Telstra jacks up line rental prices -- yet again

Send to a friend Print

Help more people find out about this story

Del.icio.us
StumbleUpon

Paul Wright22 August 2008, 12:03 PM

Telstra has yet again jacked up line rental again, just after announcing a record-breaking company profit of $3.7 billion — up 13.5% from the previous year.


From November this year Homeline Budget will increase from $19.95 to $20.95 and Homeline Complete rises from $26.95 to $27.95 making a large majority of Australians dig deeper in to their pockets to fund a larger record profit for Telstra.

As is if another twelve dollars a year to fund next year's profit increase wasn't enough, all calls to mobiles on both the above mentioned plans and the more expensive line rental plans will be charged per 30 second block of the call, rather then by the second.

As a vast proportion of calls from landlines now terminate to a mobile caller, this new windfall should bring in millions of additional revenue to Telstra. For mobile calls, Telstra will be able to claim another 30 seconds of call revenue, even if you only encroach into a 30 second block by one second.

The charges to basic line rental fees will also affect people who make very few calls or simply keep a landline service for an ADSL based internet service, though iiNet's recent financial results showed a massive upswing in takeup of Naked DSL services that do not require an active phone service on the line in order to have DSL. iiNet's profits are up 50 per cent, and it is signing up 1,000 people a month to Naked DSL.

However, Telstra's habitual price hikes for landlines are also creating good opportunities for other carriers to offer 'landline-replacement' services over mobile networks.

Optus recently launched unlimited calls under the brand 'Yes Timeless', and Three, Optus and Vodafone have all increased the value of their mobile capped plans to coincide with the release of the iPhone. Increasingly, the case to keep a Telstra home phone line is withering.


Post your comment



Comments

RSS feed Email alert

Me In Oz (Senior member):

Well at least now we know what is subsidising the 'slashed wireless' pricing :P

22 August 2008, 12:37 PM (3 months ago)report abuse Send to a friend reply

AndyCee (Cornerstone member):

Quoting Me In Oz:
Well at least now we know what is subsidising the 'slashed wireless' pricing :P
LOL, beat me to it :)




23 August 2008, 2:51 PM (3 months ago)report abuse Send to a friend reply

agami (User):

With all those people working at Telstra you'd think they'd be able to come up with better profit increase strategies than 'raise the price'.

I bet the guy who proposed it is getting hi-fived right about now.

22 August 2008, 1:30 PM (3 months ago)report abuse Send to a friend reply

Tin (Advanced Forumologist):

Can we hi-5 you for that comment?

22 August 2008, 1:57 PM (3 months ago)report abuse Send to a friend reply

Tin (Advanced Forumologist):

Will this price rise effect wholesale aswell? If so, I'll move to using just a mobile...

22 August 2008, 1:58 PM (3 months ago)report abuse Send to a friend reply

nutter (New user):

Oh goody! ANOTHER line rental increase!
I remember when line rental was around $11 a month!

22 August 2008, 2:38 PM (3 months ago)report abuse Send to a friend reply

plutonium210 (Frequent poster):

This suspiciously sounds like a subliminal incentive for Aussies to adopt their overpriced wireless .......... Those thieving BASTIDS >:[

22 August 2008, 3:47 PM (3 months ago)report abuse Send to a friend reply

bdude (New user):

Typical Telstra to up the prices on those who can afford it the least.

22 August 2008, 4:03 PM (3 months ago)report abuse Send to a friend reply

Tin (Advanced Forumologist):

Typical Telstra... Upping the price immediately before or after announcing record profits. What's worse is that they continuously do it with a straight face!

22 August 2008, 4:48 PM (3 months ago)report abuse Send to a friend reply

McBanjo (Regular user):

They're just taking advantage of their market position. If you don't want to pay their price, you don't have to. But they'll keep upping the price until you go to other alternatives.

22 August 2008, 5:52 PM (3 months ago)report abuse Send to a friend reply

Tin (Advanced Forumologist):

I think you'll find that for millions of Australians, the options are Telstra or none. In a modern world, it's kind of hard to take the none option.

22 August 2008, 6:45 PM (3 months ago)report abuse Send to a friend reply

Raindog (Advanced Forumologist):

Quoting Tin:
I think you'll find that for millions of Australians, the options are Telstra or none.

But I can assure you, for those of us that can take the No Telstra option, it feels really satisfying. :>


25 August 2008, 8:16 PM (2 months ago)report abuse Send to a friend reply

bdude (New user):

Well actually, some people do have to use them, as they still are the only provider with a "Budget" line rental. I wouldn't have minded if they lifted line rentals on the more expensive plans, but this is just taking advantage of pensioners, low-income earners and those other who are struggling in these times.

22 August 2008, 7:01 PM (3 months ago)report abuse Send to a friend reply
22 August 2008, 8:13 PM (3 months ago)report abuse Send to a friend reply

TuffGuy (New user):

Well I guess they have to pay for both Sol's next payrise and the employment of more of his American mates somehow.
Also given the line rental is a charge that goes back to the days of yore (and today is completely irrelevant as there is no maintenance on lines, the cost of which is recouped in other ways already) why can't the government step in and MAKE them cancel it instead of sitting by letting them increase it.

22 August 2008, 10:36 PM (3 months ago)report abuse Send to a friend reply

AndyCee (Cornerstone member):

Makes me feel a bit better for shelling out for Virgin's "broadband at home" deal.

Many of my friends pay line rental and have a home phone number, but don't know the number or use the line.

23 August 2008, 1:41 PM (3 months ago)report abuse Send to a friend reply

GoughLui (Cornerstone member):

I think this is absolutely the worst thing to be doing - especially for Telstra. There's a heap of competition out there - and by raising line rentals and costs, that would only spur more users to look into alternatives - Virgin Broadband @ Home, Naked with VoIP and or mobiles. Then Telstra will go back to whinging about how their competitors are bashing them by buying people lines under an Unbundled Local Loop contract ... and complain that they're dying and jack up those prices too. From what I can see, given the alternatives, line rental should become CHEAPER because of the competition that's available and all the other alternatives.

24 August 2008, 2:44 PM (2 months ago)report abuse Send to a friend reply

anonymous user Anonymous user