In a statement peppered with exclamation marks, ATUG managing director, Rosemary Sinclair, has told members of the user group that the price regulation framework is "ineffective in securing reasonable protection for end users".
According to Sinclair, the government has failed to meet price control objectives it set for itself when it introduced the price-capping scheme in April this year. At the time, the government promised that prices for STD, IDD, local and fixed-to-mobile services would be capped at 4.5 percent below the CPI and line rental charges at 4.5 percent above the CPI.
"Instead what we got were price increases that look way beyond the CPI plus 4 percent for basic access, no real clarity about whether call charges come down CPI minus 4.5 percent and no assurance from the approval process that the changes are a 'fair go'," said Sinclair.
Sinclair opines that the government, through the Australian Competition and Consumer Commission (ACCC), needs to abandon its hands-off approach to price controls.
"Under the current scheme the ACCC has very little scope to object to Telstra's prices and is not obliged to do so, provided Telstra meets essentially procedural requirements," she said.
Sinclair has challenged the government to make telecommunications pricing more transparent and called into question Telstra's ability to disclose its costs accurately - particularly those associated with fixed-line provision.
She argues that the current legislation could empower the government to transfer the cost reporting responsibility to the ACCC.
According to ATUG, the regulatory framework must be working before the government sells its remaining share of Telstra.
"In ATUG's view, we're not there yet," said Sinclair.
Sinclairs comments are a political windfall for Shadow Telecommunications Minister Lindsay Tanner.
"We are pleased that ATUG, the peak telecommunications users group, appears to support our view that the new Telstra price controls take more than they give and the huge increases in line rental [charges] have not lead to a reduction in local call costs," said a spokesperson for the Minister.
