Telecommunications (Customer Service Guarantee) Direction 2023

The Telecommunications (Customer Service Guarantee) Direction 2023 is a ministerial direction issued by the Minister for Communications under section 124 of the Telecommunications (Consumer Protection and Service Standards) Act 1999. It commands the Australian Communications and Media Authority (ACMA) to remake the Customer Service Guarantee (CSG) Standard in substantially the same terms as the 2011 CSG Standard (as amended by the 2011 CSG Amendment Standard), but with a set of specific amendments listed in Schedule 1. The direction requires that the new CSG Standard repeal the 2011 CSG Standard and include a 36 month sunset clause so that the instrument ceases automatically the day after the end of that period. The direction itself commenced the day after it was registered (that is, 18 July 2023) and also repeals the earlier Telecommunications (Customer Service Guarantee) Direction (No. 1) 2011 in its entirety (Schedule 2). Mechanically, the direction updates references to the federal register of legislation and the Legislation Act 2003, replaces every occurrence of “working day” with “business day” (consistent with the Acts Interpretation Act 1901 definition), and removes several definitions: “remote location”, “standard zone”, “satellite service”, “working day”, and removes “approved standard marketing plan” and “universal service area” from a note. Critically, the direction abolishes the geographically differentiated connection periods under the USO regime and replaces them with a single national guaranteed maximum connection period of 20 business days from the customer’s request. It also modernises notification requirements: providers must publish notices on their own websites accessible by each customer rather than in a daily newspaper, and subsection 25(5) is removed. Several transitional provisions and obsolete sections are deleted (sections 3, 33, 36 and whole Part 7 of the 2011 Standard). The result is a streamlined, temporary Standard (36 months) that eliminates zone based distinctions and legacy references. The direction does not itself impose obligations on carriers or consumers; instead it sets the parameters for the legislative instrument ACMA must make. The 36 month sunset is notable because it deliberately creates a fixed lifespan, forcing a further review and replacement within that period. The direction also adds a definition of “new CSG Standard” and “2011 CSG Standard” to the new Standard to maintain continuity. By consolidating the connection period to 20 business days for all customers, the direction removes flexibility that previously allowed longer periods for remote or satellite served areas, which may increase compliance costs for providers serving hard to reach customers. The removal of the “approved standard marketing plan” references severs the link between the CSG Standard and the universal service provider’s marketing plan, centralising the connection benchmark in the instrument itself.

The central concept is the “Customer Service Guarantee Standard”, a legislative instrument made under sections 115, 117 and 120 of the Telecommunications (Consumer Protection and Service Standards) Act 1999. The direction itself does not contain the full content of the CSG Standard; instead it sets out the terms ACMA must incorporate when remaking it. The key concepts introduced or modified by the direction include:

Business day: defined by reference to section 2B of the Acts Interpretation Act 1901, replacing the earlier “working day” definition. This is a substantive change because the Acts Interpretation Act definition excludes weekends and public holidays in the place where the task is performed, whereas “working day” was previously defined in the instrument. The change harmonises the CSG Standard with general federal interpretation rules.

Guaranteed maximum connection period: subsection 8(2) of the new Standard must specify a period of 20 business days from the date of the customer’s request. Previously, the period was determined in accordance with an approved standard marketing plan for a primary universal service provider for the universal service area where the service was supplied or offered. The direction removes that flexible, plan based determination and imposes a single numerical standard. This eliminates the ability of providers to justify longer connection times based on geographic zone or satellite delivery constraints.

Exemption: defined to mean an exemption made under the new CSG Standard or under the 2011 CSG Standard. This preserves exemptions made under the previous instrument, giving them continued force even after the repeal of the 2011 Standard, unless superseded.

Removed definitions: “remote location”, “standard zone”, “satellite service” and “working day” are all deleted. Also removed are references to “approved standard marketing plan” and “universal service area” from note 1 to subsection 4(1). These deletions signal that the new Standard will no longer differentiate between geographic zones or service types for purposes of connection and repair timeframes. All customers will be subject to the same benchmarks, although exemptions may still be available.

New definitions added: “business day” (as noted), “new CSG Standard” and “2011 CSG Standard” (using the meanings from the direction). The addition of these definitions ensures that transitional provisions in the new Standard can refer unambiguously to the old and new instruments.

The primary audience for the direction is ACMA, which is compelled to make the new CSG Standard in accordance with the terms. ACMA’s regulatory staff must draft the instrument, update guidance materials, and ensure the 36 month sunset is included. However, the downstream effects fall on carriage service providers (CSPs) who supply standard telephone services or equivalent services to residential and small business customers. CSPs will need to adjust their operational processes to comply with the new connection benchmark of 20 business days uniformly, rather than based on zones or USO plans. Providers serving remote areas or satellite customers previously may have benefited from longer allowed periods under the old zone definitions; they now face tighter timeframes and potentially higher costs to achieve on time connections and repairs. The removal of the “approved standard marketing plan” link means that providers who relied on those plans to set connection and repair performance obligations must now look solely to the Standard. Customers (residential and small business) are indirectly affected: they gain a uniform national benchmark for connection speed (20 business days) and lose the newspaper notice requirement but gain website based notices. Customers without internet access may be disadvantaged if they cannot easily access the provider’s website for notices about outages or other matters. The TIO (Telecommunications Industry Ombudsman) will handle complaints about failures to meet the CSG benchmarks; the direction does not change TIO’s role or powers. The Australian Communications and Media Authority retains enforcement responsibilities under the Act. The 36 month sunset creates uncertainty for long term infrastructure investment; providers may be reluctant to invest in extending networks to remote areas if the CSG Standard expires and a replacement may impose different rules. The direction also affects the universal service regime indirectly by removing the reference to “universal service area” from the definitions note, but it does not amend the USO itself. Ultimately, the direction sharpens the compliance burden for CSPs by eliminating zone based differentiation and standardising cross reference updates, all within a temporary framework.

The direction imposes a duty on ACMA to make a new CSG Standard in substantially the same terms as the 2011 CSG Standard as amended by the 2011 CSG Amendment Standard, subject to the modifications in Schedule 1. ACMA must also repeal the 2011 CSG Standard, include a sunset clause of 36 months, and ensure the new Standard commences on or before 1 October 2023. ACMA is permitted (but not required) to correct typographical or grammatical errors, add explanatory notes, adjust formatting, and include transitional matters. ACMA’s duty is mandatory: the direction says “I direct ACMA to make” and “must repeal”, “must cease”, “must be made in accordance with” Schedule 1. The direction creates no duties directly on industry or consumers; those duties arise from the new CSG Standard once made. However, the direction sets the content of those duties by specifying, for example, that the guaranteed maximum connection period in subsection 8(2) must be 20 business days from the customer’s request. That provision will become a binding obligation on CSPs when ACMA transposes it into the new Standard. Other duties that will flow from the new Standard include: obligations to meet repair timeframes (the direction does not alter those timeframes in substance but substitutes “business day” for “working day”), obligations to provide appointment windows for installations and repairs, and obligations to publish notices on the provider’s website rather than in a newspaper. The removal of “remote location” and “standard zone” definitions means CSPs can no longer rely on those classifications to extend connection periods; all customers are to be treated uniformly. The new Standard will also include rights for customers to receive performance and to claim compensation (damages) under section 120 of the Act for failures to meet benchmarks. The direction itself does not specify those compensation details; they are carried over from the 2011 Standard. Transitional rights: because the definition of “exemption” includes exemptions made under the 2011 CSG Standard, any existing exemption that a provider held under the old instrument continues unless it ceases or is replaced by a new exemption. This provides some stability. Providers also have a right to seek ministerial guidance or to request ACMA exercise its discretion under the new Standard, but the direction does not create such rights. The 36 month sunset creates a duty on ACMA (or the Minister) to replace the Standard before it expires, otherwise the CSG regime will lapse. That is a duty on the regulator, not on industry. In summary, the direction channels the rights and duties that will appear in the new Standard, with the most significant change being the fixed 20 business day connection period and the shift to website publication.

The direction itself contains no penalty provisions. Enforcement mechanisms derive from the Telecommunications (Consumer Protection and Service Standards) Act 1999 and the new CSG Standard when made. Sections 115, 117 and 120 of the Act provide the basis for civil penalties if a CSP contravenes a CSG Standard. Under section 120, a customer who suffers loss or damage because a CSP fails to meet a performance standard may recover damages from the CSP in a court of competent jurisdiction. The direction removes references to earlier contravention provisions: Schedule 1 item 18 deletes section 36 of the 2011 CSG Standard (which dealt with contraventions and damages payable under the 2000 Standard). This clarifies that only contraventions under the current Standard (the new CSG Standard) are actionable. The removal of section 36 also eliminates any residual liability under the 2000 Standard for past conduct, which may reduce potential claims but also cuts off historical enforcement. The direction does not alter ACMA’s enforcement powers: ACMA may issue remedial directions, accept enforceable undertakings, seek civil penalties, or apply to the Federal Court for an injunction. The TIO retains its role in conciliating and resolving complaints about service quality and compensation. The uniform 20 business day connection period may simplify enforcement because ACMA and TIO no longer need to assess geographic zones or USO plan approvals when determining whether a provider breached the connection timeframe. However, the removal of zone differentiation may also reduce the availability of exemptions; providers who fail to connect within 20 business days in a remote area must now justify the delay by reference to a valid exemption rather than a longer allowed period. The sunset clause creates an indirect enforcement risk: if the new Standard sunsets without a replacement, the CSG regime ceases, leaving customers and TIO without statutory benchmarks. ACMA and the Minister could face political pressure to renew the Standard, but the direction imposes no legal consequence for failure to renew. Enforcement is also affected by the shift to website publication: if a provider fails to publish a required notice on its website (accessible by each customer), it may be in breach of the Standard. The direction removes the alternative newspaper publication, so online posting becomes the sole requirement. That may make enforcement easier to verify (by checking the website) but harder to ensure all customers receive notice. Overall, the direction tightens the enforcement framework by removing old transitional provisions and standardising timeframes, while the 36 month sunset introduces a structural risk of regulatory lapse.

The direction is made under section 124 of the Telecommunications (Consumer Protection and Service Standards) Act 1999 (the Act). The new CSG Standard will be made under sections 115, 117 and 120 of the same Act. The direction explicitly requires that the new Standard incorporate references to the Legislation Act 2003 (replacing the Legislative Instruments Act 2003) and the Federal Register of Legislation (replacing the Federal Register of Legislative Instruments). This aligns the CSG Standard with current federal legislative framework. The direction also adopts the definition of “business day” from section 2B of the Acts Interpretation Act 1901, making the CSG Standard consistent with the default interpretation rules for Commonwealth instruments. The direction updates the cross reference to the “Telecommunications (Emergency Call Service) Determination 2009” to the “Telecommunications (Emergency Call Services) Determination 2019”, ensuring the new Standard refers to the current emergency call service instrument. The direction removes references to the Australian Standard Geographical Classification (ASGC) 2006 publication and substitutes the ABS publication “Australian Statistical Geography Standard (ASGS) Edition 3” for the note in subsection 11(6) and Schedule 1. This keeps the geographic referencing up to date. The interaction with the universal service obligation (USO) regime is altered indirectly: the definitional removal of “approved standard marketing plan” and “universal service area” from the note to subsection 4(1) severs the link between the CSG Standard and the USO marketing plan. Previously, the connection period for a USO provider was tied to its approved marketing plan; now it is a flat 20 business days. This does not amend the USO itself but means that USO providers must meet the same connection benchmark as other providers, reducing the regulatory coordination between CSG and USO. The direction does not affect the Competition and Consumer Act 2010 or state fair trading legislation, but the CSG Standard operates as a minimum standard; customers retain rights under general consumer law. The interaction with the TIO scheme is unchanged: the TIO will continue to handle CSG complaints under its terms of reference. The direction itself is not a CSG Standard but a direction to ACMA; it is a legislative instrument subject to disallowance under the Legislation Act 2003. The 36 month sunset in the new Standard interacts with the Acts Interpretation Act 1901 provision that unless a legislative instrument is set to expire, it continues indefinitely. By imposing a sunset, the direction forces periodic review. The repeal of the earlier 2011 direction (Schedule 2) ensures that no conflicting ministerial directions remain in force. In summary, the direction updates statutory references, harmonises day counting, removes USO coordination, and introduces a forced expiry, all within the existing legislative architecture.

This direction is a new instrument made on 17 July 2023 and registered on that date. It replaces the Telecommunications (Customer Service Guarantee) Direction (No. 1) 2011, which is repealed in full by Schedule 2. The direction itself has no prior amendments; it is the original version. The direction mandates that ACMA make a new CSG Standard that repeals the 2011 CSG Standard and the 2011 CSG Amendment Standard. The 2011 CSG Standard had itself been amended by the 2011 CSG Amendment Standard (No. 1), and that composite version is the template for the new Standard, subject to the Schedule 1 modifications. The direction also removes several historical provisions: section 3 (which may have contained objects or definitions), section 33 (transitional from an earlier amendment), section 36 (transitional from the 2000 Standard), and the whole of Part 7 (which likely contained miscellaneous or transitional provisions). The effect is to strip out outdated transitional mechanisms and leave a cleaner instrument that only deals with current matters. The inclusion of a 36 month sunset is a new feature; the 2011 CSG Standard did not have an inbuilt expiry, nor did the earlier 2011 direction. The direction thus represents a deliberate shift to a temporary regulatory framework, possibly to allow for a more fundamental review of the CSG regime within three years. The amendment history also includes non substantive updates such as replacing references to the Federal Register of Legislative Instruments with the Federal Register of Legislation, and replacing the Legislative Instruments Act 2003 with the Legislation Act 2003. These reflect changes to the broader Commonwealth legislative framework. The removal of the newspaper publication requirement and substitution of website publication is a notable operational change. The removal of the definitions for remote location, standard zone, and satellite service is a significant substantive amendment that eliminates geographic differentiation. The direction also adds definitions for “new CSG Standard” and “2011 CSG Standard” to assist with transitional interpretation. No amendment history for the underlying Act is provided, but the direction itself has a clean slate.

The source instrument (the direction) does not refer to any specific litigation. Accordingly, no cases are cited. The CSG regime has been the subject of occasional disputes in the past, typically concerning the application of exemptions, the calculation of timeframes, and the quantum of damages under section 120 of the Act. Some litigation has arisen between customers and carriers in state and federal tribunals. However, the direction itself makes no reference to any court decisions, and it does not purport to resolve any particular legal controversy. The direction is not a response to a court ruling; it is a ministerial instruction to update and simplify the regulatory framework. The removal of the definitions of “remote location” and “standard zone” may reduce the scope for geographical disputes about connection periods. The fixed 20 business day period eliminates the need to litigate whether a provider’s approved marketing plan justified a longer period. The shift to website publication may reduce the likelihood of disputes about whether a notice was properly published in a newspaper, but it may introduce new issues about what constitutes “accessible by each customer” on a website. The removal of section 36 of the 2011 Standard, which preserved liability under the 2000 Standard, may have implications for any pending claims based on conduct that occurred under the 2000 Standard; those claims may now be extinguished unless saved by general law. The sunset clause could itself become the subject of litigation if the Standard expires and customers argue that a regulatory gap exists, but the direction does not provide a private right of action for regulatory failure. In summary, the direction does not directly generate or respond to litigation, but it alters the legal landscape that may be contested in future.

Several aspects of the direction could trap unwary CSPs or customers. First, the 20 business day connection period applies uniformly. Providers who previously relied on the “remote location” or “standard zone” definitions to justify longer connection times (e.g., 30 or 40 business days) will find that those definitions are no longer in the new Standard. Unless a specific exemption is obtained, the provider must connect within 20 business days or face potential liability. This is a significant tightening for satellite served premises and remote areas. Second, the definition of “exemption” in the new Standard includes exemptions made under the 2011 CSG Standard. That means existing exemptions continue, but only if they were validly made under the old instrument. If an exemption was tied to the “remote location” definition, it may lose its factual basis if that definition no longer exists in the new Standard. The direction does not explicitly grandfather the substance of such exemptions; transitional provisions may address this, but the risk remains. Third, the replacement of “working day” with “business day” may change calculation of timeframes. Under the Acts Interpretation Act 1901, a “business day” excludes Saturdays, Sundays, and public holidays in the place where the act is to be done. The old definition of “working day” may have included Saturdays or public holidays depending on the definition. Providers need to recalibrate their internal calendars and systems. Fourth, the notice requirement now mandates publication on the provider’s website that is accessible by each customer. This could be problematic for providers with multiple customer segments; if some customers cannot access the website (e.g., no internet, vision impairment), the provider may argue accessibility but could face enforcement if the notice is not reasonably accessible. The removal of newspaper publication means there is no fallback. Fifth, the direction removes section 36 of the 2011 Standard (transitional provisions for the 2000 Standard) and section 33 (transitional for an earlier amendment). This could expose providers to claims that historical conduct is no longer covered by transitional immunities. Sixth, the 36 month sunset is a ticking clock. If ACMA or the Minister fails to replace the Standard before it expires, the entire CSG regime falls away, leaving no statutory performance benchmarks. Providers would then have no CSG obligations, but customers would lose their right to compensation. The direction itself does not compel any action after the sunset; it merely requires that the new Standard include the sunset. Regulatory gaps are possible. Seventh, the direction says the new Standard must be in “substantially the same terms” as the 2011 Standard subject to Schedule 1. The word “substantially” allows ACMA some discretion but creates uncertainty about how much deviation is permitted. Providers who rely on the precise text of the 2011 Standard may find that ACMA has introduced additional modifications that are not clearly authorised. Eighth, the definition amendments in Schedule 1 item 3(j) remove “approved standard marketing plan” and “universal service area” from note 1 but add “satellite service” after “primary universal service provider”. That suggests the note itself may be revised, but the effect is unclear; the note is not substantive law but could be used in interpretation. Finally, the direction does not address compensation amounts or the calculation of damages. Those remain as in the 2011 Standard, but the 2011 Standard’s compensation provisions may need updating (e.g., inflation). The direction does not direct ACMA to adjust monetary amounts, so they remain static.

For ACMA, compliance is straightforward: make the new CSG Standard in the terms specified, ensure it repeals the 2011 CSG Standard and commences on or before 1 October 2023, include the 36 month sunset, and incorporate the changes from Schedule 1. ACMA should also issue guidance to industry explaining the key changes, particularly the substitution of business days for working days, the new uniform connection period, and the website publication requirement. ACMA should publish the new Standard on the Federal Register of Legislation and communicate with carriage service providers and the TIO.

For carriage service providers, compliance requires several operational steps. First, update all internal systems, contracts, and customer facing materials to replace “working day” with “business day” and ensure timeframes are calculated using the Acts Interpretation Act 1901 definition. Second, adjust network planning and resource allocation to connect new customers within 20 business days, regardless of geographic location. If serving remote areas where it is physically impossible to connect within 20 business days, providers must apply for an exemption under the new Standard or negotiate transitional arrangements. Third, review any existing exemptions held under the 2011 CSG Standard to confirm they remain valid under the new definition of “exemption”. Fourth, update notification processes: cease placing notices in daily newspapers for CSG related matters; develop a dedicated section on the provider’s website accessible by all customers (e.g., no paywall, machine readable, text based) to publish required notices. Ensure the website is designed to accommodate customers with disabilities and those without reliable internet access; consider alternative notification methods for vulnerable customers to avoid complaints. Fifth, train customer service, installation, and repair staff on the new timeframes and the removal of zone based exemptions. Sixth, update compliance monitoring systems to track performance against the new uniform benchmarks and to report any breaches to ACMA. Seventh, review the new Standard when made for any transitional provisions that may affect pending claims or exemptions. Eighth, plan for the 36 month sunset: participate in any consultation on the future of the CSG regime and model the financial implications of potential changes to the Standard. Finally, maintain records showing compliance with the 20 business day connection period and other performance benchmarks, as these may be required if the TIO investigates a complaint. Providers should also review their complaint handling procedures to ensure they can quickly identify CSG related complaints and process compensation payments where applicable. The direction itself does not mandate any specific compliance steps for industry, but the new Standard will do so. Providers should monitor ACMA’s website for the draft and final new CSG Standard and seek legal advice on any ambiguity. The key cost is the possible need to accelerate connections in remote areas, but providers may negotiate exemptions or seek to adjust pricing structures to reflect the higher cost of compliance under a uniform standard.