KEY POINTS:
Telecom has finally pulled the plug on its service where people could rent the telephone in their house or flat.
A hangover from last century's government monopoly on telecommunications, the rental service has declined in popularity since people were able to buy a variety of phones to plug into their landline.
Consumer marketing general manager Kevin Bowler said only 90,000 customers, less than 4 per cent, now rented their phones.
Renters had decreased by 40 per cent in the last three years.
The service was withdrawn for new customer connections in 2001 but continued as an option for those who wanted to stay with renting.
They paid $4.01 or $4.95 a month, on top of the monthly line rental of $41.20.
Mr Bowler said the company would stop charging phone rentals and all customers could keep their telephones from July.
However, replacements would not be available.
Glen Innes Community Advisory Bureau budget adviser Ivan James said a landline in the home was considered a luxury item when it came to balancing budgets.
"A lot of people have turned to cellphones where they do not pay for inward messages and there is a toll bar.
"They pay only for calling from a prepaid card - it's a much cheaper way than landline rental."
Greypower Auckland chairman Jens Meder said Telecom's waiving of the rental and gift of the phones was generous.
