The Australian telecommunications sector has probably never felt closer to the Federal Attorney-General than it does in 2015 – but that proximity is not entirely enjoyable.

Amidst a rush of Government initiatives, the industry faces simultaneous policy and implementation challenges concerning data retention, telecommunications infrastructure security, the planned Copyright Notice Scheme industry code of practice, and proposed websiteblocking legislation.

The Data Retention legislation, requiring retention of a broad set of customer usage data by service providers for a two year period, passed the Senate on 26th March. Royal Assent was received on 13th April and the majority of the Act takes effect on 13th October.

Service providers unable to immediately comply with the complex retention requirements must, by that date, have their compliance implementation plans (outlining when and how they will be able to appropriately modify their systems) approved by Government.

The industry is waiting on word from the Government on the size of the financial contribution that it has promised to make towards the capital expenses that service providers will incur to comply (estimated at up to A$319 million). The Government is also yet to explain how it intends to share this cash among the many affected service providers; expect vigorous debate on this issue.

A service provider Experts Working Group is working with Government on implementation details, but without yet knowing the cost implications for providers and, more importantly, their customers.

Now, the Government has indicated it will introduce yet more legislation this year as it seeks to create a regime to monitor the ability of key telecommunications infrastructure to resist external cyber attacks. Known as the Telecommunications Sector Security Reform (TSSR) package, Government is proposing that this new framework be paid for by the industry – a further slug of around A$2-million per annum on providers and, by extension, their customers.

Things are no less busy on the copyright front. The Government directed in December 2014 that the Communications Alliance and our members work with rights holders and other stakeholders to draft a Copyright Notice Scheme Code to combat so-called internet piracy. After frenzied efforts, the Code was submitted to the Australian Communications and Media Authority on 8th April for registration.

The Code provides for up to three notices to be sent within a year to fixed residential broadband customers in response to allegations from rights holders that their copyright has been infringed though improper downloading of content. The Code does not provide for sanctions against customers, but does include a facilitated preliminary discovery process whereby persistent alleged infringers may (pursuant to a court order) have their details provided to rights holders, which may choose to pursue legal action.

The commercial agreement between rights holders and Internet Service Providers (ISPs), which will underlie the Code and funds its operation, is still under negotiation.

The Code provides for up to 200,000 notices per annum to be sent to customers, starting on or before 1st September 2015.
In more copyright-related news, the Government introduced legislation in April 2015 to create a website blocking regime, whereby rights holders (movie owners, music rights holders and others) would be able to seek court injunctions requiring ISPs to block access to offshore websites that are primarily designed to facilitate the infringement of online copyright through peer-to-peer file sharing technology such as ‘BitTorrent’.

Again, some of the costs associated with this new requirement look likely to fall at the feet of internet users.
Service providers support efforts to combat online piracy and, of course, to protect national security. Assisting these worthy objectives is, however, looking like a potentially expensive proposition for Australia’s ISPs and, by extension, its internet users.

ABOUT JOHN STANTON//

CEO of the Communications Alliance, John Stanton is a seasoned communications industry executive with over 18 years of experience. He served as CEO of ASX and NZX-listed telecommunications carrier, People Telecom and was also an executive with Intelsat, the largest provider of fixed satellite services worldwide.