Consultation paper
JULY 2014
Canberra
Red Building
Benjamin Offices
Chan Street
Belconnen ACT
PO Box 78
Belconnen ACT 2616
T +61 2 6219 5555
F +61 2 6219 5353 / Melbourne
Level 32
Melbourne Central Tower
360 Elizabeth Street Melbourne VIC
PO Box 13112
Law Courts
Melbourne VIC 8010
T +61 3 9963 6800
F +61 3 9963 6899 / Sydney
Level 5
The Bay Centre
65 Pirrama Road
Pyrmont NSW
PO Box Q500
Queen Victoria Building
NSW 1230
T +61 2 9334 7700
1800 226 667
F +61 2 9334 7799
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acma | 1
Contents (Continued)
Background
Issue and renewals of radiocommunications licences
Apparatus licences
Spectrum licences
Class licences
Transfer of radiocommunications licences
Scope of the proposed changes
Out of scope activities
Proposed changes
Changes to fees for issue and transfer of licences
Changes to renewal fees for licences
Other changes
Making a submission
Attachment A—draft proposed standard fees for the ACMA’s radiocommunications activities
acma | 1Background
The Australian Communications and Media Authority (the ACMA) is Australia’s regulator for broadcasting, the internet, radiocommunications and telecommunications.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 government’s cost recovery policy objectives.
The ACMA is in the process of introducing a new suite of engineering and licensing tools to replace itscurrent radiocommunications licence management system. This latest technology will automate a significant percentage of both the frequency assigning and licensing processes, which will improve the ACMA’s business processes and response times, and improve the overall customer experience.
The introduction of these tools will not themselves facilitate internet-based licence processing (e-licensing). However, the tools are being designed with a view to making e-licensing a possibility in the future. One of the important steps to enable an e-licensing environment is to have as many standardised aspects of the process as possible. One aspect that we are seeking to standardise is the fees regime.
Currently, many of the radiocommunications licence types do have standard fees, but there are a few (38 items) items that are charged at a variable rate. This variable rate considers the time taken to review an application, assign a frequency and allocate the licence.
Use of a variable rate will unnecessarily complicate the automation processes and it is proposed that the use of a variable rate be removed. As a result, it is proposed that the current Radiocommunications (Charges) Determination 2007[1] (Radiocommunications Determination) be amended to reflect standard fees for relevant licensing activities for apparatus and spectrum licences.
Issue and renewals of radiocommunications licences
The ACMA allocates or assigns access to radiofrequency spectrum through one of three types of licences:
apparatus licences
spectrum licences
class licences.
Apparatus licences
Apparatus licences are issued to authorise the operation of radiocommunications devices. The fees applicable to the activities involved in issuing or renewing apparatus licences are outlined in Parts 6, 7, 8 and 12 of Schedule 2 to the Radiocommunications Determination. As licence applicants receive a direct benefit from the right to use and/or supply services, these activities are appropriate to be subject to cost recovery arrangements. The types of serviceswhich may operate under the apparatus licensing regime include radiocommunications transmitters, mobile communications, amateur services, broadcasting services and land mobile services.
Spectrum licences
Spectrum licences are a tradeable, technology-flexible (that is, the licence is not normally limited to any particular technology, system or service) that provide spectrum access rights for a fixed term. Spectrum licences are generally auctioned, or may be allocated by tender or a pre-determined price. The ACMA recovers part of the cost of its spectrum management activities through specific cost recovery fees on the beneficiaries, as outlined in Part 11 of Schedule 2 to the Radiocommunications Determination.
Class licences
Class licences are essentially issued to authorise the operation of radiocommunications devices with low interference potential. Devices that are currently subject to class licensing in Australia include mobile phone handsets, cordless telephones and a range of other low-power devices, such as garage door openers and wireless identification tags.There are currently 13 class licences issued under the Radiocommunications Act1992. The ACMA’s class licensing arrangements provide permission for each operator of theequipment to operate the equipment without the need to obtain an individual licence. Accordingly, class licences are excluded from cost recovery arrangements.
Transfer of radiocommunications licences
Transfer of radiocommunications licences is listed in item 10.1 in Part 10 of Schedule 2 of the Radiocommunications Determination.
The fees are determined in accordance with the Australian Government’s Cost Recovery Framework ( The proposed standard fees are listed in Attachment A. This attachment only lists those fees that are subject to change. Comparison to current fees and references to the Radiocommunications Determination are also included in the list.The ACMA monitors the effectiveness and efficiency of its fees on an ongoing basis. It aims to standardise the fee structure to facilitate the automation of licensing processes so that the benefits could be passed on to customers.
This consultation invites industry and stakeholders to comment on the proposed amendments to the existing fee regime.
The ACMA also imposes charges on behalf of the government from industry participants through radiocommunications taxes. These charges are set by relevant legislation and are outside the scope of this proposal.
The legislative authority by which the ACMA recovers the costs of its functions is contained in section 60 of the Australian Communications and Media Authority Act 2005[2] and Radiocommunications Act 1992.[3]
Scope of the proposed changes
This review forms part of the mechanism by which the ACMA monitors the effectiveness and efficiency of its fees on an ongoing basis. It aims to standardise the fee structure to facilitate the future automation of licensing processes so that the benefits could be passed on to customers.
As a result of preparing for the introduction of the new suite of engineering and licensing tools, the ACMA has reviewed the existing fees for radiocommunications licensing services that particularly relate to the issue, renewal or transfer of apparatus and spectrum licences that were determined on a variable rates basis. The proposed changes essentially involve conversion of the pricing mechanism from a variable rate to a standard rate.
Out of scope activities
The following fees (also imposed on a cost recovery basis) are excluded from this review:
radiocommunications fees set on standard rates (Parts 1, 2, 4, and 13 of Schedule 2 to the Radiocommunications Determination)
fees for services not associated with licensing activities (Part 5 of Schedule 2 to the Radiocommunications Determination)
licensing fees for broadcasting services except high frequency broadcasting services (activity number 27), low power open narrowcasting services (LPONS) (activity number 62), and narrowband area service outside 70–960 MHz (activity number 3)
radiocommunications fees based on a variable rate for general services (Part 9 of Schedule 2 to the Radiocommunications Determination) are not subject to change as they are applied to unexpected or ad-hoc services where a standard fee has not yet been determined.
Proposed changes
The proposed changes are minor in nature with no change to compliance requirements. The proposed changes also include administrative changes in relation to the description of activities or processes. The methodology used in calculating the proposed fees is disclosed in Attachment A for each activity.
Changes to fees for issue and transfer of licences
In order to determine the proposed standard fee for issue and transfer of licences, the estimated time taken to perform each activity has been multiplied by the ACMA’s current hourly rate, which is $197.The ACMA’s hourly rate is based on the net cost of services incurred by the ACMA in executing its functions for the financial year 2010–11. This rate was established by taking the net cost of services and dividing this cost by the average staff hours spent by the line areas during the financial year 2010–11.
The following methodologies have been used to assess the time taken to process individual licence types as appropriate:
method A—if there were licences issued during the 2012–13 financial year, an average of the time taken to issue the particular licence type(this methodology was applied to 15 items in Attachment A)
method B—if there were no licences issued during 2012–13 financial year, the time taken to process similar licence types thathave a standard fee.
method C—if neither method A nor method B apply, as there are no similar licence types or previous issues, the time taken to process was estimated by the licensing staff based on a time and motion study methodology.
Customers may find that the charge for a licence is slightly higher or lower than it has been in the past, particularly for the licences that have been issued previously (where method A is applied).
Importantly, the introduction of a standard fee will provide customers with certainty about the fee for the issue of the particular licence type they apply for.
Changes to renewal fees for licences
It is proposed that the renewal fee (opposed to the issuing fee) for radiocommunications non-assigned licences included in Part 7 of Schedule 2 of the Radiocommunications Determination will be separated and included with the renewal fee for radiocommunications assigned licences in Part 8 of Schedule 2 of the Radiocommunications Determination.
The process involved in renewing non-assigned licences is similar to the process for renewing assigned licences, which is charged at $4 per licence. It is proposed that this change will reduce the cost of renewing a radiocommunications non-assigned licence to $4. The cost of issuing a radiocommunications non-assigned licence will remain the same in each case.
Other changes
The following additional changes are required to enable the application of standard rates for all radiocommunicationsactivities:
the description for transfer of radiocommunications licences (activity number 43) will be changed to include a group of licences per application
the inclusion of a standard fee for some broadcasting types of services, which are currently being charged at an hourly rate (that is, high frequency broadcasting services—activity number 27 and varying LPONS—activity number 62)
clarifying the charge for trading spectrum (activity number 56), which is currently captured under the activity for issuing a licence or issuing a reprint of a licence (activity number 54)
other minor changes in relation to the activity descriptions contained in Schedule 2 to the Radiocommunications Determination are specified in Attachment A
Sections 18 and 19 of the Radiocommunications Determination will be deleted as they are no longer applicable
the activity in relation to Land Mobile System 0–35MHz (activity number 8) will be deleted as it is no longer applicable.
The proposed fees are likely to be reviewed again once the new management tools are introduced and processes and timeframes become clearer. It is possible that fees may reduce further as less staff time is spent on assigning frequencies and allocating licences.
Making a submission
The ACMA invites feedback from industry stakeholders on the proposed radiocommunications fees as disclosed in Attachment A.
The responses to this discussion paper will be considered by the ACMA in determining its proposed fees.
Submissions should be directed:
By email:
By mail:The Manager
Cost Recovery Review
Australian Communications and Media Authority
PO Box Q500
Queen Victoria Building
NSW 1230
The ACMA would prefer submissions to be sent by email wherever possible.
The closing date for submissions is the close of business, Friday 29 August 2014.
All submissions must clearly identify:
the name of the party making the submission
the organisation or interest group represented by the submission (where relevant)
contact details including telephone number, facsimile number, postal address and email address (if available).
Please direct enquiries about this discussion paper to the ACMA on (02) 9334 7943.
Effective consultation
The ACMA is working to enhance the effectiveness of its stakeholder consultation processes, which are an important source of evidence for its regulatory development activities. To assist stakeholders in formulating submissions to its formal, written consultation processes, it has developed Effective consultation—a guide to making a submission. This guide provides information about the ACMA’s formal written public consultation processes and practical guidance on how to make a submission.
Publication of submissions
In general, the ACMA publishes all submissions it receives. The ACMA prefers to receive submissions that are not claimed to be confidential. However, the ACMA accepts that a submitter may sometimes wish to provide information in confidence. In these circumstances, submitters are asked to identify the material over which confidentiality is claimed and provide a written explanation for the claim.
The ACMA will consider each confidentiality claim on a case-by-case basis. If the ACMA accepts a claim, it will not publish the confidential information unless authorised or required by law to do so.
Release of submissions where authorised or required by law
Any submissions provided to the ACMA may be released under the Freedom of Information Act 1982 (unless an exemption applies) or shared with other Commonwealth Government agencies under Part 7A of the Australian Communications and Media Authority Act 2005. The ACMA may also be required to release submissions for other reasons including for the purpose of parliamentary processes or where otherwise required by law (for example, under a court subpoena). While the ACMA seeks to consult submitters of confidential information before that information is provided to another party, the ACMA cannot guarantee that confidential information will not be released through these or other legal means.
Privacy
The Privacy Act 1988 imposes obligations on the ACMA in relation to the collection, security, quality, access, use and disclosure of personal information. These obligations are detailed in the Australian Privacy Principles that apply to organisations and Australian Government agencies from 12 March 2014.
The ACMA may only collect personal information if it is reasonably necessary for, or directly related to, one or more of its functions or activities.
The purposesfor which personal information is being collected (such as the names and contact details of submitters) are to:
contribute to the transparency of the consultation process by clarifying, where appropriate, whose views are represented by a submission
enable the ACMA to contact submitters where follow-up is requiredor to notify them of related matters (except where submitters indicate they do not wish to be notified of such matters).
The ACMA will not use the personal information collected for any other purpose, unless the submitter has provided their consent or the ACMA is otherwise permitted to do so under the Privacy Act.
Submissions in response to this paper are voluntary. As mentioned above, the ACMA generally publishes all submissionsit receives, including any personal information in the submissions. If a submitter has made a confidentiality claim over personal information which the ACMA has accepted, the submission will be published without that information.The ACMA will not release thepersonal information unless authorised or required by law to do so.
If a submitter wishes to make a submission anonymously or through use a pseudonym, they are asked to contact the ACMA to see whether it is practicable to do so in light of the subject matter of the consultation. If it is practicable, the ACMA will notify the submitter of any procedures that need to be followed and whether there are any other consequences of making a submission in that way.
Further information on the Privacy Act and the ACMA’s privacy policy is available at The privacy policy contains details about how an individual may access personal information about them that is held by the ACMA, and seek the correction of such information. It also explains how an individual may complain about a breach of the Privacy Act and how the ACMA will deal with such a complaint.
acma | 1Attachment A—draft proposed standard fees for the ACMA’s radiocommunications activities
Activity ref. / Fee type / Reference to instrument[4] / Current description / Proposed description / Sub-type / Current fees / Proposed fees / Methodology(see last page)
1 / Documents / Sch 2 Part 3 item 3.1 / Issuing a duplicate instrument of any kind or, where such duplicate instrument cannot be issued, a letter on confirmation / No change / Duplicated instrument of any kind / $50 / $49 / Rounding
2 / Sch 2 Part 3 item 3.2 / Issuing a copy of a licence that includes changes to particulars of the licensee / No change / Licence copy—changed particulars / $50 / $49 / Rounding
3 / Assigned licence issue / Sch 2 Part 6 item 6.3 (b) / Issuing a broadcasting licence for the operation of a narrowband area service transmitter, or considering the issue of the licence without proceeding to issue it—for each frequency assigned, or requested for assignment, for the purpose of transmission: if the frequency operates outside the band 70–960 MHz / No change / Narrowband area service / Hourly rate @ $197 / $394 / Method A
4 / Sch 2 Part 6 item 6.4 / Issuing an earth licence for the operation of a mobile earth station, or considering the issue of the licence without proceeding to issue it—for each frequency assigned, or requested for assignment, for the purpose of transmission / No change / Mobile Earth / Hourly rate @ $197 / $99 / Method C