Report labels current telecommunications approach outdated

In a new draft report, the Productivity Commission has recommended a modernised approach to universal telecommunications services in Australia.

It points out that the telecommunications environment is evolving, and current arrangements are becoming outdated.

“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,” said Commissioner Paul Lindwall.

The current Telecommunications Universal Service Obligation (TUSO), which ensures all Australians may receive fixed-line voice services, requires a more targeted approach that recognises the substantial public investment in the National Broadband Network (NBN), expected to be fully rolled out by 2020.

“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,” said Lindwall.

The commission is proposing that the TUSO be replaced with a universal service policy objective to provide a baseline or minimum broadband (including voice) service to all premises in Australia, once NBN infrastructure is fully rolled out.

For vulnerable members of the community who may have difficulties accessing NBN services or a mobile phone service, the commission is urging the government to adopt a policy approach that closely targets their particular needs instead of providing a blanket ‘one-size-fits-all’ solution, as is currently the case under the TUSO.

The Productivity Commission received the terms of reference from the government in April 2016 and will present its final report on this inquiry to the government in April 2017.

Public hearings for this inquiry will be held in January and February of 2017 in Sydney, Melbourne, Launceston, Dubbo, Cairns and Port Augusta. More details on hearings can be found on the Productivity Commission website.

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