The Australian Competition and Consumer Commission notes Telstra's announcement of its Goods and Services Tax inclusive prices, ACCC Chairman, Professor Allan Fels, said today.
"Telstra proposes an average price increase of 8.5 per cent across its extensive range of products", he said.
"Telstra estimates that customers will receive a benefit of $270 million from the combined effect of the removal of Wholesale Sales Tax and from the cap on the standard untimed local call.
"The standard untimed local call will remain unchanged at 22c despite the application of the 10 per cent GST on local calls - that is, Telstra will absorb this effect.
"Telstra estimates that the average home telephone bill will rise by between approximately seven to eight per cent.
"Telstra has had discussions with the ACCC about the pricing legislation and Pricing Guidelines.
"Telstra has submitted a Public Statement of Compliance to the ACCC.
"The ACCC has not accepted this Public Statement of Compliance at this time. In particular, it is concerned about some price rises of 10 per cent that are in the overall Telstra package.
"The ACCC will further investigate these price changes.
"The ACCC will hold further discussions and seek further information from Telstra. The ACCC is also looking into some rises of 10 per cent by some other telephone companies".
