Price Caps Remain On Telstra Lines

Telstra customers will continue to have price-caps on Telstra fixed-line phone calls and line rentals for a further two years under the Government’s proposed extension of price control arrangements.

Telstra customers will continue to have price-caps on Telstra fixed-line phone calls and line rentals for a further two years under the Government’s proposed extension of price control arrangements.

Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy said keeping the cost of local calls at 22 cents and a range of other measures were important protections for consumers.

“A draft amendment to the current legislative instrument is now available for comment on my Department’s website,” Senator Conroy said. “The proposed amendment will delay the present expiry date of 30 June 2010 by two years, to 30 June 2012.”

The price controls set an upper limit on what Telstra can charge for fixed-line services such as local calls from residences (22 cents) and payphones (50 cents), as well as capping long-distance and international calls and monthly rental for a basic phone line.

Senator Conroy said while Telstra and some parts of the industry had argued that price controls should cease, the Government considered that consumer interests were best served by continuing to keep them in place.

“The ACCC reviewed this matter earlier in the year and recommended the controls be extended by two years, and that their overall scope and composition not be changed. This review is on the ACCC’s website,” said Conroy.