Telcos want clarity on data retention costs

Representatives of Australia's telecom industry have called on the government to make clear how much it will contribute to the cost of complying with the proposed new mandatory data retention Bill.

Telstra CEO David Thodey, Optus Chairman Paul O'Sullivan and Vodafone Hutchison Australia CEO Inaki Berroeta have joined 13 other industry executives in co-signing an open letter calling for clarity on this aspect of the policy.

The letter asks the government to estimate the proportion of the cost that will be picked up by the government, defined as a percentage of the final determined cost.

It also seeks clarity on the methodology proposed to apportion the government's contribution, noting that this will influence the extent to which smaller operators might be disproportionately affected by the policy.

Estimates provided by government consultants indicate that the cost to the industry of implementing the scheme could exceed $300 million. The government has variously indicated it will make a "reasonable" or "substantial" contribution to these costs, but has not gone into detail.

The letter was also signed by the CEOs of M2, iiNet, Macquarie Telecom, Cloud Plus, Inabox, Next Telecom, Cinenet, Albury Local Internet, Duxtel, Cirrus Communications and TRUECOM, and representatives from Pivotel Group and Verizon Communications.

The government has proposed data retention legislation that would require Australian telecom operators to store metadata for access by law enforcement organisations and regulators for a period of up to two years.

But the proposed legislation has attracted opposition from internet groups. The Internet Society of Australia recently warned that the current wording of the Bill could threaten the open nature of the internet and Australia's long-term economic prospects.

Image courtesy Bill Brooks under CC