Mr Hawker said the announcement was good news for customers and low-income earners.

``The fee disadvantaged the poor but it also discriminated against those people who do not have a computer or do not have an internet connection,'' he said.

``Many of these people are elderly which made it a very unfair charge.

``For many they had no choice but to pay their bill either over the counter or by mail.''

Mr Hawker welcomed a pledge by new Telstra chief executive David Thodey to improve customer service.

``I know all Wannon Telstra customers will appreciate any move which delivers improved services plus a more effective and efficient telecommunications sector,'' he said.

Mr Hawker said companies should focus on incentives for customers paying bills electronically instead of penalising customers who did not use that method of payment.

``Consumers take a very cynical view of businesses that impose dhadditional administrative charges on the cost of their products,'' he said.

``If a company wishes to save money by changing customer behaviour then they should be offering financial incentives to its customer base.

``A carrot is a much more customer-friendly way to operate rather than a stick.''

Mr Hawker called on other companies which imposed administration charges on their bill payments to review practices.

``Many companies spend huge amounts on marketing themselves as customer-friendly brands. Some of these organisations might find they are more appealing if they treat their customers with more respect,'' Mr Hawker said.