The Australian Competition and Consumer Commission today issued its annual assessment of Telstra's compliance with the price control arrangements.

This is the second report prepared under the Government's latest price control arrangements which apply for the years 2002-03 to 2004-05.

"The ACCC is satisfied that Telstra has adequately complied with its price control arrangements", ACCC Chairman, Mr Graeme Samuel, said.

"The ACCC is concerned, however, that changes in Telstra's pricing of services to pensioner customers has permitted further increases in line rental prices. The ACCC considers that this practice by Telstra is inconsistent with the structure and objectives of the price control arrangements".

The report can be obtained from the ACCC's website, ACCC offices or by calling 1300 302 502.