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INDEPENDENT ASSESSMENT OF THE CURRENT AND FUTURE ADEQUACY OF TELECOMMUNICATIONS SERVICES

BACKGROUND

In September 2000 the independent Telecommunications Service Inquiry (TSI) concluded that Australians generally have adequate access to a range of high quality basic and advanced telecommunications services. However the TSI also concluded that a significant proportion of those who live and work in rural and remote Australia have concerns regarding key aspects of services which, at that stage, were not adequate.

In May 2001 the Government responded to the 17 recommendations of the TSI by committing to regulatory changes and $163 million of new funding programs. In April 2002 the Government announced a range of further enhancements to the telecommunications competition regime.

In its 2001 Federal election policy the Coalition stated that it would take no further steps toward the full sale of Telstra unless and until it was fully satisfied that services in regional, rural and remote Australia were adequate. It is therefore timely to conduct an independent assessment of progress toward the delivery of adequate telecommunications services to all Australians.

TERMS OF REFERENCE

The independent panel will report to the Minister for Communications, Information Technology and the Arts by 8 November 2002 on whether telecommunications services to regional, rural and remote areas of Australia are adequate and the arrangements that should be put in place to ensure that all Australians continue to share in the benefits of further service improvements and developments in technology. In conducting its assessment the panel will advise the Minister on:

1. The extent to which the Government's response to the Telecommunications Service Inquiry (TSI), other Government initiatives and further commercial developments have so far addressed the community concerns identified in the TSI Report, particularly with regard to:

  • the timely installation, repair and reliability of basic telephone services;

  • adequate mobile phone coverage at affordable prices; and
  • reliable access to the Internet, and whether ongoing delivery of the Government's response will meet the TSI concerns within a reasonable timeframe.

2. The performance of Telstra, as the primary Universal Service Provider, in meeting Customer Service Guarantee (CSG) standards on the timely installation, repair and reliability of basic telephone services in regional, rural and remote Australia, compared with its performance in metropolitan markets and with overseas carriers in reasonably equivalent markets.

3. Additional Government action that may be taken to remove impediments to the delivery of internet services at 64Kb/s or better and wireless-based technologies in regional, rural and remote Australia.

4. The current provision of legislated consumer safeguards including the Universal Service Obligation, the Customer Service Guarantee, untimed local calls and the Telecommunications Industry Ombudsman and whether further action is required to ensure these safeguards are enforced into the future.

5. The ongoing commitment of Telstra to a local presence (such as Telstra Country Wide) in regional, rural and remote Australia.

6. The most effective means by which the Government can ensure that people in regional, rural and remote Australia can share reasonably equitably - in terms of availability and cost - with residents in metropolitan Australia in the benefits of future advances in telecommunications services resulting from competition and new technologies.

In conducting its assessment the panel will be expected to consult with representatives of regional Australia, including the National Farmers' Federation. It will also take submissions from the public.

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