ACCC looks in to Telstra's mobile user lock-in

Australia's competition watchdog has started investigating Telstra's new mobile call rates, which ultimately lock customers into 12-month contracts and counteract mobile number portability.

The dominant telco released details of its new mobile pricing, more4you, to the public today and according to Australian Competition and Consumer Commission (ACCC) senior director of access, Chris Pattas: -We have started our discussions with them [Telstra]."

Pattas said the ACCC had -no firm response" to industry criticism that the new pricing regime was anti-competitive and worked against the introduction of mobile number portability (MNP), which was supposed to increase competition in the market, in just September of last year.

The new pricing rewards -member customers" with monthly cash bonuses and savings of between AU$60 and AU$240 a year. However, members are tied into a 12-month contract, incurring a stiff AU$150 fee for early termination.

Telstra's phasing out of handset subsidies -- whereby customers are contracted to the carrier - was expected to open up the market to more customers who could pursue MNP. But with increasingly fewer contractual subsidised handset deals around -this is another way to lock consumers into contracts," Ian Hamilton, content editor infochoice.com.au - which compares mobile phones and plans - told ZDNet Australia.

-Telstra's latest move to lock people in for 12 months moves to counter Mobile Number Portability," he added. -This clearly seems to be what Telstra is doing."

Telstra will have phased out its handset subsidies by January 23, the date the new loyalty more4you initiative comes into play.

The ACCC says it has more meetings scheduled with the telco heavyweight early next week.

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