The peak industry body looking after the interests of telecoms consumers, the Australian Communications Consumer Action Network (ACCAN), has welcomed the Productivity Commission’s report on the telecommunications Universal Service Obligations but says Customer Service Guarantees provided under the USO are outdated and in need of updating.
The ACCAN supports the Commission’s findings that consumer safeguards, including those that support affordability, should be reviewed as soon as possible.
Although welcoming the Productivity Commission's report and the findings that changes to the USO are needed, the ACCAN cautions that the timing of any changes that may be made will be crucial to ensure that no consumer is “worse off in the transition or disconnected due to reforms”.
“The order of any changes implemented will need to be given careful consideration,” it says.
{loadposition peter}In its own submission to the Productivity Commission inquiry, the ACCAN outlined the need for an expanded scope for the USO and broader affordability measures and changes to ensure greater inclusion for people with a disability.
“However, we question the Productivity Commission’s finding that Customer Service Guarantee’s relevance is questionable, due to the increasing proportion of consumers agreeing to waive it.
“Most providers will not offer services unless this guarantee is waived. Furthermore, as the draft report points out, the only service that the CSG applies to, fixed-line voice services, are in decline.
“ACCAN believes that this guarantee is outdated and in need of updating reflecting the new baseline service, but it is not irrelevant.”
The Productivity Commission released its report on its review of the USO on Tuesday, and called for the USO to be scrapped, labelling it as "difficult to justify", and "anachronistic”and in need of change.
On consumer safeguards, the Commission said the Australian Government should proceed with its intended review of the telecommunications consumer safeguards framework as a matter of priority, and that the review should include an assessment of:
• What, if any, future safeguards are necessary
• What changes should be made to Telstra’s carrier licence conditions
• The future role of accessibility and affordability measures, including the Telephone Allowance, the National Relay Service and relevant elements of the National Disability Insurance Scheme
• The consumer protection roles of various bodies including: the Australian Competition and Consumer Commission; the Australian Communications and Media Authority; and the Telecommunications Industry Ombudsman
• The delineation of responsibilities for service quality (including fault repair) on the NBN.
In today’s response to the Productivity Commission’s report, the ACCAN said the current USO only guarantees supply of a standard telephone voice service.
“ACCAN argued (in its submission) that this is out of step with the services that consumers are now using and that the USO must be broadened to also guarantee data services, essential content (education and government services) and include service guarantees for connection, fault repairs and reliability standards.
“We support the Commission’s call for a modernised and forward-looking approach to the subsidy and support arrangements that form universal telecommunications services in Australia.”
The ACCAN, however, highlights one area of concern it has with the delivery of voice services over the NBN in rural and remote areas.
“The report seeks comments about the adequacy of the satellite service for voice as a baseline, taking into considerations such as its reliability and any impact from latency. Reforming the USO should not lower the baseline service, if any change in this area results in a lower level of service to consumers in regional, rural and remote areas it would be very concerning,” the ACCAN stressed.
The ACCAN also said it welcomed the report recommendation for the establishment of a community telecommunication service.
“The report also asks how alternative services could be delivered to premises that do not currently have mobile services. Many industry providers praised and supported the Productivity Commission’s findings yesterday, ACCAN is looking forward to seeing proposals from these providers as to how they propose to deliver alternative services to these consumers,” ACCAN concludes.