Telstra Line Rental Fees Skyrocket Lindsay Tanner - Shadow Minister for Communications, Shadow Minister for Community Relationships

Media Statement - 30 April 2004

Telstra are again massively increasing their telephone line rental fees in just over a month. In John Howard's Australia the telephone is fast becoming a luxury.

Monthly line rentals on Telstra's popular Homeline Plus plan will rise by $3.45 to $29.95. That's a 13% increase, around ten percentage points above inflation. Telstra's other popular plan Homeline Complete rises by a massive 15% to $26.95. This is yet another hike in fees and charges from John Howard.

In March 2000, Telstra's line rentals were $11.65 per month. From June on standard plans they will be between $26.95 and $29.95 per month. That's around a 150% increase on standard line rental fees in four years under John Howard.

Customers who use their credit cards to pay their bills will also be slugged with a new surcharge from .63% to 1.69% of their bill.

Labor voted against John Howard's Telstra Line Rental Increases in 2002. At the time the Government said that while line rental costs would go up their rules would ensure "real price reductions in specified call services". This was again exposed as a giant con last night. Normal local call costs have not come down at all with this latest increase—in fact call connection fees go up by 2c.

The claim that reduction in call prices cancels out line rental increases is totally false. In the last financial year Labor estimates Telstra gained an extra $150 million from line rental increases even after allowing for minor reduction in call costs.

If John Howard gets his way and privatises Telstra prices will go up even more. Under John Howard's Telstra price laws you pay more and get less.