As connected and autonomous vehicle (CAV) technologies continue to advance, governments across Australia are beginning to reshape infrastructure policy to support CAV integration into broader transport systems. Many states have also recently conducted or are progressing CAV and intelligent transport system (ITS) trials, including in New South Wales, Queensland, South Australia, Victoria and Western Australia.
Despite supportive policy positions, legal and regulatory complexities remain for CAV providers and distributors—refer to our previous article (here) for an overview of the key considerations. In this note, we delve deeper into the telecommunications and radiocommunications facilities that enable CAVs and key areas ripe for legal reform.
Key takeaways
- CAV operators can benefit from the ITS class licence issued by ACMA, which allows use of radiocommunications transmitters for ITS purposes. Note that ACMA is monitoring the appropriateness of the current ITS class licence pending developments in Europe.
- CAV manufacturers and distributors may sometimes be captured under the Telecommunications Act 1997 (Cth) as a 'carriage service provider', triggering significant obligations under various laws. While government consultation in late 2023 acknowledged that the telecommunications framework may not be suitable for the CAV context, no reforms have been announced and regulatory uncertainty persists.
Overview of connected and autonomous features
Connected vehicles and autonomous vehicles are two distinct, but increasingly integrated, technologies.
Connected vehicles
Connected vehicles share data through mobile network infrastructure or wireless communications for a range of purposes, including:
- public communication with other vehicles, infrastructure and others through an interconnected 'Co-operative Intelligent Transport System' (C-ITS). Such communication enables features like collision avoidance and hazard warnings;
- private telematics for fleet management, predictive maintenance, safety monitoring and various other purposes;
- in-vehicle infotainment systems; and
- emergency calling services.
These communications rely on a mix of embedded mobile broadband connectivity, direct short-range communication or cellular vehicle-to-everything technologies.
Autonomous vehicles
Autonomous vehicles perform some or all driving functions without human input.
Autonomous vehicles rely on onboard cameras, sensors and edge computing to interpret and navigate physical surroundings. Connectivity is essential for real-time data processing, situational awareness, traffic mapping and broader system efficiency.
We set out below a high-level summary of two key enablers of CAV connectivity: short-range communication technologies for C-ITS and access to mobile broadband networks.
Short-range communication technologies (DSRC and V2X)
Short-range communication is central to the operation of C-ITS, enabling direct, immediate and reliable communication between vehicles, infrastructure and other road users. There are two key competing technologies:
- direct short-range communication (DSRC), which uses existing Wi-Fi technology to directly communicate between onboard vehicle units and roadside units; and
- cellular vehicle-to-everything (V2X), which is a newer technology that supports both direct communication between onboard vehicle units and roadside units as well as longer-range communication using mobile broadband networks.
The choice between DSRC and V2X is a foundational consideration for national C-ITS planning. As each technology offers distinct advantages and limitations, and they are not interoperable, it will be important to adopt a unified approach across states and territories.
To support this, Commonwealth, state and territory infrastructure and transport ministers have endorsed the 'Principles for a National Approach to Co-operative Intelligence Transport Systems (C-ITS) in Australia' (2024).1 These principles aim to promote a seamless experience for road users across Australia and confidence for industry investment.
While V2X appears to be emerging as the preferred standard in several international markets (including in the US and China), Australia is yet to determine a national approach.
Spectrum allocation
Both DSRC and V2X use the 5.9 GHz radiofrequency band in Australia for short-range communication, which is reserved exclusively for ITS communication. A dedicated frequency band helps to ensure network availability, reliability and low latency required for real-time ITS communications (particularly for safety purposes). The same frequency band is also used for ITS communication in the EU, US, China and other regions.
Use of the radiofrequency spectrum in Australia is regulated and managed by the Australian Communications and Media Authority (ACMA). Under the ITS class licence issued by ACMA2, CAV providers are permitted to operate DSRC and V2X technologies without applying for individual licences or paying fees (provided that they comply with European C-ITS standards and ACMA's technical equipment standards).
While ACMA has noted that the current ITS class licence is fit-for-purpose, it has flagged ITS spectrum management as an ongoing priority area and is actively monitoring developments in Europe.3
Access to mobile broadband networks
Mobile broadband networks underpin longer range vehicle-to-network and vehicle-to-cloud communication in CAVs. Emerging 5G technology (with ultra-low latency and higher bandwidth and throughput capacity) is anticipated to support higher densities of CAVs and advanced capabilities. However, the current availability and quality of 5G networks varies significantly across Australia, which is likely to impact the rollout and performance of CAV services nationwide.
From a legal perspective, mobile broadband connection in CAVs raises key questions about the application of the Telecommunications Act 1997 (Cth) (Telecommunications Act) to CAV providers. We explore this below.
CAVs and the Telecommunications Act – a regulatory mismatch?
The Telecommunications Act regulates several key participants in the telecommunications industry, including 'carriage service providers' (CSPs)—ie entities that supply telecommunications services over regulated networks and infrastructure.
While the Telecommunications Act was not designed with modern telecommunications in mind, the statutory definition of a CSP is broad and covers intermediary entities involved in arranging the supply of telecommunications services. As such, depending on the specific connectivity arrangements in place, CAV providers or distributors can sometimes be captured as CSPs—thereby triggering significant obligations under the Telecommunications Act and various other legislation (many of which are unsuitable or incapable of being applied to the CAV context).
In late 2023, the Department of Infrastructure, Transport, Regional Development, Communications and the Arts (theDepartment) consulted on the impact of telecommunications laws to vehicle manufacturers and after-market providers of connected vehicles.4 Several stakeholders, including distributors of connected vehicles and related products, have argued that they should not be subject to CSP obligations—in particular, because they believe that they were not intended to be captured by the framework and lack the resources to comply. The Department's initial view is that connected vehicle technology does not meet traditional views of 'carriage services' under the Telecommunications Act. However, it considers that various network safeguards and consumer obligations should continue to apply to the sector (although it is an open question as to which entity in the overall CAV supply chain should bear responsibility for such obligations). Since the consultation, no further reforms have been announced or progressed.
In the absence of further regulatory guidance or reform activity, CAV providers and distributors remain potentially subject to regulatory requirements for CSPs in some circumstances, with limited clarity on how such requirements apply in practice. Managing this uncertainty requires a proactive and strategic approach to structuring connectivity and service arrangements. As the legal landscape continues to evolve, informed decision-making will be key to navigating compliance risks effectively.
Overview of CSP obligations
CSPs are subject to various obligations arising under the Telecommunications Act and various other laws, instruments and industry codes. These obligations cover (amongst others):
- technical standards relating to telecommunications services;
- confidentiality and security obligations in respect of the content being transmitted and the telecommunications infrastructure;
- data collection and retention requirements;
- prohibitions against anti-competitive conduct and access requirements;
- consumer protection practices;
- assistance for law enforcement and national security purposes; and
- cyber incident notification.
Footnotes
2. Radiocommunications (Intelligent Transport Systems) Class Licence 2017.
3. https://www.acma.gov.au/five-year-spectrum-outlook.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
