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Tuesday, 28 February 2006 19:24

New price controls on Telstra

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Price controls on Telstra have been amended to require it to charge no more than 22 cents for a local call and to offer a basic line rental service at the same price ($31.95) everywhere in Australia.

The Government announced in December last year that price controls on Telstra would be amended and has now implemented those amendments in The Telstra Carrier Charges - Price Control Arrangements, Notification and Disallowance Determination No.1 of 2005 (Amendment No. 1 of 2006).

The Determination stipulates that the price for the basic line rental service to residential customers will remain frozen at its level on 31 December 2005 of $31.95 until 30 June 2007, and thereafter only increase at the rate of inflation. In addition, customers who select the basic line rental service from Telstra will be able to select other carriers for their trunk and international calls if they choose.

The Determination also make changes to the price cap on dial-up Internet calls using the 0198 number range to ensure these calls are capped along the same lines as local calls.

Other price control arrangements introduced on 1 January 2006 will remain: untimed local calls will remain capped at 22 cents and Telstra is still required to continue to offer a package of services and support targeted at low income consumers.

A review of the price controls will be initiated in 2008 for completion in early 2009.


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