In ASEAN, as elsewhere, telecommunications markets are being liberalised. The liberalisation process is expected to enhance efficiency, lower costs and reduce prices for the consumer. In turn, new services are developed and the quality of service improved. For society as a whole, the net effect is a general rise in welfare. However, within one specific area of telecommunications, universal service, the effects of liberalisation are not always so clear.

Telecommunication is a fastest growing industry that plays an important role in achieving development objectives. Universal service obligation has been a central focus of the development in telecommunication sector contributing to larger development objectives of reducing poverty through creating access for rural co mm unity to information and thus new opportunity to improve their livelihood. It further enables rural co mm unity, poor people and least developed regions to exploit their social and economic potentials.

International Telecommunication Union (ITU) in 1998 has defined universal service and access broadly as:

• Universal Service is to achieve availability, non-discriminatory access and widespread affordability of telephone services. Universal Service is in general a per-household concept measured by the percentage of households with a telephone.
• Universal Access is taken to mean that each person is within a reasonable distance of public-access telephone.

Organisation for Economic Co-operation and Development (OECD) in 1997 has defined universal access as the requirement that teleco mm unications operators provide basic voice telephone service to all who request it at a uniform and affordable price even though there may be significant diiferences in the costs of supply. In the respect Unviersal Service includes: (1) universal geographic access; (2) universal affordable access; (3) universal service quality; (4) universal access by the disabled; and (5) universal accessible tariffs.

In developed countries with almost ubiquitous telecommunications coverage, providing a universal service usually does not involve major new network roll-out, but rather the connection of customers to existing network facilities. In contrast, in developing countries, providing a universal service is likely to involve major expansion of the basic network into new localities.

Universal service obligation (USO) that was coined by ITU has been the driving force for narrowing the gap between urban and rural area. The government will assume the responsibility for ensuring that this minimum standard is met. For Indonesia , the criteria for universal service and access are defined as a basic telephony service with at least 9.600 Bps. The target recipient for such service is one telephone line in a village – paying similar call tariff with normal (fixed line) telephone use. In other country, the definition may differ according to the agreed criteria – such as access to targeted less wealthy co mm unity in the UK or based on the predetermined telephone density, such as in Malaysia and Hungary .

Universal service is the concept that every individual, in a given country, is entitled to some basic level of teleco mm unication service at an affordable price. The economic rationale for universal service obligation (USO) is that in the absence of obligation (involving some form of state intervention) the socially optimal amount of teleco mm unications services will not be provided i.e. left to itself, the market would leave some areas (for example those displaying low population densities, or difficult topography) un-served.

The ASEAN Member Countries (AMC) have in the Ministerial Understanding on ASEAN Cooperation in Teleco mm unications and Information Technology (signed in July 2001) that called for program implementation to bridge the digital divide within ASEAN by enhancing access to and use of teleco mm unications and IT. In the latest Vientiane Action Program (VAP) signed in November 2004, the section on teleco mm unications and IT will include program to leverage on ICT via public-private sector partnerships and strong linkages, to build a connected, vibrant and secure ASEAN Co mm unity.

Technology selection is critical to serve the objective of Universal Service Obligation (USO) implementation. Available technologies and their consequence on human resource in technically and administratively managing the service are important aspects in assessing and prioritizing technology options for different circumstances. The costs for planning, procuring, operating and maintaining the service are another important consideration for introducing a particular technology option.

The project indicates the needs of USO current technology options assessment for ASEAN countries and provides a reco mm endation of USO implementation in various countries in the region.