Friday, September 15, 2006
Schools feel bullied as Telstra raises line rental
ABC NEWS ONLINE
Telstra has been accused of bullying public schools by increasing line rental fees for schools that use other phone companies services.
The telco has defended the move, saying its shareholders are suffering.
Telstra has confirmed it is no longer offering a discount on line rental rates for schools that do not use Telstra to make their calls.
The chairwoman of the Public Schools Principals Forum, Cheryl McBride, says her school feels bullied.
"We swapped over to Optus and so our line rental actually doubled," she said.
Telstra spokesman Warwick Ponder says it offered reduced line rental rates of $19 a month to public schools, but schools whose business goes to other companies now have to pay $35 a month.
"We simply can't subsidise competition in this way, Telstra shareholders won't cop it," he said.
He says the school have chosen to take their business to another carrier.
"We're happy to give them subsidised rates if they're doing their business through Telstra but Telstra isn't a government department.
"We don't need to be in the business of subsidising competition - we're a business like any other business.
"We need to be on a level-playing field with some of these overseas companies."
Mr Ponder says Telstra is happy to talk with individual schools about their needs.
New South Wales Opposition Leader Peter Debnam says Telstra's stance is unacceptable.
NSW Education Minister Carmel Tebbutt also says it is unfair and she will be asking the Federal Government to intervene.
"The Department's written to Telstra urging the company to continue with the existing line rental rate , so we'll see what Telstra's response is to that," she said.
"But I'd also like to see the Federal Government step in - they're the majority shareholder of Telstra.
"They should make sure that public schools get the best possible deal and that Telstra's not taking advantage of public schools."
Telstra has been accused of bullying public schools by increasing line rental fees for schools that use other phone companies services.
The telco has defended the move, saying its shareholders are suffering.
Telstra has confirmed it is no longer offering a discount on line rental rates for schools that do not use Telstra to make their calls.
The chairwoman of the Public Schools Principals Forum, Cheryl McBride, says her school feels bullied.
"We swapped over to Optus and so our line rental actually doubled," she said.
Telstra spokesman Warwick Ponder says it offered reduced line rental rates of $19 a month to public schools, but schools whose business goes to other companies now have to pay $35 a month.
"We simply can't subsidise competition in this way, Telstra shareholders won't cop it," he said.
He says the school have chosen to take their business to another carrier.
"We're happy to give them subsidised rates if they're doing their business through Telstra but Telstra isn't a government department.
"We don't need to be in the business of subsidising competition - we're a business like any other business.
"We need to be on a level-playing field with some of these overseas companies."
Mr Ponder says Telstra is happy to talk with individual schools about their needs.
New South Wales Opposition Leader Peter Debnam says Telstra's stance is unacceptable.
NSW Education Minister Carmel Tebbutt also says it is unfair and she will be asking the Federal Government to intervene.
"The Department's written to Telstra urging the company to continue with the existing line rental rate , so we'll see what Telstra's response is to that," she said.
"But I'd also like to see the Federal Government step in - they're the majority shareholder of Telstra.
"They should make sure that public schools get the best possible deal and that Telstra's not taking advantage of public schools."
# posted by Peter Saville - IT Consultant @ 10:47 PM 
