Fed: ACCC says OK to Telstra line rental hikes = 2

AAP General News (Australia)
08-28-2001
Fed: ACCC says OK to Telstra line rental hikes = 2

Telstra plans to increase residential line rental charges to $19.90 from September
1, its third price rise in 18 months.

The ACCC refused its permission for the hike last week because it was not satisfied
there were alternatives available to make sure the average bill of budget customers did
not increase with the rental price rise.

Telstra then submitted a revised plan with more protection for consumers.

The company promised to send a message to its lowest bill customers telling them about
the HomeLine Budget plan, available to pre-selected customers whose last two bills were
under $25.30 a month.

It agreed to republish its HomeLine Budget brochure and include details about eligibility,
pricing and rebate on its website.

Professor Fels said the ACCC had a limited role in approving Telstra price rises but
had been concerned about the $2 advance fee to take part in the budget plan.

"Additionally, there was a further deterrent in that customers would not always know
in advance how many calls they might make in the upcoming month and therefore if they
would benefit from the plan," he said.

"The ACCC was concerned that under the existing plan, customers could forfeit the $2
plan fee and not receive the rebate if they made more calls than they expected."

AAP kmh/daw/hu/br

KEYWORD: TELSTRA 2 CANBERRA

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