Rebekha Sharkie (Mayo, Centre Alliance) Share this | Link to this | Hansard source

My question is to the Minister for Communications. Just 1.6 per cent of Australians solely use a landline, while nearly 90 per cent have a smart phone. Will the government expand the Universal Service Obligation to the mobile phone network in the regions and, if not, why not?

Michelle Rowland (Greenway, Australian Labor Party, Minister for Communications) Share this | Link to this | Hansard source

I thank the member for her question. I appreciate throughout this term the advocacy that she has provided for her constituents with her constructive engagement with me on a variety of communications matter across the portfolio. For the benefit of members, USO stands for 'Universal Service Obligation', and Telstra is designated as the universal service provider. Basically, this is a requirement that has not changed since it was put in place. It applies to landline services and, taken on a reading, a pretty basic data service. The intention of the National Broadband Network, when it was conceived by Labor, was to ensure that we had not only broadband capacity across Australia but a wholesale-only access network vertically integrated that would provide competition in the regions. This is where it matters.

The member is right that there is a complete lack of flexibility when it comes to the Universal Service Obligation. That is why in 2023 I announced that this government would undertake a full consultation into how a reform could be undertaken here and how it could best benefit, in particular, those living in regional Australia. I also pay tribute to the member for Kennedy, who has been a staunch advocate for reform in this area. We have undertaken that consultation on the scope of services, and clearly there needs to be change. This has been strongly endorsed by every stakeholder in the area, be it the National Farmers Federation, ACEM or the industry themselves. That is encouraging, I would say to the member for Mayo and everyone in this place. But this is an area long overdue for reform. No reform happened under the previous government for a decade. Despite that, we have undertaken a consultation not only on the scope of services but how it should be funded. There are a variety of ways in which that could happen.

Telstra, as you know, has the contract as the universal service provider, under those arrangements which happened when the NBN was conceived. They are due to expire not in the immediate term, but in future years—though not a long way away. So we need to determine now what that is going to look like. I can say to the member that the government has been working diligently in this area. We will have more to say very soon.

But I'll make three very good points. Firstly, this is an area where reform was absolutely left lacking under the previous government. Secondly, this is an area where regional Australia has missed out, because of that lack of reform. Thirdly, that lack of reform flies in the face of the fact that Australians have always been early adopters. They want the best technology. They want the best connectivity. I can assure the honourable member that Labor will be reforming this area, and I look forward to engaging with the member as we implement those reforms.