Claire Clutterham (Sturt, Australian Labor Party) Share this | Hansard source

Mobile phones are everywhere. They are an integrated part of society, and most adults in Australia and around the world have one. Many people believe that mobile phones are an essential part of modern day life that benefit us in a variety of ways, such as allowing us to communicate anywhere and any time. You can order food; do your banking; check the weather; track your sleep, health and fitness; navigate your way around; and stay in touch with family and friends on your mobile phone. Mobile phones really are an indispensable part of our daily lives, but, with the rapid advancement of technology, mobile phones have evolved from simple devices used for making calls and sending texts to sophisticated smartphones that can perform a wide range of sometimes critical tasks. So access to telecommunications is not a 'nice to have' or a so-called 'first world service'; it's an essential service that is foundational for public health and safety.

Australia's universal service obligation is a longstanding consumer protection that supports access to phone services and payphones and is underpinned by the notion that, wherever people live or work, they must have reasonable and equal access to these services. As Australia's service provider, Telstra delivers the universal service obligation. As part of this, they have to provide standard telephone services and access to payphones.

Standard telephone services include a number of features, including access to local, national and international calls; untimed local calls; 24-hour free access to emergency service numbers; priority assistance for those with a life-threatening medical condition; a customer service guarantee, which is an acceptable connection and repair timeframe; a unique telephone number, with or without a directory listing; preselection, which allows the user to preselect another provider for long-distance, fixed-to-mobile and international calls where the standard telephone service is provided over Telstra's copper network; calling-line identification; operator and directory assistance; and itemised billing.

The USO was originally introduced in the late 1980s, during a period of economic reform, as the Australian government sought to introduce competition into network industries that were previously government owned. To prevent a scenario where regional consumers were left unserved or underserved, the USO was established to ensure that Telstra would continue to provide affordable standard telephone services in these areas. Initially introduced as the community service obligation in 1989, it was renamed the universal service obligation two years later and was followed by the introduction of a telecommunications industry levy intended to recognise the net costs of delivery of services in some loss-making areas. Over time, however, multiple reviews have recommended reform, arguing that the current USO arrangements are outdated.

They are outdated because of the development of technology. Mobile phone services are available in urban areas, many regional areas and along national and regional highways. Mobile phone services currently reach 99 per cent of the Australian population. To say that Australians rely on mobile phones for their connectivity more than ever is to state the obvious. But, despite the breadth of coverage, Australia's longstanding USO does not include mobile services.

This bill, which creates the universal outdoor mobile obligation, will change that by establishing a framework to create this obligation, which complements the existing USO. In short, this is a significant and important reform that will bring mobile services within the universal services framework.

It is being implemented following a period of extensive public consultation on options to modernise the USO and consideration of current arrangements via the independent 2024 Regional Telecommunications Review. With respect to this consultation, the government has also consulted widely, and feedback from a range of stakeholders was considered in drafting the bill. An exposure draft of the bill was issued in September 2025, and 88 submissions were received from industry, individuals, consumer representatives, state government agencies and local governments.

The Regional Telecommunications Review takes place every three years and it presents an opportunity to examine the existing and future telecommunications needs in regional, rural and remote communities across Australia. The 2024 review was themed 'Connecting communities, reaching every region'. It acknowledged that the USO must be modernised to reflect today's digital realities. It also acknowledged that many rural and remote residents, especially those who live where there is no mobile coverage, value their landline phone services delivered over copper and other legacy technologies, but that legacy voice services are ageing and becoming increasingly expensive to maintain and operate as the technology is phased out globally.

The review also acknowledged that Australians without mobile coverage and other vulnerable groups will need additional support when legacy voice networks are decommissioned. In doing so, the review recommended a unified service obligation that is technology neutral and has a mandate that voice-capable broadband services be available to all, and with the default provider being required to ensure these services meet minimum quality and speed standards, particularly in remote areas. The review also noted that the transition from copper and other legacy networks needed to be carefully managed, ensuring reliable alternatives are in place before any legacy infrastructure is retired.

Mobile telecommunications are essential to people in Australia, especially in regional, rural and remote areas. Stakeholders have longstanding concerns for public safety, given gaps in terrestrial mobile coverage, including on many regional and remote roads. In response, the universal outdoor mobile obligation will require major mobile network operators Telstra, Optus and TPG Telecom and any other providers designated in the future to provide outdoor baseline mobile coverage across Australia on an equitable basis. This reform will benefit all Australians, particularly remote and regional communities, by expanding baseline mobile coverage, which will in turn improve public safety by enabling connectivity to essential services and triple zero.

In terms of the structure of the bill, there is one schedule comprising two parts. The first part amends existing part 2 of the Telecommunications (Consumer Protection and Service Standards) Act to incorporate the universal outdoor mobile obligation into the existing universal service regime. It also provides for a range of new ministerial powers, including to set standards, rules and benchmarks for mobile service quality and reliability in connection with the new obligation. It also sets the default designation of Telstra Ltd, Optus Mobile Pty Ltd and TPG Telecom Ltd as primary universal outdoor mobile providers from 1 December 2027. These entities will for the first time be obligated to provide reasonable access to outdoor baseline mobile coverage across Australia on an equitable basis.

Part 2 of schedule 1 inserts the new part 5a into the Telecommunications (Consumer Protection and Service Standards) Act to give the minister for communications new powers to make standards, rules and benchmarks that need to be complied with by carriers and carriage service providers in relation to mobile telecommunications services.

It goes without saying that some sectors of the community thought that the delivery of mobile coverage across Australia's vast inland areas would not be possible, but technology has intervened. In particular, the growth and development of new low-Earth-orbit satellite direct-to-device technology will make it possible. This direct-to-device technology is incredible. It's a satellite communication technology that allows conventional devices such as mobile phones or IOT sensors to connect directly to satellites in low Earth orbit, bypassing traditional cellular networks and ground based infrastructure. This means a device can send and receive data from virtually anywhere on the planet, even in areas without mobile coverage or network infrastructure.

Low Earth orbit is the region of space closest to Earth, typically extending from an altitude of between 500 and 2,000 kilometres, reducing latency and improving signal quality. Unlike cellular networks, where devices connect to ground towers, direct-to-device systems use satellites as network nodes in the sky, receiving and transmitting data directly. Low Earth orbit direct-to-device technology has enormous potential across multiple sectors, including emergency and disaster response, because it enables the transmission of messages or alerts when terrestrial networks are down or unavailable. Then, of course, it provides much needed connectivity in rural and remote areas without cellular coverage, improving access to digital services, education and health care.

Australia's investment in building sovereign satellites will underpin the growth of not only our domestic space capability but a range of other capabilities and will also promote partnerships between government and the private sector as investment in projects and missions and procurement from Australian companies take on much greater importance. Investment in sovereign space capability is critically important for Australian industry, science and skills formation. It will help commercialise innovation and translate the skills and capabilities developed in the space sector more broadly to the benefit of all Australian industry and society. Supported by this investment, one day Australia will also be able to send our Australian of the Year, astronaut Kathryn Bennell-Pegg, to space to further signal our commitment to space as a critical domain.

This bill, which is a nod to space and the role of LEO direct-to-device satellites, will modernise Australia's universal service arrangements to provide equitable access to basic mobile coverage outdoors—

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