Telstra price controls extended

Retail price controls for Telstra extended by two years

The Federal Government has chosen to extend the retail price controls (RPCs) placed on Telstra's fixed-line services for two more years, saying it will continue to benefit Telstra customers.

Local calls will continue to be capped at $0.22 per call and $0.50 from payphones. Other controls that will remain include caps on long-distance and international calls as well as fixed-line rental fees.

Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy, said that extending the controls, which have been in place since 2007, until 30 June, 2012 is necessary to protect consumers.

The decision by Conroy to avoid making changes to the existing controls was based on a review by the Australian Competition and Consumer Commission (ACCC). The ACCC made other recommendations that the Government chose not to implement. These recommendations included changing how schools would be charged for fixed-line rentals, which the ACCC said should be subsidised directly by the government.

Optus, one of Telstra’s main competitors, wrote a submission in response to the ACCC's report stating that the controls should be removed altogether: "The first-best policy response is for the Commission to remove RPCs on all fixed line services immediately as there are no efficiency gains to be made by continuing the regime." Telstra also called for the removal of RPCs: "As competition has grown in the market to deliver these benefits, price controls have been successively relaxed. If the price controls arrangements are not removed completely, they should be relaxed further."

Conroy said that another review of RPCs would be needed in 2011 as the National Broadband Network (NBN) begins to take shape.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags acccSenator Stephen ConroyoptusTelecommunicationsTelstra

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Kevin Cheng

Good Gear Guide
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?