IS the dial tone on your landline worth $300 million a year?
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That’s the question the Productivity Commission (PC) is charged with answering.
The PC hosted a forum in Dubbo on Monday to seek input from the public on its inquiry into the telecommunication universal service obligation (TUSO).
The TUSO was legislated in the 1990s (following the deregulation of the telecommunications market) to ensure every Australian had equitable access to a standard telephone service, including pay phones. To fulfill this obligation each year the government pays Telstra $253m to supply fixed line telephones and $44m for public payphones.
Given the reduced reliance on landlines in recent years due to the proliferation of mobile phones and internet which allows voice calls, the necessity (and cost) of Telstra’s TUSO contract is under scrutiny.
The PC released a draft report on the matter in December. While it recognised all Australians should have baseline access to broadband, it posited the TUSO was no longer fit for purpose and recommended it be phased our as soon as practical – meaning your landline service may soon be cut off.
Yesterday the Country Women’s Association, the Isolated Children’s Parents Association, farmers, small business owners and exporters told the commission in no uncertain terms landlines mustn’t be ripped from walls until mobile and internet services in the bush improve.
Mullaley small business owner and telecommunications advocate Geraldine McKay told the forum her mobile and broadband service could not be relied upon to perform critical business transactions, let alone save lives if necessary. Indeed, Yeoval district farmer and volunteer fire fighter Trevor Coady told the commission the lack of connectivity interfered with his brigade’s best efforts to attend emergencies.
Cherry exporters Barbara and Brent Bannister submitted it was government’s obligation to expand the TUSO to include data.
“There’s no reason businesses in the bush should be held back,” Mr Bannister said.
Regional Development Australia Central West executive officer Peter McMillan tens of thousands in regional NSW had no reliable alternative to a landline.
“The PC is working on the figure 90,000 Australians live in mobile blackspots but we estimate that to be much higher,” Mr McMillan said.
“It’s one thing to look on a map where the coverage areas are but it’s another to be on the ground and understand how strong that connection is. Sometimes you might have one bar of reception, other times you have four. ”
Mr McMillan emphasised voice over internet protocol (VOIP) wasn’t an fair replacement to landlines. Indeed, the National Broadband Network itself doesn’t recommend using the Sky Muster satellite to make emergency calls via VOIP.
The inquiry’s commissioner, Paul Lindwall, said he came to Dubbo keen to learn what the the “transition” process would look like. He found what he was looking for.
“I wanted to know how long it will be until regional and rural Australians can be confident they can do without their fixed landline and payphones,” he said.
“I’ve come away with a good degree of skepticism on the effectiveness of the Sky Muster satellite and I’ve picked up on the frustrations of how well the NBN has been rolled out on the ground.”
Public hearings will be held throughout February in Sydney, Cairns, Launceston and Port Augusta.
Individuals, organisations and businesses who are unable to participate in person at the hearings are welcome to present evidence via teleconference at the Melbourne hearing on February 7 and 8.