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KCCI telecommunications is facing major pressure to change its plans to increase tariffs to make up for its lack of a strong local voice service.

The telecommunications provider has been the subject of much public interest in recent weeks as it tries to address a lack of local voice services after the state government axed the network operator’s broadband service, forcing many rural communities to switch to cheaper services.KCCI is one of the state’s biggest providers of high-speed broadband and is the only provider in the state to offer a voice service in many areas.

But the company has been under pressure to reconsider its plans as the Coalition’s package of policies for the state is a major setback to its business model.

In a statement on Thursday, the company said it was “extremely disappointed” by the package of measures announced by the State Government on Monday, which included an increased tariff of 40 per cent on all the company’s fibre-to-the-node (FTTN) and fibre-optic services.

The decision to axe FTTN services and the introduction of new tariffs on its copper network mean KCCi would have to reduce its services by 25 per cent or cut back its workforce by about 300 jobs.

Kcci has not released a detailed business plan for the next two years.

In addition to the tariffs, KCCL is also under pressure from the state Government to ensure that it can continue providing high-quality voice services to the state.

In the statement, the telecommunications provider said it had been given the go-ahead by the Federal Government to undertake a “complete review of its operations and processes” in the wake of the axing of FTTN.

“This review will include a review of our long-term viability and the need to ensure we continue to provide our customers with a quality service,” the statement said.

“The Federal Government will be making further announcements in the coming months.”KCCL has faced criticism from local communities and its competitors for its service.KCDT is one such company which has had to pay out more than $1 million to consumers to access its network.

In October, KCDT had to stop services to some customers after it was unable to get the new FTTN network up and running due to the State government’s decisions.

The State Government said the decision to ax FTTN was the result of the State’s “toxic” environment, but local residents and others have criticised the move, with a number of reports alleging KCDt was the first telco to have to make a move on the issue.

The Federal government has repeatedly accused the state of failing to adequately fund its fibre-vision network.

The Government has also promised to invest more than AU$300 million into the state broadband network.

But Mr Abbott has said the Coalition will not increase the cost of its fibre to the node network, as proposed by the previous Coalition government.

Mr Abbott’s decision to slash FTTN tariff to 25 per per cent will be challenged by KCCT.KCT says it will continue to work with the State to secure the best possible solution to the network issue, including the introduction and deployment of a network with the best fibre to copper and fibre to fiber-optics options.

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