A conclusion to the ongoing debate over a suitable capped cost for the universal service obligation (USO) may finally come to light.
Following the release of the final report into the matter by the Australian Communications Authority (ACA) last week, the Department of Communications, Information Technology and the Arts (DCITA) has flagged the issue as a priority.
Industry debate erupted over the issue when Telstra announced the cost of delivering the service for the 1997-98 period was $1.8 billion, compared with $251.6 million for 1996-97.
The USO is a requirement by the Federal Government to ensure telephone services across Australia meet the needs of all customers. Telstra is currently responsible for the delivery of the service, but shares the costs incurred with all carriers.
"It certainly is a priority," said a spokesperson from the DCITA. "We recognise the need for industry to have certainty."
Neill Whitehead, ACA's executive manager, consumer affairs, said the matter is now the Government's responsibility. "It's firmly in the hands of the Minister [Senator Richard Alston] and the DCITA.
"The Government needs to make a decision on whether to adjust the USO capped amount. It's up to them what they do. They could accept or disregard the ACA report," he said, "but several million dollars hang on the decision [the Minister] makes."
In its report, the ACA suggested two possible estimates for the USO capped cost -- $280 million or $460 million. The Government originally capped the cost at $256 million.
Meanwhile, the ACA's estimates have faced industry backlash from competing carriers Cable & Wireless Optus and Vodafone, who claim the Government's $256 million cap is much closer to the real cost of the USO, which is around $180 million.
Comments on the USO can be sent to the DCITA for consideration.http://www.dcita.gov.au