scholarly journals Revisiting the Universal Service Obligation Scheme

2021 ◽  
Vol 9 (3) ◽  
pp. 194-215
Author(s):  
Simon Moorhead

In this Journal’s tradition of revisiting past papers which have relevance to today’s events, this article reminds us of the value of the paper “Better telecommunications services for all Australians.” (2015) by Reg Coutts. This paper makes five interrelated recommendations to replace the current Universal Service Obligation (USO) policy in Australia, given the NBN rollout and customer preference for mobile services anywhere anytime.  Some of its recommendations were arguably taken up by the Productivity Commission’s Public Inquiry into the USO in 2016-17, and implemented by the Australian Government in the form of a new Universal Service Guarantee.

2015 ◽  
Vol 3 (4) ◽  
pp. 89-107
Author(s):  
Reg Coutts

The Universal Service Obligation (USO) scheme we have in place in Australia in 2015 was put in place over 25 years ago when the world was very different than what it is today. The paper documents how the current USO entrenches an annual subsidy of some $300 to Telstra to provide a standard telephone service over an aging copper infrastructure to regional and remote premises across Australia. The current expensive USO scheme is inadequate for people in remote and regional Australia and in the light of the NBN roll out and the demand for mobile services is in urgent need of review. The paper reviews the approach taken to providing high cost telecommunications services in rural areas both developed and developing economies across the world and draws lessons for devising a basis for a way forward. Given the now bipartisan acceptance of the rural and remote component of the NBN roll out and drawing on these lessons, now is the opportunity to scrap the current USO scheme and establish a Universal Service Fund (USF) where the NBN is the Universal Infrastructure wholesale provider with alternative retailers. The paper supports five practical interrelated recommendations that diverts current USO funding to ensure broadband and mobile services extension in rural and remote Australia as well as reimagining future payphones around public WiFi and rural community innovation.


Author(s):  
Reg Coutts

The Universal Service Obligation (USO) scheme we have in place in Australia in 2015 was put in place over 25 years ago when the world was very different than what it is today. The paper documents how the current USO entrenches an annual subsidy of some $300 to Telstra to provide a standard telephone service over an aging copper infrastructure to regional and remote premises across Australia. The current expensive USO scheme is inadequate for people in remote and regional Australia and in the light of the NBN roll out and the demand for mobile services is in urgent need of review. The paper reviews the approach taken to providing high cost telecommunications services in rural areas both developed and developing economies across the world and draws lessons for devising a basis for a way forward. Given the now bipartisan acceptance of the rural and remote component of the NBN roll out and drawing on these lessons, now is the opportunity to scrap the current USO scheme and establish a Universal Service Fund (USF) where the NBN is the Universal Infrastructure wholesale provider with alternative retailers. The paper supports five practical interrelated recommendations that diverts current USO funding to ensure broadband and mobile services extension in rural and remote Australia as well as reimagining future payphones around public WiFi and rural community innovation.


2000 ◽  
Vol 96 (1) ◽  
pp. 69-81
Author(s):  
Michael Bourk

In Australia, the Universal Service Obligation (USO) operates as a legislative mechanism that guarantees the right of all Australians to access a standard telephone service wherever they reside. In 1997, special provisions for people with severe hearing impairment were added to telecommunication legislation. The Telecommunications Act 1997 included a specific reference to teletypewriters (TTYs), including them as an addition to the definition of the Universal Service Obligation (USO) as the result of the outcome from a public inquiry held in 1995. The inquiry, subsequently referred to as Scott v. Telstra, is a case study illustrating the collision of two separate pieces of federal legislation and the paradigms that formed them. Furthermore, both the inquiry and subsequent revision of definitions of a standard telephone service illustrate the complexity of planning telecommunication policy for equitable social outcomes. Specifically, further questions are raised surrounding the role of universal service in changing technological and competitive environments.


2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Lukasz Grzybowski ◽  
Julienne Liang ◽  
Christine Zulehner

Abstract In this paper, we analyze how fixed-mobile (quadruple-play) bundling impacts the decision of consumers to churn telecommunications services. We use a database from an European operator of fixed and mobile telecommunications services which includes information about 9.6 million fixed broadband subscribers and 14.2 million mobile subscribers between March 2014 and February 2015. These data is combined with socio-demographic characteristics from each municipality in this country. We find that consumers who bundle fixed and mobile services from the same provider are less likely to churn. Without fixed-mobile bundling the annual churn of fixed broadband consumers would increase from 8.4 to 9.2%. Furthermore, the consumer churn in the mobile market would increase from 11.5 to 13.1%. We conclude that in the current competitive environment in the country considered, bundling has a moderate impact on consumer retention on both fixed and mobile networks.


Author(s):  
John De Ridder ◽  
Robin Eckermann

Rural and remote areas will continue to struggle to keep up with urban telecommunications despite the progress that has been made with initiatives such as the Mobile Black Spot Program (MBSP) and the NBN fixed wireless and satellite. But, now a more radical approach is needed as we consider updating the Universal Service Obligation, public safety network options and mobile roaming. Instead of more expensive small gains at the margin, or a counterproductive roaming arrangements, we should take a large step forward by having the Commonwealth, States and MNOs work together.


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