Developing the Universal Service Guarantee

Transcription

1 Developing the Universal Service Guarantee 4 May 2018 Briefing for Australian Local Government Association Philip Mason USO Taskforce

2 Who we are Philip Mason Assistant Secretary USO Taskforce Pauline Sullivan First Assistant Secretary Market Reforms 1

3 Where are we now? Standard telephone service available on reasonable request across Australia Provision of payphones against specified parameters Services need to meet the needs of people with disabilities (consistent with DDA) Underpinned by Telecommunications (Consumer Protection and Service Standards) Act... Telecommunications USO Performance Agreement (TUSOPA) with Telstra 20 year term 2012 to 2032 Provide voice and payphone service as above Continue providing copper-based services where in place outside nbn s fixed line footprint (CCO) $230m p.a. for voice services, $40m p.a. for payphone services (excl. GST) Funded by industry and Commonwealth Little scope to unilaterally change Commonwealth program for community phones in remote Indigenous communities Construction of NBN to provide next-generation broadband nationally supporting legislation Mobile coverage to 99.4% of the population 2

4 Past reviews RTIRC Report (August 2015) Called into question the existing Universal Service Obligation (USO) and recommended the development of a new safeguard in the form of a Consumer Communication Standard for voice and data which would provide technology neutral standards in terms of availability, accessibility, affordability, performance and reliability PC Report (June 2017) Productivity Commission was asked to undertake an inquiry into the telecommunications USO to examine the role and relevance of these arrangements in an evolving market (April 2016) The Australian Government should wind up the telecommunications USO by 2020 in line with recommendations 9.1 and 9.2 (basically negotiate to exit TUSOPA with Telstra) and develop a new framework ANAO Report (September 2017) The TUSOPA supports the achievement of the stated USO policy objective of providing reasonable access to standard telephone services and payphones on an equitable basis to all Australians. however, key aspects of the TUSOPA do not reflect value for money principles. 3

5 Universal Service Guarantee On 20 December 2017, in response to the Productivity Commission s inquiry into the USO, the Government announced its plans to work to implement a new Universal Service Guarantee (USG) The USG will ensure that all Australians have access to both voice and broadband services, regardless of where they live, and better reflect changing consumer preferences and technologies Aim is to have the USG framework in place for completion of the NBN in 2020 The Government is taking a belt and braces approach Existing USO arrangements will remain until there are clear alternatives and they are implemented In regional and rural Australia, the current USO contract requires that Telstra maintain its copper network in order to provide premises with a phone service The USG will build on the Statutory Infrastructure Provider (SIP) legislation currently before Parliament to provide access to broadband and align with broader telecommunications reform work 4

6 USG requirements To move to the USG, the following requirements will need to be met: 1) Broadband services are available to 100 per cent of Australian premises, on request, following the completion of the NBN rollout in ) Voice services are available to 100 per cent of Australian premises, on request 3) Any proposed new service delivery arrangements are more cost effective than the existing Telstra USO contract (including any transitional costs) 4) A new consumer safeguards framework is in place following a review and associated public consultation process Services would be provided by the market in the first instance (leveraging NBN infrastructure, as well as other existing broadband and mobile networks) Where outcomes are inadequate or unavailable, options would be developed for targeted Government measures 5

7 USG drivers Better reflect changing customers preferences: greater use of data and broadband greater use of mobile falling use of fixed line voice and payphones Better leverage industry dynamics: significant Government investment in the NBN extensive private sector investment in mobile coverage and mobile competition growing interest in Internet of Things and smart technologies Address concerns about value for money under the existing Telstra contract Potentially free up funding for further investment in line with consumer preferences 6

8 Inter-related activities Telecommunications reform package in Parliament (SIP and RBS) ACCC wholesale service standards inquiry Consumer Safeguards Review Regional Telecommunications Independent Review Committee (RTIRC) 7

9 Next steps Significant work is required over the first-half of 2018 Identifying and costing alternative voice services (esp. in the NBN satellite footprint) Determining whether alternative services are more cost effective than current USO arrangements Exploring the role of payphones and developing alternatives based on community needs Undertaking the Consumer Safeguards Review The Government expects to provide an update on USG implementation later in 2018 The current USO contract runs until 2032, and any proposed changes will be subject to contractual renegotiations with Telstra Not formally seeking submissions but welcome input orally or in writing Available to meet stakeholders on a regular basis during this period to discuss their needs and issues We would also be happy to meet with members on an individual basis 8

10 Some key questions What levels of voice quality and reliability are acceptable? What are the preferences for mobile versus fixed lines? What other functionality is important and needs to be considered? Where are payphones needed? What are preferable options? What trade-offs are acceptable or desirable? What are the no-goes? How do the value propositions of different solutions stack up? How is the solution best delivered in practice? 9

11 Questions? Comments? Suggestions? DOCA contacts: Philip Mason ( ) Georgianna Duggan (# 7041) Margaret Lopez (#7070) 10