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Telstra jacks up line rental yet again

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Dan Warne03 September 2007, 9:23 AM

Telstra is increasing line rental yet again, this time targeting customers who use a different telco for long distance calls.

Hey, big spender: Telstra is hiking up line rental prices again for people who don't spend a lot on phone calls with the telco.

Telstra is jacking up line rental pricing again -- this time, for customers who have their long distance telephony preselected to a different telco.

The telco giant, which controls Australia's twisted-pair copper wire phone network, sent letters to customers on the "Homeline Part" plan, announcing their line rental would rise from the current $31.95 price to $33.45.

Telstra's move appears motivated by a desire to encourage customers to make calls on the company's premium per-minute tarrifs.

A promotion called "Line Rental Saver" will offer line rental discounts for people who spend up big on Telstra phone calls -- over $79.99 a month in calls qualifies for a $10.50 line rental discount, and the discounts go up to $100.35 off for a $600 monthly call spend.

In comparison, Optus is offering a $69.90 monthly plan which includes line rental, 2GB of ADSL2+ or cable broadband, unlimited national phone calls and unlimited calls to Optus mobiles.

However, Optus' network coverage is limited, meaning many people will not have the choice of switching from Telstra to Optus to get better value landline telephony.

Optus subsidiary Virgin Mobile is offering a $60 plan which includes 4GB of 512Kbit/s wireless internet and unlimited national calls and calls to Virgin Mobile numbers over the Optus mobile network.

Telstra spokesman Craig Middleton said Telstra was unconcerned about customer interest in the offers, saying "nobody around here is rushing to the ramparts over either of them."

"Optus' own figures ... tell quite a different story about their 'success'. Virgin Broadband is a mishmash of marketing messages that seem to be targetted at younger users who even you would know would not be satisfied with 512k or 4GB. The complexity of the product will counter any interest among mums and dads or older demographics," he said.

One more reason, it seems, why the federal government should rope in the essential infrastructure of the network to run under a govt agency rather than let any single company be the default and dominant provider while that company also seeks to compete with other players.

The network which our taxes long ago paid for should be free to access, including line 'rental' and broadband access, so that consumers can then choose which telco they use for local, national or international calls as well as broadband. Use a mix or opt for a single provider with bundling discounts, but keep it on a level playing field from the get-go rather than have one telco (Telstra) charge line rental fees that vary according to which competing telco you use for long-distance calls or broadband.

29 February 2008, 8:32 PM (1 year ago)report abuse Send to a friend

Steve the insensable:

Here here. While it might be a stretching a long bow to compare the activities of Telstra over its network access with the enclosures of the 16th century, there is a similarity wherein the users of the network are being charged for using what they and their forebears originally had free and equal access to. As for placing control of the essential infrastructure of the network under a Government agency, this would require first a radical change in the Government’s policy in relation to getting involved in the real world.

29 February 2008, 8:47 PM (1 year ago)report abuse Send to a friend

afro:

here we go again Tel$tra. i for one have stoped giving my $$$,gread,sloth gluton telstra.

29 February 2008, 8:32 PM (1 year ago)report abuse Send to a friend

Tony:

Looks like wireless and naked DSL are going to be the only way to beat the $29.95 per month line rental cost which adds up to a whopping $359.40 per year (and that's before you even lift the handset)!

The telecomms/Internet story in Oz is awful.

29 February 2008, 8:32 PM (1 year ago)report abuse Send to a friend

st:

This is exactly why I go out of my way to have nothing to do with Telstra. I moved house about 2 weeks ago and could no longer use Optus cable, so I switched to Virgin broadband and have found it to be excellent value.

As for the "complexity of the product", it's really pretty easy to use - plug in power, plug in phone, plug in computer... it works.

29 February 2008, 8:32 PM (1 year ago)report abuse Send to a friend

Anonymous111111111:

If only Virgin would plug in a tower. I'd be there in a second, if I had coverage.

29 February 2008, 8:47 PM (1 year ago)report abuse Send to a friend

Paul Jones:

I agree with your comment about Virgin - I sold one to some tech illiterate friends a few weeks ago. They love it. Works great, simple, easy, and they get lots of free stuff.

29 February 2008, 8:47 PM (1 year ago)report abuse Send to a friend

Nos20T:

Christ almighty Telstra you find new ways to make people sick!.

You continue to bite the hands that feed your money hungry anti competative corperation.

Constantly screwing people out of their money and we are paying for what?

Your backwards steps on broadband? your over priced line rentals fee's.

I really hope you get burnt telstra big time because the consumers are getting sick of your crap that you dish out.

29 February 2008, 8:32 PM (1 year ago)report abuse Send to a friend

nb:

I am reading lots about naked DSL these days, and have decided that it's the way to go ... actually doing that is proving more elusive!

Dear ED : an in depth article on naked DSL in Australia would be of great value and a good read. Please consider.

29 February 2008, 8:32 PM (1 year ago)report abuse Send to a friend

tin:

I was a little worried there when I read the headline. Fortunately it doesn't effect me this time.

Since this is clearly aimed at trying to convince people to pre-select Tesltra (either that or simply grab money they are otherwise losing), shouldn't ACCC be smacking them over the head with a rolled up newspaper for this?

29 February 2008, 8:32 PM (1 year ago)report abuse Send to a friend

scorpio:

Not realy.

Times of smacking Hell$tra by a rolled newspaper are long gone.

In today's situation it will be more appropriate basbal bat on the fingers.
One by one.
And when they finish with toes too, they have turn their attention to the knees.

That's what we're getting from same Hell$tra for years.

29 February 2008, 8:47 PM (1 year ago)report abuse Send to a friend

Mr Anon:

If Telstra were to be successful in their quest to have regulation changed in their favour, this sort of thing would only be the beginning. Give Telstra an inch and it will take 10, 20, 30, 1000 miles.

Telstra do this sort of thing with landlines because they have a near monopoly on them. Imagine if they got the near monopoly on broadband that they want. Bigponds current pricing levels would be low by comparison.

Competition and regulation are the only things saving us from paying much, much more.

I’m sure Telstra shareholders would love this because it would increase their share returns. They do need to remember that at the same time, they would be paying (much) more for their fixed line and broadband services. A false economy right there.

29 February 2008, 8:32 PM (1 year ago)report abuse Send to a friend

TechNoFear:

I have ADSL2+....unless it rains.

My ISP's wholesaler has 'no plans' to fix the fault (and there is no requirement for them to do so through the TIO/ACCC or regulations). I live 8Km from a capital city CBD so is not a remote area issue.

Currently 512Kbs would be faster (and cheaper) than my ADSL2+.

Availablity is MUCH more of an issue than speed/download limit.

29 February 2008, 8:32 PM (1 year ago)report abuse Send to a friend

Steve D:

Haha. You've got to love the Burgess style of dealing with the media. I know this wasn't Burgess, but his fingerprints are all over it - "...who even you would know would not..."

Dan, you've been put in your box there, mate. Keep up the good work.

29 February 2008, 8:32 PM (1 year ago)report abuse Send to a friend

McBanjo:

How flawed is that argument there. We (customers) don't want our companys making billions of dollars profit. I'd like to see that my money is well spent and not wasted so that you can get a $54 million dollar salary this year instead of $53 million.

Optus is obviously not as money hungry, go with them. And buy shares in Telstra.

29 February 2008, 8:32 PM (1 year ago)report abuse Send to a friend

Phil:

more dumb comments from Middleton I see - younger users not satisfied with 512k or 4GB? They must be even less satisfied with 256k and 200MB, and 15c a MB excess charges, and $30 line rentals, ADSL connection fees each time they have to move into new rented premises. Of course Telstra is worried, they're just lying while trying to put on a brave face.

Good onya Telstra, let's see if Emperor Nasi Goreng really can keep the rabbits out… I wonder what the ACCC will make of these charges, given it's plainly a move to penalise using a competitor.

29 February 2008, 8:32 PM (1 year ago)report abuse Send to a friend

SJT:

Ah Dan Warne, Australia’s journalistic answer to Dr Seuss, where have all your mindless devotees gone? Perhaps your broken record is waning? You normally whip up many more feverish comments in your perpetual Telstra bashing crusade (ah - Telstra should never have capped your plan in 2001, should they)? So here’s just a little something to help “you jack your number of comments up”! No need to thank me! Telstra are “jacking up line rental” by a whopping $1.50, obviously to encourage people away from using their competitors”! Yes and? Don’t you and your intelligentsia understand even the most basics of business - hellooo? No one in any business gives their competitors an even break – no one! Dan when you get a scoop (ha ha) do you, all in the spirit of competition of course, immediately phone the details through to your competitor(s)? Should tradesmen, shopkeepers, whoever, encourage their clientele to overlook them, in favour of their competitor? More to the point and in question to your readers, if in this situation, do you or would you promote your competitor at your own expense? No of course not, in fact quite the opposite – you would be extremely foolish to do so. But if you don’t, you should, according to your own logic, because that’s exactly what you expect Telstra to do. BTW Dan - since you’re so concerned about prices, where were you when Internode “jacked up their prices of some plans, by up to $40” (according to Whirlpool)? Oh that’s right, we love Internode don’t we and maybe we love their money even more – refer to the little logo above! Nice.

29 February 2008, 8:32 PM (1 year ago)report abuse Send to a friend

Dan Warne:

Where was I when Internode "jacked up their prices of some plans, by up to $40"?

Writing an article about it...

http://apcmag.com/6314/internode_hikes_adsl_prices

And do I ring through scoops to my competitors when I get them? No, but then i don't control the entire media industry from a distribution perspective as Telstra controls copper phone lines. You clearly haven't got even the faintest understanding of competition law.

29 February 2008, 8:47 PM (1 year ago)report abuse Send to a friend

SJT:

Thanks for the reply Dan. Yes, granted I did see the article and my point, since I have to spell it out - "no negativity" towards Internode! Had it been Telstra you would have milked it for all it's worth! As for my understanding of competition law, I can assure you that the flim-flam which comes from yourself and Telstra's competitors does not have me fooled for one moment. In the snugly regulated and cocooned world of Telecoms you may believe this to be competition but true competition is something vastly different (and you know it, although you'd never admit to it) which some just can't or conveniently don't wish to recognise!

29 February 2008, 8:47 PM (1 year ago)report abuse Send to a friend

Matt:

SJT is either employed by telstra or has his head in the sand.

29 February 2008, 8:47 PM (1 year ago)report abuse Send to a friend

Martin:

SJT definitely has his/her head in something, but it 'aint sand.

29 February 2008, 8:48 PM (1 year ago)report abuse Send to a friend

Joe Schmo:

Telstra ---phttttt what a joke they are

I can see Parliament house (Canberra) from my balcony its 5km away in a straight line

but

I can not get broadband ADSL due to Telstra not wanting to update the exchange that services my area -- there are very very limited ports and none left available

So they want the extra $$$ but refuse to upgrade infrastructure

29 February 2008, 8:32 PM (1 year ago)report abuse Send to a friend