Castalia Commissioned for Costing of Universal Service Obligation in Australia
Australia has moved to a telecommunications universal service policy approach of commercially contracting this obligation to Telstra for 20 years—under the previous approach, Telstra was required by statute to meet the USO as part of its licence conditions. Dr. Paul Paterson, head of Castalia's telecommunications practice, was commissioned to assist the negotiation between the Commonwealth Government and Telstra on the consideration to be paid to Telstra for assuming this obligation under contract, by modelling the annual cost to Telstra of meeting this obligation. The annual payment to be made to Telstra agreed by parties and cemented in the contract fell within the cost range determined by Paul's modelling.
A detailed description of this modelling is contained in Dr. Paterson's report located on the website of the Commonwealth Department of Broadband, Communications and the Digital Economy, and can be accessed directly by clicking here.