMA is expecting to determine the fees for accessing the Do Not Call Register in April 2007.

Do Not Call Register

The Do Not Call Register will commence operation in May 2007. Once the Register is operating, it will be illegal, in the absence of consent, for any non-exempt telemarketer in Australia and overseas to contact a number listed on the register.

Certain public interest entities will still be allowed to make specific types of calls to numbers on the register. Government bodies, educational or religious organisations, registered political parties, independent members of parliament, electoral candidates and charities will all be entitled to these exemptions, as will market and social researchers when conducting opinion polling and standard questionnaire-based research calls. These calls will, however, be subject to the national standard.

ACMA will be responsible for overseeing the register’s operation and investigating breaches of the Do Not Call Register legislation.

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