Since they are losing so many of their line rental customers I...

Since they are losing so many of their line rental customers I would have to assume that they are totally incompetent for putting a hike on line connection cost. HA! with my mobile phone cap there's no way I'd even bother paying $299 to get a phone connected to make a few 25c local calls and also pay $30 line rental on top of that each month. They've definitely lost the plot and this decision will put another nail in their coffin IMHO. This company love to turn the population over to their competitors by having brutal policies ... and they'll hardly be relevant in 10 years time.

Here's the report from ABC news site:
Last Update: Thursday, March 2, 2006. 7:31am

Telstra defends latest price hike
Telstra has defended its decision to charge new home owners nearly 50 per cent more for new land line telephone connections.

From April 1 it will cost $299 to connect a new phone line, up from $209.

Telstra spokesman Warwick Ponder says Telstra has been doing the new connections for below cost.

He says it only applies to homes with no previous telephone connections.

"It really just reflects the costs involved," he said.

"Telstra has been losing tens of millions of dollars per year on these sorts of activities for many years now.

"The company has made a decision that it really needs to recuperate some of those costs in a business environment in the interest of our shareholders."

Mr Ponder has defended the decision and says all businesses have to make a profit.

"There aren't too many other businesses around the place, in fact I think you'd be hard pressed finding any who come and do this kind of work below cost," he said.

"I think you should maybe talk to plumbers and roofers and energy company's who do this kind of work and you'll find that they certainly don't do it below cost either."