The Shadow Minister for Competition Policy and Consumer Affairs said the announcement was good news for consumers and, in particular, good news for low-income earners.

"The fee disadvantaged the poor, but it also discriminated against those people who did not have a computer and did not have an internet connection.

“Many of these people are elderly people 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.

“Telstra’s new CEO has pledged to improve the company’s customer service and this is therefore a welcome decision.

"I know all Telstra customers will appreciate any move which delivers improved services plus a more effective and efficient telecommunication sector.”

Mr Hartsuyker said instead of companies penalising customers who do not pay their bills electronically, there needed to be a greater focus on incentives for those that do.

“Consumers take a very cynical view of businesses that impose additional 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 Hartsuyker called on other companies which imposed administration charges on their bill payments to review their practices.

“Many companies spend huge amounts on marketing themselves as customer friendly brands," he said.

"Some of these organisations might find they are more appealing if they treated their customers with more respect.”