The Federal Government has capped local telephone calls over the Telstra network at $0.22 cents for at least the next two years.
Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy said keeping the cost of local calls at 22 cents and a range of other measures were important protections for consumers.
“A draft amendment to the current legislative instrument is now available for comment on my Department’s website,” Senator Conroy said.
“The proposed amendment will delay the present expiry date of 30 June 2010 by two years, to 30 June 2012.”
The price controls set an upper limit on what Telstra can charge for fixed-line services such as local calls from residences (22 cents) and payphones (50 cents), as well as capping long-distance and international calls and monthly rental for a basic phone line.
“Extending the controls to 2012 will ensure that consumers continue to benefit from these protections,” Senator Conroy said.
Senator Conroy said while Telstra and some parts of the industry had argued that price controls should cease, the Government considered that consumer interests were best served by continuing to keep them in place.
“The ACCC reviewed this matter earlier in the year and recommended the controls be extended by two years, and that their overall scope and composition not be changed. This review is on the ACCC’s website.
“The ACCC also made a number of suggestions for streamlining the current arrangements, which the Government has considered but decided against implementing.”
A further, more comprehensive review of pricing policy will be conducted during 2011 to assess the impact of the deployment of the National Broadband Network on the industry. The draft amendment can be accessed at: www.dbcde.gov.au/telephone_services/telstra_retail_price_controls
