Universal outdoor mobile obligation criticised for being uncosted and unfunded

Labor’s pre-election pledge promises to deliver basic universal outdoor mobile coverage across Australia. But it has come under fire.

The Albanese government’s promise to force telecommunications companies to provide basic universal outdoor mobile coverage has come under fire for being uncosted, unfunded and reliant on technology still in its infancy.

In a pre-election pitch to regional voters, Communications Minister Michelle Rowland announced late last month that if re-elected, a Labor government would compel mobile carriers to provide access to mobile voice and SMS “almost everywhere across Australia”.

But it emerged when Communications Department officials were questioned at Senate estimates that costing for an expanded universal service obligation was still being “worked through” with industry and government.

“So the government have (sic) announced that they’re going to do something, but they haven’t said how much it’s going to cost?” Greens Senator Sarah Hanson-Young said.

“That’s a matter for future budget consideration by the government. The policy is set and will be funded and supported as appropriate,” departmental deputy secretary James Chisolm said.

Mr Chisolm said “some analysis” had been done to support the policy, with those details to be considered by the government “at the appropriate time”.

Communication Minister Michelle Rowland says the obligation would expand Triple 0 access to all Australians. Picture: Damian Shaw

The obligation would extend existing telecommunications policy that requires universal access to fixed voice and broadband technology to include a Universal Outdoor Mobile Obligation by late 2027, extending coverage to another 70 per cent of the country.

It relies on the rollout of emerging Low Earth Orbit Satellites, or LEOsats, which is being spearheaded by Elon Musk’s Starlink Services.

The satellites are positioned relatively low to the Earth’s surface, with hundreds or thousands of them eventually orbiting the earth.

The policy has been announced amid escalating complaints from regional and rural Australians who have been left with poorer connectivity since the shutdown of the 3G network last year.

Mr Chisolm said the federal government was willing to “incentivise” telecommunications providers where necessary, adding that existing funding arrangements for universal service obligations may be restructured.

Telstra is Australia’s current designated universal service provider, which sees them receive $270m to rollout landlines and payphones.

Labor Senator Jenny McAllister said the purpose of the federal government’s announcement was to signal the government’s intention to develop the market.

The National Farmers’ Federation has urged all sides of politics to support the policy to guarantee the safety and productivity of regional and rural Australia.