Telecommunications universal service obligation
Telecommunications universal service obligation
Draft report
This draft report was released on 6 December 2016. You were invited to examine the draft report and to make written submissions by 20 January 2017.
This inquiry is complete. The final report was handed to the Australian Government on 28 April 2017 and publicly released on 19 June 2017.
The release of the final report by the Government is the final step in the process.
Please note: This draft report is for research purposes only. For final outcomes of this inquiry refer to the inquiry report.
Download the overview
Overview - Telecommunications Universal Service Obligation - Draft report (PDF - 521 Kb)
Overview - Telecommunications Universal Service Obligation - Draft report (Word/Zip - 307 Kb)
Download the draft report
Telecommunications Universal Service Obligation - Draft report (PDF - 3179 Kb)
Telecommunications Universal Service Obligation - Draft report (Word/Zip - 3709 Kb)
Infographic: Telecommunications - What's happened in the last decade (2005 to 2015)?
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Telecommunications (Text version of infographic)
What's happened in the last decade (2005 to 2015)?
- Mobile voice calls grew by 270%
- Fixed voice calls fell by 79%
- 500% increase in SMS/MMS
- 29% of adult Australians have a mobile phone but no fixed phone
- The price of an average mobile phone service fell by 26%
- Mobile voice calls grew by 270%
- 70% of households have a fixed phone
- 94% of adult Australians have a mobile phone
- More than 50% of annual growth in internet data traffic
- 86% of adults connect to the internet with more than one device
- 26% connect with more than four devices
- The price of an average mobile phone service fell by 26%
- The price of an average fixed phone service fell by 39%.
Read the draft report and make a submission.
- Rapid developments in telecommunications technology are transforming the ways in which people live, work and play. These are also profoundly affecting how telecommunications service providers run their businesses.
- In a digital age, the voice based telecommunications universal service obligation (TUSO) — costed at $3 billion in net present value terms over twenty years and introduced when telecommunications consisted of basic telephones and payphones — is anachronistic and needs to change. People's preferences for ubiquitous connectivity, their seemingly insatiable appetite for data and the high value of digital data to businesses and governments generally provide a strong case to revise Australia's universal service policies.
- The sizable public investment in National Broadband Network (NBN) infrastructure is planned to provide universal access to high speed broadband services to all premises across Australia by 2020 — at a quality that is far superior to what is currently available. By design, the pricing strategy adopted by NBN Co Limited will see wholesale prices capped across all its technology platforms and across all locations, thus significantly narrowing the digital divide across rural, regional and urban Australia.
- The existence of the NBN means that the objective of universal service can be reframed to provide a baseline (or minimum) broadband service to all premises in Australia, having regard to its accessibility and affordability, once NBN infrastructure is fully rolled out. This encapsulates access to both the internet and voice services as the internet will increasingly be the medium for voice communication.
- While NBN infrastructure will deliver a high quality voice service over fixed line and fixed wireless networks, there is a question about the adequacy of NBN services as a baseline service in pockets of the satellite footprint, particularly given the high dependency on the network in areas where there is no mobile coverage (affecting up to 90 000 premises).
- To the extent that there are any remaining availability, accessibility or affordability gaps once the NBN rollout is complete, current trends and existing policy settings suggest that these are likely to be small and concentrated, and amenable to specific social programs rather than large scale government interventions such as the TUSO.
- Any further government intervention should harness markets while closely targeting particular user needs. Government intervention should also reflect the complementary role of mobile services. In this context, the Mobile Black Spot Programme should be recast to enhance its cost effectiveness.
- To avoid adverse impacts on competition, the costing of government programs to address any gaps should be made transparent and subject to competitive tendering processes where feasible. The narrowly targeted scope and small scale of the programs under the Commission's proposals tips the balance towards funding from general government revenue as opposed to an industry levy.
- Transitioning to a new framework for universal service is likely to be complex. The long term contract that the Government has with Telstra and the surrounding legislative architecture present key hurdles that will need to be carefully addressed to ensure that the benefits of timely reform outweigh the costs of unravelling existing arrangements.
- As part of this process, the Government should proceed with its planned review of telecommunications consumer safeguards as a matter of priority. It should also address any consequential amendments to the existing regulatory framework relating to universal service provision.
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Printed copies of this report can be purchased from Canprint Communications.
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Printed copies of this report can be purchased from Canprint Communications.
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Printed copies of this report can be purchased from Canprint Communications.
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Printed copies of this report can be purchased from Canprint Communications.
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Printed copies of this report can be purchased from Canprint Communications.
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Printed copies of this report can be purchased from Canprint Communications.
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Printed copies of this report can be purchased from Canprint Communications.
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Printed copies of this report can be purchased from Canprint Communications.