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Informed Decisions for Backup Power Supply Arrangements – Regulation Impact Statement – Australian Communications and Media Authority

On 22 August, the Chairman of the Australian Communications and Media Authority (ACMA) announced new rules for telecommunication service providers regarding the backup power supply for National Broadband Network (NBN) voice services. Following the national rollout of the NBN, approximately twenty-six per cent of Australians will be connected to the NBN via fibre to the premises technology. During a power outage, households connected to the NBN via fibre to the premises technology will not have access to fixed-line telephone services without a backup battery supply. The inclusion of a backup battery in NBN service packages is at the discretion of individual telecommunication service providers. The RIS explored options to address the problem that telecommunication service providers may face commercial incentives to minimise the amount of information provided to consumers regarding backup battery supply. The RIS identified a principles-based service provider determination as offering the highest net benefit, and was the recommended option. A principles-based determination balances the need for consumers to be adequately informed and the costs to providers of maintaining records of informed consent. Submissions received during the RIS consultation period revealed that telecommunications industry participants opposed the development of a service provider determination, while regulatory bodies and NBN Co were supportive of government action. The proposal has been assessed as likely to have a limited impact on the economy with minor impacts on competition. The preferred option is expected to increase regulatory burden by $230,000 per annum. The OBPR agreed to the regulatory cost and offset estimates. A Regulation Impact Statement (RIS) was prepared and certified by the Australian Communications and Media Authority under the March 2014 Australian Government best practice regulation requirements, and has beenassessed as compliant by the Office of Best Practice Regulation. The level of analysis contained in the RIS was considered consistent with best practice.