Telstra’s long-standing obligation to provide telephony services under the Universal Service Obligation (USO) might cease under a proposed “modernization” of the program.
The government initiated a consultation, recognizing that while Telstra holds most USO contracts for landline-based voice services, the majority of such services now operate through the National Broadband Network (NBN), with only a few still dependent on Telstra’s aging copper network.
As the NBN reaches approximately 97 percent of the population and mobile coverage extends to about 99.6 percent, coupled with emerging high-bandwidth services like Starlink, the government believes it’s time to revamp the USO.
No official confirmation has been provided on Telstra’s exit from the USO delivery role. Communications Minister Michelle Rowland stated that the government has not made any definitive decisions and will rely on received feedback for this crucial consultation.
The consultation, consisting of multiple phases, will include technical trials in 2024 to collect data on the capabilities of alternative services, according to the discussion paper.
In addition to the initial consultation, the government will seek advice from the Regional Telecommunications Review over the following year. Subsequently, consultations on USO funding arrangements are scheduled from February to April 2024, with a report on stakeholder feedback expected by July 2024.
The USO funding consultation will also encompass a review of the Regional Broadband Scheme.
Minister Rowland emphasized the government’s aim to ensure that the USO aligns with modern needs, accommodating new technologies such as quality fiber connections and satellite services.
