Question Time Response - Universal Service Obligation expansion

Question - Federal Member for Mayo - Rebecca Sharkie MP

My Question is to the Minister for Communications. 90 per cent of Australians have a smart phone. Will the Government expand the Universal Service Obligation to the mobile phone network in the regions, and, if not, why not?

Answer - Minister for Communications, Michelle Rowland MP

Thank you, Mr Speaker. And I thank the Member for her question and I appreciate the advocacy she has provided for her constituents in her constructive engagement with me on a variety of communications matters across a portfolio. 

Universal Service Obligation; Telstra is designated as the universal service provider. 

Basically, this is a requirement that has not changed under the current regime since it was put in place. It basically applies to landline services and a pretty basic data service. The intention of the National Broadband Network, when it was conceived by Labor, was to ensure not only that we had broadband capacity across Australia, but that we had a wholesale-only access network vertically integrated that would provide competition into the regions, and this is where it matters. 

The Member is very right that there is a complete lack of flexibility when it comes to the Universal Service Obligation and that is why, in 2023, I announced that this Government would undertake a full consultation into how reform could be undertaken here, and how it could best benefit, in particular, those living in regional Australia.

And I also pay credit to the Member for Kennedy - he was been a staunch advocate for reform in this area. Clearly, that needs to be changed. This has been strongly endorsed by every stakeholder in the area, be it from the National Farmers’ Federation, to ACCAN, to the industry themselves. So it is encouraging.

This is an area of long-overdue reform and no reform happened under the previous government for a decade, but, despite that, we have not only undertaken that consultation but considered how it should be funded, and there is a variety of ways it could happen. Telstra has the contract as a universal service provider under those arrangements which happen when the NBN was conceived. They are due to expire - not in the immediate term - but in future years, not a long way away. So, we need to determine out what that is going to look like. The Government has been working diligently in this area and we will have more to say very soon. 

But I will make three points: firstly, this is an area where reform was absolutely left lacking under the previous government. Secondly, this is an area where regional Australia has missed out because of that lack of reform. And, thirdly, that lack of reform flies in the face of the fact that Australians are early-adopters and want the best technology and connectivity.

What I can assure the Member is that Labor will be reforming that area, and I look forward to engaging with the Member.