Lobby group calls for better phone deal

The Telecommunications Users Association claims Telecom is taking advantage of a market monopoly as the company and Vodafone increase prices.

Telecom is raising its home rental charges by $2.35 a month for most customers bringing the standard charge to $42.20 per month. Customers in Wellington and Christchurch where rival Telstra Clear operates, will now pay $34.80 a month from $32.85.

Vodafone has increased its international text rate by 10 cents, to 30 cents per message.

TUANZ Chief Executive Ernie Newman said a 50 per cent rise in the cost of sending a text message is absurd. He said New Zealand already has some of the highest cell phone charges in the OECD and Vodafone's attempt to hide the increase as a prize promotion is not on.

But he also believes it's time Telecom released its hold on its lines. He said every other country in the developed world, bar New Zealand and Mexico, has unbundled their loop which gives competitors access to the lines.

Mr Newman said New Zealand should have unbundled in 1994 when it had the chance.

- NEWSTALK ZB