Telstra, Optus and Vodafone have together been apportioned about 65% of the funds allocated for companies to implement the data retention scheme that the government voted into law more than a year ago.
Telstra was allotted $39.9 million, Optus $28.8 million and Vodafone $14.8 million.
The total amount allocated for the scheme by the attorney-general's office is $128.4 million.
This is a much smaller sum than the $188.8 million which was the lowest amount estimated by PriceWaterhouseCoopers as being necessary for implementing the scheme.
{loadposition sam08}PwC was engaged by the government to make an estimate. The high end of the amount estimated by the accounting firm was $319.1 million.
The data retention bill was introduced in October 2014 and requires telcos to keep a limited set of metadata for two years. The bill was passed on 26 March 2015.
A media release from the attorney-general's office said 180 service providers would receive support, with most to get 80% of their implementation costs. All eligible small and medium businesses will receive a minimum contribution of 80% towards implementation costs.
Service providers will receive 50% of their grant when they sign a funding agreement with the balance to be paid once reporting requirements are met.
Reacting to the announcement, Internet Australia chief executive Laurie Patton said the inordinate delay had left ISPs to bear the cost of capital equipment without knowing what they would get.
"This has caused considerable unnecessary stress to our ISP members. It compounds a litany of issues with this legislation that we have consistently maintained is fundamentally flawed," Patton said.
He said IA supported the Communications Alliance in its call for the government to exercise "regulatory restraint" if some ISPs were unable to meet the requirements of the data retention regime by the deadline of April 2017.
"Our view is that the government needs to be cognisant of the fact that its delay in providing funding has compounded the difficulty some ISP’s have faced in becoming compliant," Patton said.
He said the amount provided fell well short of the estimates made by PwC.
"What’s not covered is the significant operational expenses involved in complying with the scheme. So apart from having to cough up 20% of their upfront costs ISPs will be out of pocket on an ongoing basis. As we have previously pointed out, it is inevitable that the costs imposed on the industry by the government will be passed on to consumers."