ACMA calls for comment on Do Not Call Register access fee options

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ACMA calls for comment on Do Not Call Register access fee options

Soof - Australian Communications And Media Authority

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26 March 2007 MR 27/2006 ACMA calls for comment on Do Not Call Register access fee options The Australian Communications and Media Authority has released a discussion paper on the fees telemarketers will be charged to access the Do Not Call Register. This is another important step in the development of the register which is due to commence in May 2007. Industry is invited to comment on two possible access fee pricing options – both based on an annual subscription fee and excess usage charge model. The two access fee pricing options are: • Option 1 – aims to recoup the full identified cost over four years. Industry costs will be the same in each year. • Option 2 – aims to build up to full cost recovery arrangements over the four years and recoup part of the identified cost. Industry costs will gradually increase each year. Under each option there is a subscription type that allows telemarketers to check up to 500 numbers per year at no cost. In 2006, the government provided funding of $33.1 million over four years to establish the Do Not Call Register. The government also announced that approximately $15.9 million would be recovered from telemarketers over the same period. ACMA has now proposed that due to lower than expected costs for the establishment of the Register, the maximum identified costs to be recovered from industry are $11.4 million over four years. Under the scheme, telemarketers may submit their telephone number lists to the ...

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26 March 2007

MR 27/2006

ACMA calls for comment on Do Not Call Register access fee options

The Australian Communications and Media Authority has released a discussion

paper on the fees telemarketers will be charged to access the Do Not Call

This is another important step in the development of the register which is due to

commence in May 2007.

Industry is invited to comment on two possible access fee pricing options – both

based on an annual subscription fee and excess usage charge model.

The two access fee pricing options are:

•

Option 1 – aims to recoup the full identified cost over four years.

Industry costs will be the same in each year.

•

Option 2 – aims to build up to full cost recovery arrangements over the

four years and recoup part of the identified cost. Industry costs will

gradually increase each year.

Under each option there is a subscription type that allows telemarketers to check

up to 500 numbers per year at no cost.

In 2006, the government provided funding of $33.1 million over four years to

establish the Do Not Call Register. The government also announced that

approximately $15.9 million would be recovered from telemarketers over the

same period.

ACMA has now proposed that due to lower than expected costs for the

establishment of the Register, the maximum identified costs to be recovered from

industry are $11.4 million over four years.

Under the scheme, telemarketers may submit their telephone number lists to the

calling lists will help telemarketers avoid breaching the Act.

ACMA engaged Access Economics to assist in developing an appropriate access

fee pricing model.

A copy of the discussion paper can be found at

www.acma.gov.au/donotcall

r by

calling 03 9963 6895.

Written responses to the draft discussion paper are due no later than Thursday 5

April 2007.

Regular updates on the implementation of the Do Not Call Register scheme can

be found at

www.acma.gov.au/donotcall

Media contact: Donald Robertson, ACMA Media Manager, on (02) 9334 7980.

ACMA Media Release | MR 27/2006

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Backgrounder

Legislation to establish the Do Not Call Register scheme received Royal Assent

on 30 June 2006. The Australian Government introduced the legislation in

response to the increasing level of community concern about the growth in

unsolicited telemarketing calls.

The government announced funding of $33.1 million over four years for

developing and implementing the Do Not Call Register, of which approximately

$15.9 million was anticipated to be recovered through fees to access the register.

Full cost recovery of the register’s operating costs is intended to occur from

February 2011.

Under the Do Not Call Register legislation, ACMA is responsible for establishing

and overseeing the operation of the Register. In February 2007, ACMA contracted

Service Stream Solutions Pty Ltd to build and operate the register until February

2011.

It will generally be unlawful to make telemarketing calls to numbers placed on the

Do Not Call Register. The Act allows persons (such as telemarketers) to submit

their contact lists to the register operator for checking against the register. Upon

submission of the list and payment of the appropriate access fee (if any), the

(if any) are, or are not, on the register. This process of ‘washing’ contact lists will

assist telemarketers to comply with the Act.

The two access fee pricing options ACMA is seeking comment on are:

Option 1 – Full identified cost / Annual subscription fees plus excess usage charges

Annual subscription fee

Excess usage charge (per

submitted number over upper

limit)

Subscription

type

Annual quantity of

submitted numbers

included in

subscription

Yr 1

Yr 2

Yr 3

Yr 4

Yr 1

Yr 2

Yr 3

Yr 4

A (1,943)

0 - 500

$0.009

B (154)

Up to 100,000

$800

$0.009

C (77)

Up to 1,000,000

$6,000

$0.009

D (54)

Up to 5,000,000

$23,000

$0.009

E (15)

Up to 10,000,000

$41,000

$0.009

Note 1 Estimated number of access seekers that will take-up the subscription type. Under this option, $11.4 million is expected to be

recovered over the four years.

ACMA Media Release | MR 27/2006

2 of 3

Option 2 – Graduated partial identified cost / Annual subscription fees plus excess usage

charges

Annual subscription fee

Excess usage charge (per

submitted number over

upper limit)

Subscription

type

Annual quantity of

submitted numbers

included in

subscription

Yr 1

Yr 2

Yr 3

Yr 4

Yr 1

Yr 2

Yr 3

Yr 4

A (1,943)

0 - 500

$0.003

$0.005

$0.006

$0.008

B (154)

Up to 100,000

$300

$400

$500

$700

$0.003

$0.005

$0.006

$0.008

C (77)

Up to 1,000,000

$2,000

$4,000

$6,000

$0.003

$0.005

$0.006

$0.008

D (54)

Up to 5,000,000

$8,000

$13,000

$15,000

$20,000

$0.003

$0.005

$0.006

$0.008

E (15)

Up to 10,000,000

$14,000

$23,000

$27,000

$36,000

$0.003

$0.005

$0.006

$0.008

Note 1 Estimated number of access seekers that will take-up the subscription type. The percentage of the identified costs to be recovered

($11.4 million spread equally over four years) each year is (30% Year 1, 50% Year 2, 67% Year 3 and 83% Year 4). Under this option $6.6

million is expected to be recovered over the four years.

ACMA engaged Access Economics to assist in developing an appropriate access

fee pricing model. Access Economics’ recommended pricing structure was an

‘Annual Subscription Fees and Excess Usage Charges’ model which has been

likened to a ‘broadband’ type of pricing structure. Alternative fee structures

considered included a single usage price per number washed.

Access Economics estimated a lower and upper range of 100 and 300 paying

telemarketers each year.

ACMA is expecting to determine the fees for accessing the Do Not Call Register

in April 2007.

Do Not Call Register

The Do Not Call Register will commence operation in May 2007. Once the

exempt telemarketer in Australia and overseas to contact a number listed on the

Certain public interest entities will still be allowed to make specific types of calls

to numbers on the register. Government bodies, educational or religious

organisations, registered political parties, independent members of parliament,

electoral candidates and charities will all be entitled to these exemptions, as will

market and social researchers when conducting opinion polling and standard

questionnaire-based research calls. These calls will, however, be subject to the

national standard.

ACMA will be responsible for overseeing the register’s operation and

investigating breaches of the Do Not Call Register legislation.

(end)

ACMA Media Release | MR 27/2006

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