The Statutory Infrastructure Provider (SIP) regime is set out in Part 19 of the Telecommunications Act 1997 (the Act) and commenced on 1 July 2020. It aims to ensure that all people in Australia can access high speed broadband services. Under the Act, NBN Co Limited is the default SIP for Australia. The SIP regime also provides for alternative providers to become SIPs for the geographic areas in which they deploy telecommunications infrastructure.
There are three main routes by which alternative providers become the SIPs for service areas: through deeming provisions in the statute; through nominating service areas themselves; or by Ministerial designation. There are a number of carriers that have become SIPs under the regime. A full list of SIPs is on the SIP register maintained by the ACMA, and is updated regularly.
SIPs have an obligation to connect premises in their service areas to their telecommunications networks, and supply wholesale services. The wholesale services must allow the retail provider to supply 'qualifying carriage services', which are broadband services with peak download and upload speeds of at least 25/5 Mbps. On fixed-line and fixed-wireless networks, the wholesale services SIPs supply must also be able to support voice services.
The ACMA is responsible for enforcing SIP obligations and monitoring compliance. If a provider does not meet its obligations, the ACMA can use a range of enforcement mechanisms, including: formal warnings; infringement notices, and remedial directions.
Amendments to the SIP regime
The Telecommunications Legislation Amendment (Enhancing Consumer Safeguards and Other Measures) Act 2024 gives Australians greater certainty about telecommunications access.
The legislation made a number of changes to telecommunications consumer safeguards to make them more effective. The legislation:
- provides greater certainty to consumers where their current SIP chooses to stop offering services. The SIP is required to provide sufficient notice to NBN Co which, as the default SIP for Australia, will then have time to provide alternative infrastructure for consumers.
- provides that Carriage Service Providers (CSPs) operating private networks that service new developments are subject to SIP obligations
- makes clear the Telecommunications Industry Ombudsman's role in resolving disputes about service connections
- provides important powers for the Australian Communications and Media Authority to enforce protections.
Exceptions to SIP obligations
There are limited circumstances where connection and supply obligations do not apply. These circumstances are outlined in a newly updated Telecommunications (Statutory Infrastructure Providers—Circumstances for Exceptions to Connection and Supply Obligations) Determination 2024.
The determination addresses real-world issues where SIPs may be required to reject a request for connection or supply, for example where it is not safe for SIP employees to undertake work or construction works are not sufficiently progressed to allow broadband services to be installed. Importantly, the exemptions will only apply until the issue in question is remedied. The Determination and associated explanatory materials help developers understand what they need to do to get developments connected to broadband.
Further Information
- SIP obligations for Carriage Service Providers (CSPs)
- Statutory Infrastructure Providers (SIPs) | ACMA
Future steps
The Minister has asked the Department to consult on standards, rules and benchmarks for the SIP regime. To ensure the best outcomes for consumers, the Department is investigating whether it should become a requirement for all SIPs to ensure that all their service areas are connected to at least two backhaul links. Such a requirement would ensure that damage or maintenance to backhaul lines would not result in extended outages for consumers, as a second link would generally be able to provide backup services.
A consultation paper and draft instrument about the proposed backhaul requirement will be made available on the have-your-say page in the near future. Any interested stakeholders who wish to provide comment or discuss this proposal prior to the consultation, please contact the department at sip@infrastructure.gov.au.