Telstra, Australia's largest telecommunications company, has announced significant price increases on its mobile plans, affecting millions of customers. The standard monthly plan will rise from $70 to $74 for 50GB of data, marking the second price hike in less than a year. Additionally, Telstra has closed its cheaper 'starter' plan to new users, further limiting affordable options.
Consumer advocates have criticised the increases as 'unreasonable', especially given Telstra's strong financial performance. The company reported a near 10% rise in net profit to $1.2bn in its most recent half-year results. Carol Bennett, chief executive of the Australian Communications Consumer Action Network (ACCAN), stated that the price rises are disproportionate and put pressure on households already struggling with rising mortgage rates and petrol prices.
The price hikes have also enabled rivals such as Optus and Vodafone to implement similar increases. According to analysis by Canstar Blue, Telstra now charges $14 more per month than Optus for its standard plan, while offering 10GB less data. This shift comes after Optus suffered high-profile network failures, reducing competition in the market.
Telstra defends the price rises as necessary for investment in network performance, reliability, and security, including 5G expansion and anti-scam measures. However, experts suggest customers should shop around for better deals. Tara Donnelly, utilities editor at Canstar Blue, noted that better plans and prices are available for those who seek them out.
The Australian Communications and Media Authority (ACMA) recently ruled against Telstra's coverage claims, further undermining the company's justification for its premium pricing. Telstra hopes some customers will switch to its lower-cost brands like Boost and Belong, though prices there have also increased.
