Overview of fixed telephone services

Fixed telephones are of continuing importance to all Australians whether they are used for residential or business purposes.

Fixed telephones are used for voice communications, but the copper wires that carry the voice signals are also widely used for Internet access, fax services and to provide communications for people with disabilities. Approximately 96 per cent of fixed telephones provide enhanced call handling features such as call waiting, call return and caller identification.

There are two primary components to the fixed telephone network. First, there is the extensive customer access network, comprising the cables (usually copper wire pairs) that connect customer premises to their local exchange. Some of the network – mainly in parts of rural and remote Australia – uses technologies such as radio or satellite. This network, also known as the 'local loop' or 'the last mile', is predominantly owned by Telstra with other carriers connecting to it under access agreements. Second, there is the backbone, or trunk network, predominantly composed of optical fibre cables – and sometimes microwave links – which connects exchanges to each other.

The key issues for consumers of fixed telephone services are the availability of services, connections, pricing, reliability, repairs and customer service.

The principal strategy to improve fixed telephone services in Australia has been to encourage effective competition between as many telephone companies as possible.

As of July 1 2007, there were 169 licensed carriers and hundreds of service providers offering a wide range of services including fixed telephone services, mobile services, Internet access and pay TV. Open competition means that consumers of fixed telephone services can now choose from a range of telephone companies to provide their local, long-distance, international and fixed to mobile calls.

In this new environment consumers need to be aware of their options and their rights in order to make the most of the new range of services available.

The competitive market is underpined with a regulatory safety net that is among the best in the world. This safety net establishes the laws and regulations under which telephone companies operate and includes the universal service obligation (USO), the customer service guarantee (CSG), the network reliability framework (NRF), extensive performance monitoring and reporting, and an Ombudsman scheme.

• Document ID: 3956 |
• Last modified: 6 February 2008, 12:28pm