Internet Association of Australia asks Wells to rethink telco rules for small providers

The Internet Association of Australia (IAA) and its members have sent an open letter to Communications and Sport Minister Anika Wells, asking for a meeting on how telecommunications regulation is designed and applied and what it does to competition. The letter had the backing of nine small and medium carriers and carriage service providers when it was published.

It argues that rules prompted by the failures of a few large tier-1 providers are being applied across the whole industry, imposing heavy compliance costs on hundreds of providers that have done nothing wrong. The IAA said the Telecommunications (Consumer Protections) Industry Standard 2026, now the subject of ACMA consultation, is a priority concern.

IAA chief executive Narelle Clark said members back strong consumer protection, but that regulation was restricting the whole industry with little regard to whether obligations made sense for small operators. She said the trend would have "a chilling effect on competition in the market as small operators are increasingly pushed out, which is not ultimately in the interest of consumers".

The association warned that a growing compliance burden, disproportionate obligations and a lack of practical support from regulators and government would discourage new entrants and push existing providers to exit or merge. It said consumers could face fewer choices, higher prices, poorer service and less access in regional and remote areas, where small providers often serve communities that larger companies have left underserviced. Clark said challenger providers keep pressure on price, service quality and innovation.

Beyond the industry standard, the letter calls for coordinated reform through a telecommunications regulatory initiatives grid and consultation with the breadth of industry rather than only tier-1 telcos. It also seeks consolidation of the various consumer protection rules under one regulatory instrument, and obligations and liability that reflect a provider's size, role in the supply chain and type of service. The IAA wants a review of the threshold that defines a large provider, with matching thresholds for medium and small providers. It further asks for realistic templates that a telco could adopt to gain a safe harbour for compliance.

The IAA is inviting other providers who share the concerns to sign on by emailing its policy address. Clark said the association is asking government to back practical, workable measures that keep protections strong while keeping the market competitive.