Government’s price control review must ensure all Australians have access to affordable telecommunications

October 24, 2011

The Gillard Government must ensure all Australians have access to affordable telecommunication services as part of its review into retail price controls.  Shadow Minister for Regional Communications Luke Hartsuyker said the Government must

ensure low income earners and regional consumers don’t face increased costs as a result of the National Broadband Network.

“The price of untimed local calls, the provision of a directory assistance service and the maintenance of the Extended Zone calling arrangements are still important issues for consumers in an NBN world.   My concern is Australians who just want basic services are going to be forgotten by this out-of-touch government.   Given the massive over-investment in the NBN rollout, NBN Co will be under pressure to increase the poor return on the $50 billion project. This could have dire implications for those consumers who are least able to pay.

“As the cost of living continues to escalate under Labor, it is also essential the Government does not remove the safety net for low income earners and those who live in regional Australia.   I believe it’s essential the Government maintains the Extended Zones which ensure affordable telecommunication services are delivered to Australians who live in isolated parts of the country.   According to the review’s term of reference all policies relating to retail price controls are up for discussion,” Mr Hartsuyker said.

“They include the four regulated ‘baskets’. The first includes local and international calls plus line rentals, the second covers the basic line rental service, the third applies to the basic business and charity line rental and the fourth is connection charges.   In the dynamic sector of telecommunications, it is important Government legislation reflects existing trends but also preserves the right for all Australian to have access to services at an affordable price. I encourage any consumer or organisation which believes the current arrangements could be improved to make a submission by November 18.”