Paul Fletcher (Bradfield, Liberal Party) Share this | Link to this | Hansard source

asked the Minister representing the Minister for Broadband, Communications and the Digital Economy, in writing, on 21 March 2011:

In respect of the new arrangements that are proposed for the Universal Service Obligation,

(a) is it a fact that customers outside the 93rd percentile will continue to receive the 'standard telephone service' (their entitlement under the universal service arrangement) over Telstra's copper network; if so, does this mean that the Telstra copper network will continue to operate in many rural and remote areas of the country (the 'residual rural network'),

(b) given that today the rural and remote part of the network is cross-subsidised by the metropolitan network, what are the implications of removing this cross subsidy for the cost of operating the residual rural network, and

(c) how will the (i) per customer cost of the residual rural network compare with that of today's national copper network, and (ii) cost of operation of the residual rural network be met.

Anthony Albanese (Grayndler, Australian Labor Party, Leader of the House) Share this | Link to this | Hansard source

The Minister for Broadband, Communications and the Digital Economy has provided the following answer to the honourable member's question:

(a) The Government's 20 June 2010 policy statement1 outlined a new institutional, regulatory and funding framework for the delivery of USO and other public interest services. This includes the establishment from 1 July 2012, of a new entity, provisionally called USO Co, which will take on responsibility for delivery of universal service outcomes and other telecommunications public interest services. As part of USO Co arrangements, customers outside NBN Co's fibre footprint that have access to Telstra's copper network will continue to be able to receive a standard telephone service over that network if they wish.

(b) Changes to Telstra's net costs of meeting the USO over its copper network outside NBN fibre areas is one of the considerations that are part of the contractual negotiations between it and the Commonwealth on the delivery of the USO.(c)    (i) Compared with the current costs of Telstra's copper network, it is anticipated that the per customer cost of Telstra's copper network will continue to vary over time subject to a number of factors including the network footprint and the number of services in operation. (ii) Under the proposed USO Agreement, Telstra will receive payments from USO Co that will go towards meeting the net costs of meeting the USO. As is currently the case, Telstra will also obtain payments from its customers for provision of USO services.

1 www.dbcde.gov.au/broadband/national_broadband_network/nbn_policy_statements#uso