Telecom's landline charges set to rise

Telecom home phone customers will pay more for their monthly bills from June.

Spokeswoman Emma-Kate Greer said the price increases were the result of a yearly review and reflected rising costs and inflation.

She said the rise would be less than $1 a month for most people, but the increase would vary depending on their pricing plans.

Some calling and service fees would also be affected.

"While we're trying to manage costs in other ways, we can't avoid passing on a modest increase to some services," Ms Greer said.

Broadband and mobile plans would stay the same.

Telecom chief executive Paul Reynolds announced this month that the company planned to cut 200 management jobs by mid-year and that more lay-offs were likely.

The job losses are part of a programme to slash the business's costs by 2013.

The chief executive of the Telecommunications Users Association of NZ, Ernie Newman, said the increases were a "simple inflationary adjustment".


Telecom landline plans in Auckland City:

* Homeline:
Old price: $42 per month
New price: $42.80

* Anytime:
Old price: $43.80
New price : $44.65

* Wiring maintenance:
Old price: $2.79
New price: $2.99