Home Policy Regulation Telstra price controls extended for two more years
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The Government has decided to extend retail price controls imposed on Telstra for a further two years, to June 2014, ensuring that local calls will cost no more than 22 cents and that local calls from payphones will not rise above their current 50 cents.


Calls to directory assistance will also remain free of charge for Telstra fixed-line customers. The current caps were due to expire at the end of June and the decision to renew them follows a public consultation process initiated by DBCDE in October 2011.

Announcing the move, communications minister, senator Stephen Conroy, said: "Telstra still dominates the market for fixed-line services on the existing copper network, so it's appropriate for the government to keep retail price controls in place for these services while that network is progressively decommissioned."

Telstra will be exempt from retail price controls using services provided over the NBN or designated superfast telecommunications networks, with the exception of the cap on untimed local calls for telephony-only users and ministerial disallowance of charges for directory assistance calls. This recognises the reduced need for regulation of retail services on the NBN while maintaining important consumer protections for telephony-only users.

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Stuart Corner

 

Tracking the telecoms industry since 1989, Stuart has been awarded Journalist Of The Year by the Australian Telecommunications Users Group (twice) and by the Service Providers Action Network. In 2010 he received the 'Kester' lifetime achievement award in the Consensus IT Writers Awards and was made a Lifetime Member of the Telecommunications Society of Australia. He was born in the UK, came to Australia in 1980 and has been here ever since.

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