Telecommunications Legislation Amendment (Competition and Consumer) Act 2020 (47 of 2020)

5   Modelling of Regional Broadband Scheme

Report

 

(1) The Australian Competition and Consumer Commission ( ACCC ) must prepare a report in relation to the Regional Broadband Scheme that includes:

(a) the estimates referred to in subsection (3); and

(b) such other matters (if any) as the ACCC considers relevant.

      

(2) The purpose of the report is to provide updated costings in relation to the amount of the base component specified in paragraph 12(1)(a) of the Regional Broadband Scheme Charge Act, using the same model and methodology that was previously used to determine that amount but taking into account changes to inputs and assumptions that have occurred since that amount was first determined.

      

(3) The report must include an estimate of each of the following:

(a) the total losses that have been incurred by NBN Co in relation to fixed wireless broadband and satellite broadband matters during the period beginning on 1 July 2009 and ending on 30 June 2020;

(b) the total of the reasonable losses likely to be incurred by NBN Co in relation to fixed wireless broadband and satellite broadband matters during the period beginning on 1 July 2009 and ending on 30 June 2040 (the total expected net losses );

(c) the amount that the base component for a month (within the meaning of the Regional Broadband Scheme Charge Act) would be required to be in order for the Commonwealth to receive a total amount by way of charge imposed by that Act that would offset the total expected net losses, if it were assumed that paragraph 9(1)(b) of that Act had not been enacted;

(d) the total of the reasonable losses likely to be incurred by NBN Co in relation to fixed wireless broadband and satellite broadband matters during the period beginning on 1 July 2020 and ending on 30 June 2040 (the total expected net forward facing losses );

(e) the amount that the base component for a month (within the meaning of the Regional Broadband Scheme Charge Act) would be required to be in order for the Commonwealth to receive a total amount by way of charge imposed by that Act that would offset the total expected net forward facing losses, if it were assumed that paragraph 9(1)(b) of that Act had not been enacted;

(f) the total expected number of chargeable premises by reference to which charge is to be calculated under the Regional Broadband Scheme Charge Act during the financial year beginning on 1 July 2025;

(g) such other matters (if any) as the ACCC considers relevant.

Note: For paragraph (f), see section 11 of the Regional Broadband Scheme Charge Act in relation to how numbers of chargeable premises are used in calculating charge under that Act.

      

(4) The report must specify the aggregated data inputs and the modelling assumptions upon which the estimates referred to in subsection (3) were determined.

      

(5) In preparing the report, the ACCC:

(a) must use the methodology and model that was used by the Department of Communications and the Arts' Bureau of Communications Research for the report entitled NBN non-commercial services funding options - Final report March 2016; but

(b) must, in doing so, update the inputs and assumptions of the methodology and model to reflect changes that have occurred since the publication of that report.

      

(6) Without limiting paragraph (5)(b), the following are changes that must be taken into account in updating the inputs and assumptions:

(a) changes in the inputs for estimating the total number of chargeable premises by reference to which charge is imposed by the Regional Broadband Scheme Charge Act;

(b) changes in the inputs for build costs in relation to fixed wireless broadband and satellite broadband matters;

(c) changes in the inputs for estimating future capital expenditure requirements in relation to fixed wireless broadband and satellite broadband matters.

      

(7) In preparing the report, the ACCC must assume that Division 6 of Part 3 of the Telecommunications (Consumer Protection and Service Standards) Act 1999 had not been enacted.

Note: That Division deals with charge offset certificates.

      

(8) Before the end of the 150-day period beginning when this section commences, the ACCC must:

(a) give the Minister the report; and

(b) make the report available on the ACCC's website.

      

(9) The Minister must cause a copy of the report to be tabled in each House of the Parliament within 5 sitting days of receiving it.

Use of the word "Regional"

      

(10) To avoid doubt, the use of the word "Regional"in this section does not limit:

(a) subsection 80(1) of the Telecommunications (Consumer Protection and Service Standards) Act 1999; or

(b) subsection 13(3) of the Regional Broadband SchemeCharge Act.

Definitions

      

(11) In this section:

fixed wireless broadband and satellite broadband matters means the matters referred to in paragraphs 13(3)(a) to (d) of the Regional Broadband Scheme Charge Act.

Minister means the Minister administering the Telecommunications Act 1997.

NBN Co has the same meaning as in the National Broadband Network Companies Act 2011.

Regional Broadband Scheme means the scheme embodied in:

(a) Part 3 of the Telecommunications (Consumer Protection and Service Standards) Act 1999; and

(b) the Regional Broadband Scheme Charge Act.

Regional Broadband Scheme Charge Act means the Telecommunications (Regional Broadband Scheme) Charge Act 2020.