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To: ms.smartest.person who wrote (1242)5/19/2001 8:35:16 PM
From: ms.smartest.person  Read Replies (1) of 2248
 
Mobile fee increase equals a cent per day for users: Alston
Friday 18 May, 2001 09:04 GMT+10:00
By AAP

A government decision to increase mobile phone carriers' fees by almost 160 per cent would cost users about 1 cent a day, Communications Minister Richard Alston said today.

Alston said noone would notice the extra cost. "Bear this in mind, with 10 million GSM users this fee increase represents less than 1 cent per user per day, which is the equivalent of two seconds of air time," he told ABC radio.

"The cost won't rise except infinitesimally. I mean, if it goes up 1 cent per day, noone will notice that."

Carriers said they were stunned by the increase, quietly announced in the Government Gazette earlier this month, and warned they would not be able to absorb the whole cost.

But Senator Alston said the price hike amounted to less than 1 per cent of the annual revenue generated by the three major companies: Telstra, Optus and Vodafone.

"We're really talking about an increase from $21 million to $53 million which is less than 1 per cent of the $7 billion in revenue that the three major ... companies derive each year," he said.

"After all, these fees haven't gone up since 1992, except a couple of CPI adjustments. And a couple of their competitors actuality paid more than a billion dollars for similar spectrum recently.

"So our obligation really is to try and recoup a fair market return."

it.mycareer.com.au
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