Australia's dominant telecommunications giant, Telstra, has announced another significant round of price increases for its mobile plans, a move set to impact close to nine million customers across the nation. This marks the second such hike within a single year, with some plans seeing costs surge by as much as 17 percent.
Detailed Breakdown of the Price Adjustments
The changes, which will take effect from May 5, see Telstra's Basic Postpaid Plan rise from $70 to $74 per month. The Essential plan, offering 180GB of data, will increase from $80 to $84. However, the premium plan providing 300GB will remain at its current price of $99.
Notably, Telstra's cheapest starter plan, which includes 5GB of data, will jump from $50 to $55 for existing customers. This plan will no longer be available to new subscribers after the implementation date. Additionally, prepaid mobile plans will also see a $5 monthly increase.
Financial Context and Consumer Backlash
This announcement follows Telstra's impressive financial performance, with profits surging by 8.1 percent to reach $1.2 billion in the latter half of 2025. During this same period, the company cut more than 1,000 jobs. Under the leadership of CEO Vicki Brady, Telstra's underlying earnings also grew by 4.7 percent to $4.45 billion.
The price rises have been met with sharp criticism from consumer advocacy groups. The Australian Communications Consumer Action Network (ACCAN) described the increases as a 'slap in the face for millions of customers.'
ACCAN chief executive Carol Bennett highlighted Telstra's robust financial health, pointing out that the company had recently reported record profits. She stated, 'Before this announcement, 28 percent of people reported they were unhappy with the cost of their mobile plan. As cost-of-living bites, Telstra mobile customers should not be asked to shoulder price increases that outpace both inflation and community expectations.'
Bennett encouraged consumers to explore alternative, more cost-effective mobile phone plans that do not carry a premium price tag.
Impact on Affiliate Brands and Market Dynamics
The price increases extend beyond Telstra's core offerings to its low-cost affiliate brands, Belong and Boost. Both will raise their plan prices by $4 each, representing a 13.3 percent increase. Furthermore, Telstra's 25GB mobile bundle deal has now risen from $52 to $61 per month, reflecting a 17 percent hike over the past year.
Mobile plans are a crucial revenue stream for Telstra, generating approximately $3 billion annually and accounting for more than a quarter of the company's total earnings.
Industry-Wide Pressures and Justifications
Telstra, along with other major providers like TPG Telecom and Optus, has previously indicated that customers would face higher costs due to the Albanese Government's plans to charge $7.3 billion for access to spectrum used for mobile networks. Telstra has argued that the current price rises are necessary to fund improvements to its 5G network infrastructure.
The Daily Mail has reached out to Telstra for additional comments regarding these developments.
