Small telco open letter on regulation burden passes 20 signatories

The Internet Association of Australia said on Monday 9 November 2026 that its open letter to Communications and Sport Minister Anika Wells now carries more than 20 signatures, up from nine when it was published on 26 October 2026. The association says the signatories likely cover a combined 200,000-plus services in operation. They include sole-trader ISPs, small teams and publicly listed telcos.

The letter urges rules that are proportionate and workable, and that do not add to the difficulty of running a small provider. IAA chief executive Narelle Clark said the reaction from members and the wider industry had been "massive". She said telcos of all sizes back strong consumer protections but are warning that the combined cost and complexity of regulation threatens a healthy, competitive market.

Members are most worried about the cost of complying with the proposed Telecommunications (Consumer Protections) Industry Standard 2026. The IAA says the draft points to major billing and IT changes but does not say what implementation period will apply, while changes of that scale are expected to take up to 12 months and probably longer. Clark said members feel stuck between two unworkable options: tier-1 providers have the scale to absorb new costs, but small ones do not. She added that small providers cannot simply recover the costs from customers, since bigger rivals are cutting prices and a price rise risks losing customers.

The IAA reports that some telcos are seriously considering exiting the market, because the rules assume every telco runs its own network. It says providers are also increasingly anxious about liability and heavy penalties for matters beyond their control. Clark said a provider with fewer than five staff is expected to change every part of its business at once and on short timeframes.

Clark was due to appear on Monday before the Senate Environment and Communications Legislation Committee's public hearing on the Online Safety Amendment (Digital Duty of Care) Bill 2026. She said the bill would impose online safety obligations on ISPs even though, as access providers, they have less control over content shared across their networks. The IAA's submission recommends taking internet carriage services out of the framework's definition of online services, and criticises the consultation on the exposure draft earlier in 2026.

The letter asks for coordinated reform through a regulatory grid that weighs the cumulative effect of new obligations before they are introduced. It also seeks consultation with small providers as well as major telcos, consolidation of overlapping consumer protection rules, and obligations scaled to each provider's size, services and responsibilities. It further requests approved templates, training resources and realistic implementation timeframes.