Optus supports the fundamentals of the Universal Service Obligation (USO) in telecommunications – and believes it can improve and bring stronger competition to regional and rural Australia.

All Australians, regardless of where they live, must continue to be entitled to receive the standard telephone service on an equitable basis and within specified time frames. This is guaranteed under the USO.

Optus welcomes the Government’s decision in June 2005 to reduce the Net Universal Service cost to $145 million by 2008.  We see this reduction as a welcome recognition of our longstanding arguments that the current arrangements for funding universal service have the effect of suppressing competition.

Optus has proposed that it would use the funds that it would otherwise have paid to Telstra for a period to deliver rural and regional communications services to further stimulate competition in rural and regional areas.