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Telstra Price Rises ‘Necessary’

Telstra Price Rises

The telco has asked the Australian Competition and Consumer Commission for permission to raise wholesale access charges by 7.2 percent.

Telstra said it needs the price hike to account for building and maintaining its fixed-line network, which has about 9 million active services.

The rise would affect almost every Australian with a phone line or an Internet connection, due to the former monopoly Telstra holds over the copper phone lines.

Telstra’s proposal would see the monthly price for a wholesale line rental rise from $22.84 to $24.48. For Telstra the price hike would be an additional source of revenue, on top of the $11.2 billion is to be paid by NBN Co and the Government to disconnect customers existing services and lease its pits and pipes for the NBN’s construction.