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Telecommunications Licensing

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Peter Skeen

Assistant Manager

Telecommunications Licensing and Numbering

International Training Program - Melbourne

Friday 8th September 2006

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Number of carriers

- ACMA has issued 213 carrier licences since 1997.

- A carrier can surrender their licence.

- There are currently 157 active carrier licences.

- During 2005/06, 35 carrier licences were granted.

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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

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‘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)

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‘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

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‘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)

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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.

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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

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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.

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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

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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.

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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.

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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.

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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

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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

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Annual Carrier Licence Charges - 2005/06

• 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.

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Number of carrier licencesTrends in Carrier Licensing

0

20

40

60

80

100

120

140

160

180

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

Financial Year

No

of

ca

rrie

r li

ce

nc

es

Issued

Surrendered

Active

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Number of NCDs

5 710

7 611 10

17

11

1 37

375

12

22

2831

4245

5963

0

10

20

30

40

50

60

70

19

97

-98

19

98

-99

19

99

-00

20

00

-01

20

01

-02

20

02

-03

20

03

-04

20

04

-05

20

05

-06

Financial Year

No

of

NC

Ds

Issued

Revoked

Active

Number of Nominated Carrier Declarations