Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Hansard source

I thank Senator Sterle for his question. The government announced yesterday that it would progress significant public policy reforms. As the NBN is rolled out, Telstra will no longer be a vertically integrated owner of a fixed line network. In light of this transition to a new industry structure, we need a new universal service framework to improve protections of essential communication services. Therefore, a new entity, USO Co., will take responsibility for the delivery of the universal service obligation. From July 2012 USO Co. will assume responsibility for most of Telstra’s universal service obligations: for the delivery of the standard telephone services, payphones and emergency call handling. For the first time, the Commonwealth will provide funding to support the delivery of the USO. This funding will build to $100 million per year by 2014.

This approach has been endorsed by industry. Rosemary Sinclair of the Australian Telecommunications Users Group said establishing USO Co. with explicit funding as an independent organisation is ‘a better approach’. The general manager of iiNet’s regulatory affairs, Steve Dalby, described it as ‘very positive for the industry’. The government will also provide $100 million to assist with retraining and redeployment of Telstra staff that will be affected by this historic transition from the copper age to the fibre future. As ACTU secretary Jeff Lawrence said: ‘This deal is a major step forward.’ (Time expired)