RURAL Australia is badly hamstrung by poor phone services, an independent inquiry has found. 
 

Released today, the 5-person inquiry's report said mobile phone coverage was still a major problem, accounting for only 15 per cent of Australia's land mass.

Satellite mobile phones were expensive and service could be interrupted by a number of factors, it said.

There was a "serious mis-match'' between these realities and the more positive impression of coverage given by industry.

"People in regional Australia do not have equitable access to hand-held mobile telecommunications services,'' the report said.

Access to affordable and efficient internet services was also deficient, and there were still too many problems getting phone services repaired, it said.

The report said the Federal Government must impose tougher legislated requirements to force phone companies to guarantee rural areas an acceptable level of access to all phone services.

There should be a requirement for companies to tell customers about mobile coverage when they buy phones, as well as tighter time periods for repairing phones.

The government should also cut the price of satellite mobile phones by beefing up subsidies currently available, the report said.

And it should take interim action to improve broadband access in badly-affected areas in advance of the new national broadband network being set up.

Federal Communications Minister Senator Stephen Conroy said the government would respond to the review's findings within the next six months.

He said up to $400 million was available to fund specific initiatives.

Commissioned by the former Howard Government, the review was chaired by former Australian Medical Association boss Dr Bill Glasson.

It held meetings in 20 rural locations and received more than 200 submissions.