Call costs down but local is far behind

Research by the Department of Communications, IT and the Arts, shows that since deregulation in 1997 STD and international call costs have dropped by up to 83 per cent. However, the cost of local landline calls – opened to competition only a year ago – and mobile calls have benefited little from the price war. Despite a 40 per cent decrease in price for the best local call prices, monthly access fees have increased by 19 per cent as telco companies try to make up for cheaper calls. Similarly, off peak landline calls to mobiles are only 8 to 17 per cent cheaper, a saving of 1.5 to 3.6 cents a minute. The entries of new telco companies have forced down international call rates, now 83 per cent less than they were three years ago, whilst STD calls are 49 per cent cheaper compared to 1997.

‘Phone costs drop 83pc but local calls miss bonanza’, The Daily Telegraph, 05/10/00, p 14.