Australia may revamp telecoms USO

Australia’s Productivity Commission has called for the current telecommunications universal service obligation (TUSO) scheme to be scrapped and replaced with a more future-proof regime.

Currently the government has a deal to provide former state-owned operator and fixed line market leader Telstra $300 million per year to ensure fixed voice and payphone services are available to every Australian.

Nearly $3 billion of the 20-year TUSO contract is provided by tax payers, with the remaining $3 billion provided by Telstra and rival operators. But these rivals have often complained about issues including a lack of transparency from Telstra over how it is spending the money.

As with all other markets, fixed voice services have also been declining in popularity as mobile adoption reaches a saturation point.

In a new report, recommended that the current TUSO scheme be replaced with a version that seeks to ensure all Australians have access to a baseline broadband connection including a voice service.

The responsibility for meeting TUSO obligations would also shift from Telstra to the state-owned national broadband network (NBN), which is expected to be fully rolled out by 2020.

“In a digital age, the current obligation — requiring Telstra to provide all Australians with access to basic fixed line telephones and payphones — is anachronistic and needs to change,” commissioner Paul Lindwall said.

“Once rolled out to all Australians, the NBN will be the foundation on which a future broadband based telecommunications universal service policy should be built. A completed NBN, which provides broadband and voice services to all Australians, will make the current TUSO obsolete.”

But the commission has acknowledged that there could be difficulties ensuring a basic broadband service is provided in areas only due to be served by the wireless and satellite component of the NBN.