Tuesday, 01 December 2015 20:44

Just another price increase or more ‘price gouging’? Featured

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Just another price increase or more ‘price gouging’? Image courtesy of Stuart Miles, freedigitalphotos.net/images

Just a day after hiking up international mobile roaming charges by a whopping 50% and tripling excess data charges, Telstra is at it again, this time hitting consumers with the introduction of a 50 cent charge for calling directory assistance from landlines.

The Telstra decision has prompted a warning to consumers and customers of all telcos by the Australian Communications Consumer Action Network (ACCAN) that they need to be aware of “high fees” telcos (not just Telstra), charge for calls to directory assistance - "often outside of the included plan value".

There was widespread anger on Monday about Telstra’s decision to impose significant increases in roaming and data charges and, as iTWire observed, the big jump in charges looked more like ‘price gouging’ than increases justified by growing costs – especially coming in the lead-up to the busy Christmas-New Year travelling season.

Now, with ACCAN on Tuesday warning that consumers – and customers of all telcos and service providers - should be aware of the high fees charged for calling directory assistance numbers, iTWire suspects there will be more anger directed at the highly profitable, big telco with this latest decision to impose more cost increases on its customers.

Once again, we think this just reinforces our concerns about what we see as price gouging.

So, how does the ACCAN view Telstra’s imposition of the increased directory assistance call charges, seemingly, in iTWire’s view, without justification.  

We put our views on 'price gouging' to ACCAN and they responded that while they were concerned that Telstra’s fee rises for directory assistance calls will affect consumers, they “don’t have any evidence of price gouging”.

As ACCAN did point out on Tuesday, when warning consumers to be on the lookout for high directory assistance call charges, Telstra customers on the Pensioner Discount are exempt from the 50 cent charge for the calls. It also directed consumers to its ‘tip sheet’ for directory assistance call charges from a range of landline and mobile providers.

ACCAN CEO Teresa Corbin says, wherever possible, consumers should use free, online methods of accessing directory information, pointing out that it can be accessed online from the White Pages website or smartphone or even by doing a simple Google search for the company or service required.

“However, ACCAN is concerned that call charges to directory assistance numbers may unfairly impact on consumers who don’t have internet access or who aren’t comfortable using the internet,” Corbin says.

“The volume of calls to directory assistance numbers has dropped in the past few years, but there is still a significant number of Australians who don’t have access to the internet and alternative methods of accessing directory information.

”According to the ABS low-income consumers are less likely to have internet access at home and therefore they may be affected by the high call costs charged for directory assistance numbers.”

Corbin also advises that, wherever possible, consumers should avoid calling directory assistance numbers so they don’t incur high call charges.

“Much of the information provided by directory assistance numbers is available online or in the smartphone app for the White Pages. Consumers who aren’t confident accessing information electronically can order a free physical copy of their local phone book by contacting Directory Select.”  

Finally, before calling directory assistance numbers with your chosen telco, including Telstra, ACCAN urges you to first find out what the telco charges for the calls.

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Peter Dinham

Peter Dinham - retired in 2020. He is a veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

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