25 June 2008
New fees for telemarketers to access Do Not Call Register
The Australian Communications and Media Authority has determined the fees telemarketers will be charged to access the Do Not Call Register from 1 July 2008.
The new fees scale reflects the Australian Government’s election commitment and recent Federal Budget measure requiring industry to fully fund the direct costs in operating the register from 1 July 2008.
Before determining the new fees, ACMA consulted with industry on the new fee arrangements and whether to spread return of over-recovered funds of $0.88 million across the next three financial years, or return them in one year, 2008-09.
This over-recovery is largely due to the demand for list-washing services being underestimated in initial subscription fee modelling. Consistent with the Australian Government Cost Recovery Guidelines, any over-recovered funds are required to be returned to industry.
Overall, industry favoured spreading return of the over-recovered funds across the next three financial years as this would assist in minimising price fluctuations and deliver a relatively stable scale of fees over the initial four-year register contract period.
The new fees scale entails only a slight increase in annual subscription fees for accessing the Do Not Call Register in 2008-09 relative to 2007-08.
As provided for under the Do Not Call Register Act 2006, telemarketers can submit their calling lists to the Register Operator for checking against the register. This process of ‘washing’ calling lists assists telemarketers to comply with the Act by avoiding registered numbers. To date, industry has submitted more than 1 billion telephone numbers for washing against the register.
Since its launch one year ago, Australians have listed more than 2.4 million telephone numbers on the Do Not Call Register.
More information on the Do Not Call Register is on the register website: www.donotcall.gov.au
Media contact: Donald Robertson, ACMA Media Manager, on (02) 9334 7980.
Backgrounder
The Do Not Call Register, which is overseen by the Australian Communications and Media Authority, was established in May 2007 under the Do Not Call Register Act 2006. Under the Act, it is illegal, in the absence of consent, for most kinds of telemarketing calls to be made to telephone numbers listed on the register.
On 1 February 2007, ACMA contracted Service Stream Solutions Pty Ltd to build and operate the register until February 2011, with an option for an additional three years.
The register allows individuals to ‘opt out’ of receiving a wide range of unsolicited telemarketing calls. Registrations are valid for three years, and can be withdrawn at any time. Individuals can register their personal home or mobile telephone numbers for free by completing a short form online at www.donotcall.gov.au, calling 1300 792 958 or filling out a postal form.
To avoid possible penalties for calling listed telephone numbers, telemarketers are able to check, or ‘wash’ their calling lists against the numbers listed on the register. In general, a telemarketer who submitted a list for washing can rely on the washed list they receive for 30 days.
ACMA’s experience is that the level of industry demand for list washing services is contributing to the successful operation of the Do Not Call Register. To date, the telemarketing industry had submitted more than 1 billion telephone numbers for washing against the register.
As part of its ‘Savings for Labor’s Better Priorities – Do Not Call Register’ election commitment and a recent Federal Budget measure, the Government required industry to fully fund the direct costs of the register from 1 July 2008.
On 19 May 2008, ACMA released a discussion paper – Options for New Fees for Accessing the Do Not Call Register. Interested parties were invited to comment on two options for the new fees that telemarketers would be charged to access the register from 1 July 2008:
Option 1 – Stable pricing regime. Under this option, the over-recovered funds from the first year of operation would be returned to industry evenly over the next three financial years.
Option 2 – Fluctuating pricing regime. Under this option, the over-recovered funds from the first year of operation would be returned to industry in one year, 2008-09.
Thirteen submissions on the proposed fee options were received from interested parties. Overall, there was industry support for option 1.
As it did before the first year of operation, ACMA engaged independent consultancy Access Economics to assist in determining the new fees.
On 24 June 2008, ACMA amended the determination about the fees payable by industry for accessing the register. A small number of other minor amendments clarifying existing practices were also made. The Do Not Call Register (Access Fees) Amendment Determination 2008 (No.1) commences on 1 July 2008. A copy of the determination is available at www.comlaw.gov.au.
The following table compares the current access fees with the new access fees for 2008-09. The move to full direct cost recovery from 1 July 2008 will result in a slight increase (average of 5.4 per cent) in the annual subscription fees. The excess usage charge remains unchanged.
Table 1.1 Summary of current and new charging arrangements
|
Subscription type |
Annual quantity of |
Annual subscription fee |
Excess usage charge |
|
|---|---|---|---|---|
|
Current |
Fees for 2008-09 |
|||
|
A |
<500 |
$0 |
$0 |
$0.004 |
|
B |
20,000 |
$71 |
$74 |
$0.004 |
|
C |
100,000 |
$320 |
$340 |
$0.004 |
|
D |
1,000,000 |
$2,800 |
$3,000 |
$0.004 |
|
E |
10,000,000 |
$24,000 |
$25,200 |
$0.004 |
|
F |
20,000,000 |
$40,000 |
$42,000 |
$0.004 |
|
G |
50,000,000 |
$60,000 |
$63,000 |
$0.004 |
|
H |
100,000,000 |
$80,000 |
$84,000 |
$0.004 |
