Conroy kicks off USO reforms with discussion paper

Stuart Corner
Sunday, 24 October 2010 15:57

IT Policy - Regulation

Communications minister, senator Stephen Conroy, has released a discussion paper on proposals for the Universal Service Obligation reforms that will be needed if the agreement with Telstra over its role in the NBN is consummated.

The heads of agreement signed between NBN Co and Telstra on 20 June included provision for a new institutional, regulatory and funding framework for the delivery of the Universal Service Obligation and other public interest services.

The reforms include establishing a new entity, USO Co, which will function from July 2012 to provide funding for:
- ensuring all Australians have reasonable access to a standard telephone service;
- ensuring that payphones are reasonably accessible to all Australians;
- emergency call handling;
- migration of voice-only customers to a fibre-based service as Telstra's copper exchanges are decommissioned, and
- the development of technological solutions for continuity of public interest services (such as public alarm systems and traffic lights).

The Commonwealth Government has agreed to provide funding for USO Co of $50 million for each of the financial years 2012-13 and 2013-14, and $100 million annually thereafter.

The residual costs incurred by USO Co will be met through an industry levy scheme on telecommunications service providers that will replace the current Universal Service Obligation and National Relay Service levy schemes.

The Department says: "The discussion paper raises a number of matters on which feedback is sought, including the delivery of the Universal Service Obligation and public interest services, and possible funding and institutional arrangements for delivering outcomes." Submissions are due by 5 November.