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Technically, it still is a public service...
http://www.telstra.com.au/abouttelstra/commitments/uso/
To a degree that is true, but they are payed to provide the service and the other service providers have to chip in.
They technically are not a public service, since the future fund sold down its holding.
They have an obligation, due to the fact they are the only service provider, that has existing equipment throughout Australia.
Once the N.B.N has taken over the backbone infrastructure, one would think the onus would be on the government to take on the service obligation once again. LOL