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Proposed Annual Carrier Licence Charge 2018–19
| Draft Cost Recovery Implementation Statement: Annual Carrier Licence Charge for the charging period 1 July 2018 to 30 June 2019
The Australian Communications and Media Authority (ACMA) is Australia’s regulator for broadcasting, radiocommunications, telecommunications and some online content. As an Australian Government agency, the ACMA is required to define and implement, where feasible, charges for recovering the costs of its products and services, in accordance with the Australian Government Charging Framework (the Charging Framework).
The Charging Framework provides the overarching framework for government entities to plan, implement and review their charging activities. As part of the Charging Framework, agencies that undertake cost-recovery activities are required to periodically review the charges they have imposed.
The Telecommunications (Carrier Licence Charges) Act 1997 (the Act) imposes an annual carrier licence charge (ACLC) on each eligible carrier licence that is in force at the beginning of a financial year. In accordance with the Act, the ACLC is calculated annually to recover an amount determined by reference to certain telecommunications costs incurred by the ACMA, the Australian Competition and Consumer Commission (ACCC) and the Department of Communications and the Arts (DoCA) from carriers.
The ACMA is required to prepare a Cost Recovery Implementation Statement (CRIS) in accordance with the Australian Government Cost Recovery Guidelines (the Guidelines) for the implementation of the proposed ACLC each year. As required by the Guidelines, the ACMA must consult with industry stakeholders on the CRIS before imposing the charges.
Accordingly, a draft CRIS for the ACMA’s ACLC is available from the downloads table on this page. The draft CRIS incorporates all the relevant details of the proposed charges, describes the methodology used for the calculation of the proposed ACLC and provides explanations for variances from the previous financial year.
The draft CRIS includes a separate document—the Cost Recovery Implementation Statement (at Attachment B)—which explains the approach the ACMA proposes to implement cost-recovery arrangements for the Measuring Broadband Australia (MBA) program on behalf of the ACCC. The MBA program monitors National Broadband Network (NBN) fixed-line services provided by carriers and carriage service providers with significant market presence. The ACCC is responsible for administering the program, which commenced on 1 July 2017. The cost of the program is to be recovered in arrears via the ACLC as part of the cost component under paragraph 15(1)(b) of the Act, over a four-year period commencing in 2018–19.
To give effect to the proposed ACLC, a number of written determinations have been or are proposed to be made by the ACMA, the ACCC and DoCA under sections 14 and 15 of the Act. These determinations are discussed in this consultation paper and in the draft CRIS.
Issues for comment
The ACMA welcomes comments from stakeholders on the proposed ACLC, the draft CRIS and any other issues relevant to the proposed charges.