1 Telecommunications Licensing 1 Peter Skeen Assistant Manager Telecommunications Licensing and Numbering International Training Program - Melbourne Friday 8th September 2006

2 Number of carriers - ACMA has issued 213 carrier licences since A carrier can surrender their licence. - There are currently 157 active carrier licences. - During 2005/06, 35 carrier licences were granted.

3 Carrier Licensing Open licensing regime. A carrier is the holder of a carrier licence. The owner of a network unit that is used to supply carriage services to the public must hold a carrier licence unless: – a nominated carrier declaration is in force in relation to the network unit; or – an exemption applies

4 ‘Network Units’ Line links connecting distinct places at least 500 metres apart (eg optical fibre, copper cable) Multiple links exceeding aggregate distance of 5 kilometres Designated Radiocommunications Links Base Station that is part of a Public Mobile Telecommunications Service Base Station that is part of a Terrestrial Radiocommunications Customer Access Network eg Wireless LAN for Internet Fixed Radiocommunications Link (eg microwave link) Satellite-based Facilities (ie transponder) (Note: switching systems, internet servers and databases are not network units)

5 ‘Carriage Service’ Carriage service means a service for carrying communications by means of guided and/or unguided electromagnetic energy. eg standard telephone service, VoIP, data service, internet service, GSM, CDMA

6 ‘Supply to the public’: Immediate circle Fundamental to carrier and service provider concepts Used to determine if a person is supplying services to the public – that is, outside the person’s immediate circle A person’s immediate circle is defined by reference to who they are (eg. corporation, private individual or government authority)

7 Carriage Service Providers (CSPs) A person who supplies a carriage service to the public using a network unit is a carriage service provider. Over 1200 CSPs in Australia. Majority of CSPs do not own network units and do not require a carrier licence. CSPs purchase capacity from carriers. Carriers will normally be CSPs.

8 Who must hold a carrier licence? Owners of network units are prohibited from allowing those units to be used to supply carriage services to the public without: – holding a carrier licence, or – a nominated carrier declaration being in force

9 Who may hold a carrier licence? Any constitutional corporation, partnership involving constitutional corporations and public bodies may apply to be licensed as a carrier. ACMA may refuse to grant licences to disqualified persons.

10 Carrier Licensing: Exemptions Existing exemptions for: – defence, intelligence organisations – transport authorities, electricity supply bodies – broadcasters (on more limited grounds) – under previous laws Exemptions allow purpose-based use and sale of remaining capacity to carriers or other exempt users

11 Carrier Licensing: Benefits Right to own facilities that are used to provide public services. Facilities access rights eg land, telecom towers, buildings. Powers and immunities (planning laws) eg GSM towers.

12 Key Carrier Licensing Processes Carrier licence application is circulated within ACMA for comment ie Legal, Standards, Radiocommunications, Broadcasting and Finance. ACMA must consult with the Agency Co-ordinator (Attorney-General’s Department) before granting a carrier licence. National interests, interception and law enforcement issues are considered by the Agency Co-ordinator. ACMA generally has 20 business days to grant carrier licence after application is sent to Agency Co-ordinator. Agency Co-ordinator can request more time to consider application. New carriers must submit an Interception Capability Plan to the Agency Co-ordinator and ACMA within 90 days of the carrier licence being granted.

13 Nominated Carrier Declaration Carriers may apply to be a nominated carrier in relation to a particular network unit – accepting carrier related responsibilities – removing the requirement for the unit’s owner to be licensed. Initially intended to deal with legal ownership by financiers arising out of financing arrangements.

14 Trial Certificates Allows networks units owned by a non-carrier to be used to supply carriage services to the public for a set period. Maximum period of trial is 6 months Further extensions of 6 months permitted

15 Licence Charges Application Charge $2,200 Annual Carrier Licence Charge Fixed minimum amount $341 (2005/06) Variable component depending on share of industry revenue. 2005/06 - range $0 to over $22,000,000

16 Annual Carrier Licence Charges /06 Based on recovery of ACMA, ACCC, DCITA and ITU costs related to administration of telecommunications. (2005/06 - $33,373,560) Eligible Industry Revenue - $24,091,883,862 (2004/05) Total annual charges about 1.2% of eligible telecommunications revenue. Includes ACLC,USO and NRS levies. Eligible telecommunications revenue allows deductions of payments made to other carriers. If already an ISP have to include ISP revenue in annual return.

17 Number of carrier licences

18 Number of Nominated Carrier Declarations