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Mobiles and the USO

The “Rethinking the USO” report by Prof. Reg Coutts this week does not go far enough.

Yes, the universal service obligation (USO) needs reform and a universal service fund will be part of that. The changes that have driven the need for reform and why I think Reg Coutts has stopped short of the conclusion that leaps out of his analysis are discussed in Economuse 2015-07-15

The USO is very complicated and more reflections on possible approaches for the future will be published in these columns before the end of the year.

Submission on USO Levy

The Bureau of Communications Research at the Department of Communications is tasked with finding out how to fund non-commercial services on the NBN. An industry levy seen as the prime mechanism that will sustain these services in the presence of infrastructure competition (as I argued in my 2010 submission to the Senate).

This submission is a response to the request for comments on the Bureau’s first consultation paper.

To access the submission, click USO-Levy-JdR

Fixed wireless, by-pass and affordability

NBN Co.’s fixed wireless and satellite programme is going to cost $1.7 billion more than expected. This raises the stakes in the issues of universal pricing and efficient by-pass.

There are several complementary methods which would help resolve these issues and this column looks at asset write-downs.

In the context of write-downs, the column also explains how a bigger issue for affordability than regional cross-subsidy (because all customers are affected) is a revenue claw-back scheme that the ACCC has sanctioned.

To read more go to Economuse 2014-05-12