The Government is looking to use LEO satellites and D2D services to improve rural coverage, although there are concerns it could crowd out existing initiatives
A world first proposal to deliver near-universal mobile voice and SMS
On 25 February 2025, the Australian Government announced plans to consult this year on a “world first reform” to deliver basic outdoor mobile coverage across almost the whole country. The Universal Outdoor Mobile Obligation (UOMO) would require operators to provide near-nationwide access to mobile voice services and SMS, ensuring 5 million square kilometres of new competitive outdoor mobile coverage as well as connectivity along 37,000km of unserved regional roads. In this context, the Government’s policy objectives are to:
Expand access to Triple Zero (i.e. emergency) services;
Expand outdoor voice and SMS coverage into existing mobile black spots; and
Improve the availability of mobile connectivity during disasters and power outages.
According to Michelle Rowland MP (Minister for Communications, Australia), the UOMO would improve public safety, increase resilience during natural disasters and provide an extra layer of coverage in areas previously thought too difficult or costly to reach. The National Famers’ Federation welcomed the announcement, stating the proposal would create and safeguard the right to access call and text services from any location, but warned it should not be used as an excuse to reduce investment in terrestrial mobile networks. The Government also stated that basic mobile data may become part of the UOMO in the future, reflecting the addition of fixed broadband to USOs in many countries, which were traditionally focused on voice and often the provision of physical telephone directories.
Australia was one of the first to establish a regulatory framework for D2D satellite services
Rowland added that leveraging the “latest technology” is a vital element of the Government’s plan to make Australia the “most connected continent” by 2030. The proposed reform is only possible due to recent innovations in Low Earth Orbit Satellites (LEOSats), and the arrival of Direct to Device (D2D) technology. As our research found, like other countries such as Sweden, Australia has acknowledged the importance of satellite connectivity for connecting the hardest to reach communities. It is also one of the first to establish a regulatory framework for the authorisation of D2D services alongside Canada and the US. With expected launches of D2D messaging in 2025, the Australian Government is moving to ensure this technology becomes part of a modernised and expanded voice universal service obligation (USO). The policy has been informed by engagement with the Government’s ‘LEOSat Working Group’ and the Australian Communications and Media Authority (ACMA), the findings of the 2024 Regional Telecommunications Review, and feedback from regional and remote stakeholders about the need for multiple connectivity paths. The Government intends to consult and introduce legislation in 2025 to expand the universal service framework, and it is keen to work with stakeholders throughout the process to offer flexibility (for example, in relation to the spectrum available for D2D use) and to remove barriers to industry supporting public interest objectives and competition outcomes.
Australia’s mobile trade association has warned that the UOMO could risk commercial investment in new mobile sites
If legislation is passed, implementation of outdoor voice and SMS is expected by late 2027. The UOMO proposal would add to operators’ existing obligations to provide fixed-line services across Australia, with the National Broadband Network (NBN) Co the primary provider for the broadband Universal Service Guarantee (USG) and Telstra required to provide reasonable access to landline services and public payphones. However, according to industry body Comms Alliance, Telstra’s fixed-line USO is now only required by less than 2.5% of premises and the announcement of a UOMO will make it increasingly hard to justify. Comms Alliance has also warned that there is a need to carefully consider whether or not a legislated obligation to deliver coverage via LEOs could reduce investment incentives for new mobile towers, given co-investment schemes like the Mobile Black Spot Program (MBSP) are “already running out of steam”. The Government has stated that it remains committed to the MBSP – as well as to the Mobile Network Hardening Program – to expand terrestrial mobile coverage, resilience and capacity. Further reforms to the universal service framework may be announced in the future as the Government considers recommendations from the Regional Telecommunications Review.
