Telstra Announces Mobile Plan Price Hikes Despite Previous CPI Pledge

By Madz Dizon

Jul 09, 2024 08:17 PM EDT

Telstra Announces Mobile Plan Price Hikes Despite Previous CPI Pledge
A man walks past the office of Australian telecoms company Telstra in the central business district of Sydney on May 21, 2024.
(Photo : SAEED KHAN/AFP via Getty Images)

Mobile plan prices are set to increase for Telstra customers following the recent announcement by the telecommunications company.

Effective August 27, postpaid customers will experience a change, while prepaid customers will be affected starting October 22.

Telstra Announces New Price Hike

According to Telstra Consumer Group Executive Brad Whitcomb, customers can expect a slight increase in their monthly bills. Premium plans will see the highest price increase, going from $95 per month to $99 per month.

The prices of basic plans will be increasing from $62 to $65, essential plans from $72 to $75, and bundle plans from $50 to $52. The prices for the Starter plan will remain unchanged despite the recent price increases. The monthly rate will continue to be $50, according to Daily Mail.

There will be an increase in data allowances for starter plans, going from 2GB per month to 5GB per month for use in Australia. Additionally, speed caps will no longer be applied to starter and basic plans for use in Australia.

As part of the recent updates, the availability of the Large Data Plan will be discontinued starting from August 27.

In May, Telstra made a mysterious announcement regarding pricing, stating that it would no longer implement the annual inflation-linked July adjustment. However, the company did not provide any indication of how it plans to handle pricing going forward.

Following Telstra's CEO, Vicki Brady, announcing a 10% reduction in its workforce, the company aims to reduce costs and fulfill its previous profit guidance to shareholders.

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Telstra Seeks Products, Services Consistency

Despite the strong performance of its mobile division, which benefits from improved network coverage and loyal customers, other business units, such as the extensive enterprise unit that offers communication and technology services to corporations and governments, contribute a significant portion of the company's overall income.

According to The Sydney Morning Herald, the company has been facing challenges in its enterprise business for over a year due to the growing popularity of internet-based services offered by software companies, which has impacted its profits.
Most of the redundancies will occur in this division.

For Telstra shareholders who have experienced a lack of positivity this year due to the decline in share prices by approximately 5.5 percent, the pricing announcement provided a sense of relief.

The company's shares experienced a significant increase of over 3% by early afternoon, surpassing the ASX 200's 0.7% rise.

Telstra stated that they have simplified their pricing approach to ensure consistency across their products and services. The statement emphasized the importance of price changes in supporting investments in mobile coverage, performance, local support, and security improvements for their services.

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