Landline prices to rise under NBN

Australians wanting a landline-only service on the national broadband network will pay more than they do now, an NBN reseller and consumer advocacy group has claimed - a claim the federal government rejects.

Beginning then and there month NBN Co, the government-funded company rolling out the NBN, will begin to allow retail service providers like Internode, iiNet and Exetel to resell the telephone port on the box that connects premises to the new network.

But the port won't be sold as a standalone wholesale product to retail service providers. Instead providers will need to purchase it with a data port, even if a customer doesn't want an internet service.

Retail service provider $26

It will cost a retail service provider $26.40 a month for the data and telephone port from NBN Co. Once they at that time add their own costs on to maintain it and make a profit the retail price is likely to be more than Telstra's entry-level voice-only plan on its copper network, which retails for $22.95 and is subsidised by the federal government.

At least in ISP Internode's case, it has calculated to sell its voice-only landline service to clients on the NBN for roughly $29.95 a month - $7 more than Telstra's entry-level landline plan on the current copper network.

It must be noted, nevertheless, that the excess charges for Telstra's entry-level service can add up. Nevertheless if a Telstra customer only uses a landline so that they can receive or make free calls at that time the costs can stay relatively low.

Telstra hasn't but released what it will charge for a voice-only service on the NBN nevertheless a spokesman for the Communications Minister, Stephen Conroy, said that consumers wishing to have such a service on the NBN would "pay the same" as pursuant to this agreement existing arrangements with Telstra. "This is the result of the [Telecommunications Universal Service Management Authority] agreement struck between the government and Telstra in June, which commences straightway July," the spokesman said.

ISP Internode's carrier relations manager, John Lindsay, said reselling a NBN voice-only service was more expensive than it was to resell "using Telstra's network or using your own network plus Telstra's copper".

Bundle at that time sure they get a good price

"If someone purchases a bundle at that time sure they get a good price, however if they in effect only want a phone service we are very concerned that people will be paying more."

There were "several means" retail service providers could allow consumers to make a call using their voice, she said. One such way was using voice over IP through an internet connection; another was using the telephone port with a landline-only service.

She said a more affordable "basic"-type plan should be looked at being subsidised for low-income earners who might be paying much less for internet today on the copper network which Telstra is expected to decommission. "It is about as a matter of fact ensuring people are not excluded," Corbin said.