Chapter 1Introduction

1.1On 5 March 2026, the Senate referred the provisions of the Telecommunications Legislation Amendment (Universal Outdoor Mobile Obligation) Bill 2025 (the bill) to the Environment and Communications Legislation Committee (the committee) for inquiry and report by 14 May 2026.[1]

1.2The bill seeks to amend the Telecommunications (Consumer Protection and Service Standards) Act 1999 (the Act) to establish a framework to create a Universal Outdoor Mobile Obligation (UOMO). This framework would complement the existing Universal Service Obligation (USO), which applies to fixed voice services and payphones.[2]

Context and background to the bill

1.3The Explanatory Memorandum states that the bill proposes ‘a significant and important reform that will bring mobile services within the universal services framework’. The Explanatory Memorandum explains:

Mobile telecommunications are essential to people in Australia, especially in regional, rural and remote areas. Stakeholders have longstanding concerns for public safety given gaps in terrestrial mobile coverage, including on many regional and remote roads. In response, the UOMO will require major mobile network operators, Telstra, Optus and TPG Telecom (and any other providers designated in the future) to provide outdoor baseline mobile coverage across Australia on an equitable basis. This reform will benefit all Australians and in particular remote and regional communities, by expanding baseline mobile coverage, which will in turn, improve public safety by enabling connectivity to essential services and Triple Zero.[3]

1.4Mobile Network Operators—currently Telstra Limited (Telstra), Optus Mobile (Optus) and TPG Telecom—will be expected to meet the UOMO using a mix of their current terrestrial mobile coverage and Direct to Device (D2D) technologies delivered over Low Earth Orbit Satellite platforms.[4]

1.5The D2D technology is expected to enable delivery of baseline mobile services—voice services and short message services (SMS)—where previously such services were not commercially viable or, in some instances, feasible. The Explanatory Memorandum acknowledges that the D2D technology and market are still evolving and for these reasons the bill proposes a flexible framework:

D2D technology is evolving, with required infrastructure still being deployed. At the same time, the market is developing quickly, with new providers, and partnerships being forged around the world. Currently SMS services are available in a number of countries on certain handsets, including in Australia, and voice services are expected to follow. Recognising this, the Bill creates a flexible framework which can be adjusted, by disallowable legislative ministerial instrument, as the market develops and satellite technology evolves.[5]

1.6In 2023, the Commonwealth Government consulted on universal telecommunications service delivery and funding arrangements given emerging technologies and consumer preferences. The Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts (the department) summarised the outcome of that consultation as follows:

Overall, the consultation process demonstrated there is broad support for change to universal service arrangements to better reflect evolving consumer needs and the emergence of new alternative technologies. Many stakeholders suggested a more flexible and technology-neutral approach would be preferable, including to adopt modern networks and services that are best suited to each premises, and to future-proof arrangements.[6]

1.7In 2024, the triennial Regional Telecommunications Review also considered reform options and recommended that, as a priority, the Australian Government modernise the USO to reflect today’s digital realities.[7]

1.8On 25 February 2025, the Hon Michelle Rowland MP, the former Minister for Communications (the minister), announced that the Commonwealth Government would be establishing the UOMO.[8] From September to October, the department consulted on an Exposure Draft of the bill and reported:

There were 88 submissions on the Exposure Draft of the Bill from industry, individuals, consumer representatives, state government agencies and local governments. There was general support for the provisions in the Bill, but some submitters proposed changes.[9]

Key provisions of the bill

1.9The bill comprises one schedule of amendments: Part 1 sets out proposed provisions in relation to the UOMO, and Part 2 would provide for mobile telecommunications service standards, benchmarks and rules.

Establishment of the UOMO

1.10Part 1 of Schedule 1 of the bill would amend three Commonwealth Acts, with the key changes proposed in relation to the Act.[10]

1.11This Part seeks to amend Part 2 of the Act, to incorporate the UOMO into the existing universal service regime, to provide a range of new ministerial powers and to designate Telstra, Optus and TPG Telecom as the primary universal outdoor mobile providers (PUOMPs) from the ‘default date’ (currently, 1 December 2027).[11]

1.12Proposed section 8BB of the Act defines the types of Designated Mobile Telecommunications Services (DMTSs) that will be subject to the UOMO. Proposed subsection 8BB(1) defines the initial DMTSs as voice and short message service services that enable users to communicate with each other. Proposed subsection 8BB(2) enables the minister to designate other services as DMTS in the future, which would make these services subject to the UOMO following consultation with existing PUOMPs as outlined in proposed subsection 8BB(3).[12]

1.13Proposed section 8D defines the area that will be covered by the UOMO as the ‘outdoor mobile coverage area’, which is defined as any geographical area within Australia.[13]

1.14Proposed Division 2A would create the UOMO. It comprises three subdivisions, as follows:

Subdivision A would define the UOMO, including, for example, the ‘universal outdoor mobile obligation’ as the obligation to ensure that mobile coverage is reasonably available outdoors to all people in Australia on an equitable basis.[14]

Subdivision B sets out provisions in relation to the determination of PUOMPs including the following:

Proposed section 12J provides that the minister may determine in writing that a specified carriage service provider is a ‘Primary Universal Outdoor Mobile Provider’.[15]

Proposed section 12K sets out how multiple PUOMPs for the same outdoor mobile coverage area can comply with the UOMO.[16]

Proposed section 12M defines the ‘default day’ on which the UOMO will commence, being 1 December 2027. The proposed section also empowers the minister to postpone the default day by up to 12 months.[17]

Subdivision C provides powers for the minister to make standards, rules and benchmarks relating to the supply of DMTSs. For example, the minister may, by legislative instrument, determine standards to be complied with by PUOMPs in relation to certain matters relating to telecommunications services.[18]

1.15The bill would repeal and replace section 73 of the Act to provide for the delegation of the minister’s powers. The minister would be granted discretion in writing to delegate any or all of the minister’s functions or powers under this Part to the Australian Communications and Media Authority (the ACMA).[19]

Ministerial powers relating to standards, benchmarks and rules

1.16Part 2 of Schedule 1 of the bill would insert a new Part 5A into the Act to provide that the minister may determine standards, set benchmarks and make rules which carriers and carriage service providers must comply with in relation to mobile telecommunications services ahead of the UOMO default day. The proposed powers are separate to the UOMO-specific standards, rules and benchmarks that could be made under the proposed powers specified in Part 1 of Schedule 1 of the bill.[20]

1.17Proposed section 125B of the Act would give the minister discretion, by legislative instrument, to determine standards which carriers and carriage service providers (CSPs) must comply with in relation to specified services relating to mobile telecommunications services supplied, or proposed to be supplied, by the carriers and providers. These services include, for example, the reliability of a mobile telecommunications service.

1.18Proposed sections 125C to 125E of the Act would give the minister discretion, to determine minimum benchmarks with a standard determined under section 125B and other standards, and to make rules. These benchmarks or rules may make provision for, or in relation to a matter, by conferring a power on the ACMA to make a legislative instrument.

1.19Proposed section 125F of the Act would give the minister discretion, in writing, to delegate any or all of the minister’s functions or powers under the proposed Part 5A to the ACMA to be exercised by certain employees. The bill proposes a similar discretion for SES Band 2 employees in the department.[21]

Financial impact statement

1.20The Explanatory Memorandum states that the bill will have no financial impacts as the Australian Government can use funds in the Public Interest Telecommunications Services Special Account to support contracts or grants for the UOMO.[22]

Consideration by other parliamentary committees

1.21When examining a bill or draft bill, the committee considers any relevant comments published by the Senate Standing Committee for the Scrutiny of Bills (Scrutiny Committee) and the Parliamentary Joint Committee on Human Rights.

1.22The Scrutiny Committee examined the bill and expressed concern that proposed sections 12G and 12M would enable delegated legislation to modify the operation of the primary legislation (Henry VIII clauses).[23] The Scrutiny Committee noted that such clauses 'impact on the level of parliamentary scrutiny and may subvert the appropriate relationship between the Parliament and the Executive'.[24] The Scrutiny Committee drew these matters to the attention of the Senate.[25]

1.23The Parliamentary Joint Committee on Human Rights made no comment on the bill.[26] However, the Explanatory Memorandum states that the proposed legislation is compatible with human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.[27]

Conduct of the inquiry and acknowledgement

1.24In accordance with its usual practice, the committee advertised the inquiry on its website and called for submissions by 8 April 2026. The committee continued to accept submissions received after this date. The committee received and published 30 submissions, which are listed at Appendix 1.

1.25The committee held a public hearing in Canberra on 20 April 2026, and a list of the witnesses who gave evidence is at Appendix 2.

1.26The committee thanks the organisations and individuals who made submissions and who provided evidence to the inquiry.

Structure of the report

1.27This report comprises two chapters:

Chapter 1 outlines the background and key provisions of the bill, and the conduct of the inquiry; and

Chapter 2 examines the key issues raised in relation to the bill, and sets out the committee’s views and recommendations.

Footnotes

[1]Journals of the Senate, No. 36, 5 March 2026, p. 1308.

[2]Telecommunications Legislation Amendment (Universal Outdoor Mobile Obligation) Bill 2025 (the bill), Explanatory Memorandum, pp. 25–36. Note: the Universal Service Obligation is a consumer protection that supports access to phone services and payphones, and, at present, Telstra is the primary universal service provider.

[3]Explanatory Memorandum, p. 2. See also: The Hon Anika Wells MP, Minister for Communications and for Sport, House of Representatives Hansard, 27 November 2025, pp. 4208–4209.

[4]Explanatory Memorandum, p. 2.

[5]Explanatory Memorandum, p. 2.

[6]Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts (the department), ‘Better Delivery of Universal Services’, www.infrastructure.gov.au/have-your-say/better-delivery-universal-services (accessed 10 April 2026).

[7]Australian Government, Regional Telecommunications Review, 2024, pp. 4 and 8, www.infrastructure.gov.au/sites/default/files/documents/2024-regional-telecommunications-review.pdf (accessed 10 April 2026).

[8]The Hon Michelle Rowland MP, ‘Albanese Labor Government building Australia’s mobile future’, Media Release, 25 February 2025, https://minister.infrastructure.gov.au/rowland/media-release/albanese-labor-government-building-australias-mobile-future (accessed 10 April 2026).

[9]Explanatory Memorandum, p. 6. Note: some stakeholder suggestions are considered in Chapter 2 of this report.

[10]Note: the bill would make minor and consequential amendments to the Competition and Consumer Act 2010 and the Telecommunications Act 1997.

[11]Explanatory Memorandum, p. 2.

[12]Explanatory Memorandum,pp. 16–17.

[13]Note: The area of ‘Australia’ in the context of the bill draws from the definition that is part of the Telecommunications Act 1997, which includes all mainland territories, as well as the external territories of Christmas Island and the Cocos (Keeling) Islands. There is an exception to the ‘outdoor mobile coverage area’ defined by the bill, which is the Australian Radio Quiet Zone in Western Australia, and will not be subject to the Universal Outdoor Mobile Obligation (UOMO). For further information see proposed subsections 8D(5)–(7).

[14]Proposed subsection 12F. Note: the bill defines ‘outdoors’ as excluding buildings, vehicle, aircraft or vessel, or areas that are underground or underwater. This is a key definition as it relates to the reasonable expectations where the Minister could determine that Primary Universal Outdoor Mobile Providers (PUOMPs) would not be obligated to provide coverage due to technological limitations or logistical factors.

[15]Explanatory Memorandum, pp. 21–22.

[16]Explanatory Memorandum, p. 22.

[17]Explanatory Memorandum, pp. 23–24.

[18]Item 16 in Part 1 of Schedule 1. See also: Proposed sections 12Q-12S – Part 1 of Schedule 1 of the Bill.

[19]Explanatory Memorandum, pp. 25–30.

[20]Explanatory Memorandum, p. 2.

[21]Proposed section 125G.

[22]Explanatory Memorandum, p. 7. Note: Item 17 in Part 1 of Schedule 1 of the Bill would insert the new policy objective into Division 2 of Part 2 of the Act to ensure the use of the Special Account.

[23]Senate Standing Committee for the Scrutiny of Bills (Scrutiny Committee), Scrutiny Digest 2 of 2026, 4 February 2026, p.16.

[24]Scrutiny Committee, Scrutiny Digest 2 of 2026, 4 February 2026, p. 40.

[25]Scrutiny Committee, Scrutiny Digest 2 of 2026, 4 February 2026, p. 42.

[26]Parliamentary Joint Committee on Human Rights, Scrutiny Report 1 of 2026, 4 February 2026, p. 8.

[27]Explanatory Memorandum, p. 8.