Consultation on Telstra request for extensions to Ministerial exemptions for its South Brisbane and Velocity networks

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On 8 April 2020, Telstra asked the Minister for Communications, Cyber Safety and the Arts to extend exemptions from the default structural separation requirements for its South Brisbane and ‘Velocity’ fibre networks. We are seeking views on this request.

Why we want your input

The decision to grant an exemption is a matter for the Minister's discretion. The Minister can consider views expressed during consultations when deciding whether to grant exemptions and whether to place specific conditions on them.

How you can voice your opinion

You can provide a submission to this public consultation process. Submissions are due by 5 June 2020

What will be the outcome of this consultation?

The Department of Infrastructure, Transport, Regional Development and Communications is seeking views on a request from Telstra for extensions to Ministerial exemptions for its South Brisbane and ‘Velocity’ fibre networks. Without these exemptions, Telstra would be required by Parts 7 and 8 of the Telecommunications Act 1997 to supply wholesale layer 2 bitstream services on a wholesale-only basis over these networks.

The exemptions were first granted in 2012, and without extension will expire on the Designated Day, which has been set at 1 July 2020. Under the Telecommunications Act 1997, the Minister for Communications, Cyber Safety and the Arts can exempt networks, lines and network owners from the Parts 7 and 8 requirements. The exemptions can be conditional or unconditional.

The Issue

Details of Telstra’s request and its proposed changes to the exemption instruments are contained in the following documents. Please note that on 27 May 2020, Telstra provided an updated version of its request, which has been labelled as a ‘supplementary update’ in the links below.

In summary, Telstra is requesting the Minister to extend the expiry date of the exemptions from the 1 July 2020 to the earlier of:

1 July 2023, if Telstra still owns the network, and
90 days after the last customer transition is complete, if Telstra sells the network to a third party.

Relevant Documentation

Supplementary update of Telstra request for variation to the Telecommunications (Network Exemption–Telstra South Brisbane Network) Instrument 2012 and the Telecommunications (Network Exemption–Telstra Specified Velocity Networks) Instrument 2012

Published 27th May 2020

Download PDF (212.92 KB) Download DOC (28.67 KB)

Supplementary update of Telstra request for variation to the Telecommunications (Network Exemption–Telstra South Brisbane Network) Instrument 2012 and the Telecommunications (Network Exemption–Telstra Specified Velocity Networks) Instrument 2012.

Telstra request for variation to the Telecommunications (Network Exemption–Telstra South Brisbane Network) Instrument 2012 and the Telecommunications (Network Exemption–Telstra Specified Velocity Networks) Instrument 2012.

Published 20th May 2020

Download PDF (215.35 KB) Download DOC (28.73 KB)

Telstra provided a document that sets out the background behind the existing exemptions and outlines Telstra’s arguments as to why the Minister should grant extensions to the current exemption instruments.

Telstra’s proposed changes to the Telecommunications (Network Exemption–Telstra South Brisbane Network) Instrument 2012 in mark-up format.

Published 20th May 2020

Download PDF (457.58 KB) Download DOC (213.08 KB)

Telstra’s proposed changes to the Telecommunications (Network Exemption–Telstra South Brisbane Network) Instrument 2012 in mark-up format.

Telstra’s proposed changes to the Telecommunications (Network Exemption–Telstra Specified Velocity Networks) Instrument 2012.

Published 20th May 2020

Download PDF (345.6 KB) Download DOC (26.73 KB)

Telstra’s proposed changes to the Telecommunications (Network Exemption–Telstra Specified Velocity Networks) Instrument 2012.

Outcome

The Department of Infrastructure, Transport, Regional Development and Communications received submissions from:

the Australian Communications Consumer Action Network (ACCAN)
the National Broadband Network (NBN), and
57 confidential and 14 non-confidential submissions from consumers living and working in the South Brisbane and Velocity network areas.

The Minister also received independent advice from the Australian Competition and Consumer Commission (ACCC) (download PDF) and the Australian Communications and Media Authority (ACMA).

After considering this feedback, the Minister for Communications has decided to grant extensions to both exemptions until the earlier of the day which is 90 days after the customer transition completion date or 1 July 2022 (if Telstra owns the South Brisbane Network or Velocity networks on that day). The Minister considers the extension will provide Telstra with sufficient time to dispose of the networks or become compliant with the requirements.

The amending instruments and the associated Explanatory Statements are available on the Department's Telecommunications Act Parts 7 and 8 requirements and exemptions webpage.