17 June 2004
88/04

KEY TELECOMMUNICATIONS CONSUMER SAFEGUARDS WORKING

The Universal Service Obligation (USO) and Customer Service Guarantee (CSG) are operating effectively as key safeguards for Australian telecommunications consumers, according to a recent review.

The review into the USO and CSG, tabled in the Federal Parliament, was undertaken by the Department of Communications, Information Technology and the Arts (DCITA) in response to recommendations from the report of the Regional Telecommunications Inquiry.

This review, together with the Australian Communications Authority's (ACA's) review of payphone policy, released on 31 March 2004, also satisfies the requirements of section 159A of the Telecommunications (Consumer Protection and Service Standards) Act 1999.

Under the USO, Telstra, as universal service provider, must ensure that standard telephone service and payphones are reasonably accessible to all people in Australia wherever they live or do business.

The CSG helps to safeguard residential and small business consumers against poor service from telephone companies by encouraging improvements to timeliness with service connection, fault repair and service appointments.

Although the report shows these safeguards overall are meeting legislative objectives, the report has identified some problems with the way the current subsidy setting arrangements for the USO have operated in the past.

At this stage, the Government does not intend to change the broad legislative framework, but it will consider ways to respond to these concerns.

Consistent with the Telecommunications (Consumer Protection and Service Standards) Act 1999, and in order to provide more certainty and encourage investment in the telecommunications market, I will seek advice from the ACA on subsidies that will meet the objectives of the Act in a way that also addresses some of the historic concerns with USO subsidy setting.

The Government will consider other issues raised in the report and will respond in due course.

The Review of the Operation of the Universal Service Obligation and the Customer Service Guarantee is available from the Publications link on the telecommunications home page at www.dcita.gov.au