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Modernising universal service to reflect the digital age

Policymakers look to ensure broadband access meets the evolving needs of society, including considering the role of alternative technologies

Australian Government to ponder the role of satellite services

On 30 October 2023, the Australian Government’s Department of Infrastructure, Transport, Regional Development, Communications and the Arts (DITRDCA) launched a consultation on ways to better deliver “baseline” universal telecoms services. Under the existing framework, universal services are provided through two schemes:

  1. The Universal Service Obligation (USO), which supplies customers with standard telephone and payphone services; and

  2. The Statutory Infrastructure Provider (SIP) regime, which connects premises with broadband at a minimum speed of 25Mbps/5Mbps via the NBN Co’s fixed network.

In light of changing consumer preferences and recent technological advancements, including increased availability of connectivity via fixed wireless access, 4G, 5G and low Earth orbit (LEO) satellites, DITRDCA is keen to understand from stakeholders the outcomes that a modern universal service framework should deliver. While there have been concerns in the past about the ability of alternative solutions to deliver affordable and reliable universal services, DITRDCA has highlighted the promise of LEO satellites to support both low latency voice services and high-speed broadband. The Government is therefore reviewing the possible role they can play in supporting delivery of the USO, specifically in remote areas, with trials due to take place throughout 2024.

FCC moves to update the national broadband standard in the US

On 1 November 2023, the Federal Communications Commission (FCC) released a Notice of Inquiry (NOI) to begin its evaluation of the US’s universal service goals, including availability, affordability and adoption, and to increase the country’s minimum broadband speed benchmark. In 2015, this was set at 25Mbps/3Mbps – a level that FCC Chairwoman Jessica Rosenworcel considers “outdated” and risks certain demographics being left behind. The FCC plans to raise the benchmark to 100Mbps/20Mbps to reflect the necessity of high-speed internet, with the intention for it to reach 1Gbps/500Mbps in the future. Prior to the NOI, under the Bipartisan Infrastructure Law and Broadband DATA Act, the regulator has taken a range of complementary actions to strengthen digital inclusion, including:

  • Enacting new rules to tackle digital discrimination for more equitable access to broadband;

  • Providing a monthly broadband benefit of up to $75 (£60) for subscribers living in qualifying high-cost areas; and

  • Overhauling its mapping platform to better identify broadband coverage.

With universal service still funded solely from operators’ telephone revenues, there is a related question around whether the contribution base should be expanded. Large content and application providers (such as Google and Meta) are being considered as potential contributors, although progress on this front will require political intervention.

DSIT asks whether the UK’s broadband USO remains fit for purpose

In the UK, the Department for Science, Innovation and Technology (DSIT) has launched a consultation on the broadband USO to ensure it continues to provide an appropriate “digital safety net”. Since 2020, subject to certain eligibility criteria, the scheme has given end users the legal right to request a minimum 10Mbps/1Mbps broadband service from the two Universal Service Providers (USPs), BT and KTCom. However, over the last three years, a number of issues with the programme’s design and implementation have been raised by applicants, rural stakeholders and MPs. Also, amid the increasing digitisation of both households and businesses, DSIT considers it important to review whether the current speeds and data allowance (100GB per month) meet end user needs for their “full economic and social participation in society”. DSIT will review the service requirements, eligibility criteria and funding mechanisms within the USO, as well as consider efforts to further increase awareness of the scheme and to improve the effectiveness and transparency of its delivery. The Government anticipates issuing further consultations should it move ahead with any proposed changes to the regime.