Fed Gov sharpens telecom watchdog’s teeth

The federal government is introducing reforms to strengthen Australia’s telco regulator.

These include measures that will allow the Australian Communication and Media Authority to clamp down on compliance and increase its enforcement powers.

Under proposed amendments to the Telecommunications Act 1997, the ACMA will be able to take direct and immediate action against telecom providers that have beached customer obligations. As it stands, the ACMA has to first issue providers with a formal instruction to comply – no matter the seriousness of the breach – before taking enforcement action.

The government is also moving to amend the Act to increase the maximum penalties for breaches of industry codes and standards from $250,000 to $10 million – aligning the telecom industry with other sectors like energy and banking.

Additional changes will allow for the courts to determine penalty amounts based on a provider’s financial turnover and the scale of the breach.

Michelle Rowland (aph.gov.au)

“Nobody wants an industry that sees penalties as the ‘cost of doing business’,” Minister for Communications Michelle Rowland said. “These changes provide a powerful deterrent, improve the likelihood of compliance and lead to a better functioning telecommunications sector.”

The reforms stem from government consultation with industry, regulators, the Telecommunications Industry Ombudsman and consumer advocates. “Most importantly, we’ve listened to customers,” said Rowland. “We’re committed to putting customers at the centre of the telco industry.”

Carol Bennett (ACCAN)

Australia’s peak communications consumer body ACCAN called the reforms a major win for customers. “This announcement by the Australian government addresses longstanding calls from consumer advocates to improve accountability in the telecommunications sector and we applaud these critical reforms,” ACCAN CEO Carol Bennett said.

“The government’s announcement to boost the enforcement powers of the ACMA will ensure telcos face real and meaningful penalties if they breach their obligations to Australians. This is a critical step towards ensuring that the telco sector works in the interests of consumers,” she added.

The suite of reforms have also been welcomed by industry body the Communications Alliance, which has “consistently called for stronger enforcement powers for the ACMA”, said its CEO Luke Coleman. “Australians expect the highest standards of business behaviour from telcos, and these new direct enforcement powers will ensure they are held to account by the regulator.”

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