086/05
28 July 2005

Telecommunications safeguards to remain

Important telecommunications consumer safeguards built by the Howard Government, including the Universal Service Obligation, will continue to deliver telecommunications services to those who need them, Minister for Communications, Information Technology and the Arts, Senator Helen Coonan, said today.

The Howard Government is committed to maintaining important consumer safeguards such as the USO which requires the telecommunications industry to ensure all Australians, regardless of where they live, have access to a standard telephone service and payphones.

It is an important component of the Australian Government’s consumer protection arrangements.

“The USO is supported by other safeguards including the Customer Service Guarantee, the Telecommunications Industry Ombudsman, the Network Reliability Framework, and price control arrangements,” Senator Coonan said.

“These safeguards were built by this Government and they will remain regardless of who owns Telstra.

“The Government reviewed the USO and the Customer Service Guarantee last year, including the level of subsidies paid by other telecommunications providers to Telstra, to deliver an adequate level of service in rural and regional Australia.

“We reaffirmed our commitment to maintaining the USO safeguards following the review and during the election last year. Put simply we do not intend to change or water down the broad legislative framework governing the USO including the current USO costing and funding arrangements.”

Telstra is currently the only provider of USO services in Australia and receives a subsidy from all licensed telecommunications carriers for doing so. The level of subsidies paid by other providers to Telstra is set independently by the regulator –the Australian Communications and Media Authority (ACMA).

The baseline USO subsidies are: