Telecommunications regulatory reform – separation framework

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In November 2010, the Telecommunications Legislation Amendment (Competition and Consumer Safeguards) Act 2010 (the Act) was passed by Parliament. The Act provides for the making of instruments to enhance competitive outcomes in the Australian telecommunications industry and strengthen consumer safeguards.

The Act inserted a new Part 33 into the Telecommunications Act 1997, which enables the Minister to make a number of instruments that provide the statutory framework for Telstra to voluntarily structurally separate with the objective of providing increased regulatory certainty to Telstra, other telecommunications providers and consumers.

The Act also enables the Minister to make a number of instruments to strengthen consumer safeguard measures such as the Universal Service Obligation (USO), the Customer Service Guarantee (CSG), priority assistance and payphones. More information on the consumer safeguard reforms is available at the Telecommunications regulatory reform—consumer safeguards page.

Separation framework

 

Telecommunications (Migration Plan Principles) Determination 2011

This instrument is made under subsection 577BB(1) and sets out the mandatory elements of a migration plan. The migration plan is a document that Telstra has lodged separately with the Australian Competition and Consumer Commission (ACCC) and deals with matters concerning the timing of, and procedures involved in, the migration from Telstra's fixed-line network to the NBN. Once a migration plan is approved by the ACCC, the provisions of that plan will be treated as provisions of Telstra's Structural Separation Undertaking (SSU). The instrument was published on this website on 24 June 2011.

Telecommunications (Migration Plan—Specified Matters) Instrument 2011

This instrument, made under subsections 577BC(3) and (4), specifies the matters that a migration plan may contain, in addition to the matters specified under the Telecommunications Act. This instrument also sets out matters that a migration plan must not contain. The instrument was published on this website on 24 June 2011.

Telecommunications (Structural Separation Undertaking—Networks and Services Exemption) Instrument 2011

This instrument is made under subsections 577A(20) and (21) and exempts certain networks and services from the scope of Telstra's SSU. The instrument was published on this website on 24 June 2011.

Telecommunications (Acceptance of Undertaking about Structural Separation—Matters) Instrument 2011

This instrument is made under subsection 577A(7) of the Telecommunications Act and sets out the matters that the ACCC must have regard to in deciding whether to accept Telstra's SSU. The instrument was published on this website on 24 June 2011.

Telecommunications (Regulated Services) Determination (No 1) 2011

The ACCC must not accept an SSU unless the ACCC is satisfied that the SSU contains appropriate and effective measures for transparency and equivalence in relation to the supply by Telstra of regulated services to Telstra's wholesale customers and Telstra's retail business units during the period that Telstra is migrating its customer services to the NBN. This Instrument, made under subclause 71(4) of Part 9 of Schedule 1 to the Telecommunications Act, extends the transparency and equivalence measures set out in the SSU to not only include services that are declared under Part XIC of the Competition and Consumer Act 2010, but to also include wholesale ADSL Layer 2 and Telstra exchange building access services. The instrument was published on this website on 24 June 2011.

Public comment was invited on drafts of these instruments. The exposure drafts and public submissions received in response to them are at:

Functional separation requirements determination—extension of period instruments

As it is the government's preferred outcome for Telstra to separate its structure, the Act gives priority to the structural separation process over the functional separation process. This is achieved by the Minister, under subclause 75(5B) of Part 9 of Schedule 1 to the Telecommunications Act, extending or further extending the period that is required to make the functional separation requirements determination. The extension, or the total of the extensions, cannot exceed 18 months. The Minister must cause a copy of an instrument made under subclause 75(5B) to be tabled in each House of Parliament.

The Minister has made the following extensions:

Telecommunications (Functional Separation Requirements Determination—Extension of Period) Instrument 2011

On 25 March 2011, the Minister made this instrument to extend the period within which a functional separation requirements determination must come into force to the period ending 30 June 2011. The instrument was tabled in the House of Representatives on 15 June 2011 and in the Senate on 16 June 2011.

Telecommunications (Functional Separation Requirements Determination—Further Extension of Period) Instrument 2011

On 24 June 2011, the Minister made this instrument to extend the period within which a functional separation requirements determination must come into force to the period ending 31 December 2011. The instrument was tabled in both the House of Representatives and in the Senate on 4 July 2011.

Telecommunications (Functional Separation Requirements Determination—Further Extension of Period) Instrument (No. 2) 2011

On 13 December 2011, the Minister made this instrument to extend the period within which a functional separation requirements determination must come into force to the period ending 31 March 2012.

For more information, please email separationframework@dbcde.gov.au

Telecommunications Legislation Amendment (Competition and Consumer Safeguards) Act 2010

Explanatory Memorandum

Second reading speech

This Act amends the Telecommunications Act 1997, the Telecommunications (Consumer Protection and Service Standards) Act 1999 and the Telecommunications (Carrier Licence Charges) Act 1997. Consolidated versions of these Acts are available below.

 
 
 
 
Document ID: 120018 | Last modified: 24 January 2012, 9:50am