Fed; Telecommunications cheaper now than in recent years-Howard

00-00-0000
Fed; Telecommunications cheaper now than in recent years-Howard

Prime Minister JOHN HOWARD has defended Telstra's planned price rises, saying the costof telecommunications in Australia has fallen in recent years in relation to the costof living.

Mr HOWARD's told Sydney radio 2GB that a government-approved increase in Telstra phoneline rentals is justified because it's one area where prices have actually been falling.

Mr HOWARD says the disadvantaged won't be left worse off after the rise because specialmeasures have been arranged to compensate them.

Telstra said on Tuesday tt would hand out $150 million in benefits to the needy aftergaining federal government approval to raise phone line rentals by about $2 a month forfour years.

And Mr HOWARD says the deal has the approval of the Australian Council of Social Services,which represents all of the welfare bodies.

AAP RTV hn/nf/rt

KEYWORD: TELSTRA HOWARD (SYDNEY)