The Federal Government says it will give out $128.4 million in grants to assist the telecommunications industry with the costs of meeting new data retention obligations.

It is a measure to get more telcos on board with the requirement to retain users’ data for a period of two years, something consumer group Internet Australia says will spell the end of many small providers.

The Data Retention Industry Grants Program consists of a single funding round open to telecommunications service providers who have data retention obligations, with applications open now and closing on Tuesday February 23.

“Assisting industry with the implementation of the data retention obligations remains a key priority for the Government,” deputy Prime Minister Warren Truss said in a statement announcing the grants.

“Metadata is used in nearly every counter-terrorism, counter-espionage and organised and major crime investigation. It is also essential for the investigation of child abuse and child pornography offences, which are frequently carried out online.”

More details for service providers are available here.