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Fee rises take gloss off 'cheap' call deals

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Telephone users who switched to cheaper land-line service providers after a fee rise by the main provider in January have been hit with 20 per cent increases within weeks of signing up.

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Two of the alternative residential fixed-line providers have increased their fees by about $14, with one firm informing customers - in their monthly statements - that they are now expected to pay three months in advance.

One customer who signed up to Hutchison Global Crossing's $69.80 package on February 16 was shocked to receive a bill on March 15 for more than $320.

'Without any prior notice the fee was put up to $83.80 and I was informed, via my account, that I have to pay three months in advance,' the customer told the South China Morning Post.

Hutchison Global Crossing confirmed it had received a few complaints from customers unhappy about the rise but said the increase was justified.

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'We have had the $69.80 fee for five years and this is the first increase,' a spokeswoman said. 'The adjustment was made to further our investment in infrastructure and service.'

She said the three-month prepayment policy applied only to those who did not pay their bills by auto-pay.

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