Most Telstra postpaid and prepaid mobile plans will see a price increase of between $4 and $5 from May 5. This will make Telstra's cheapest mainline postpaid plan $74 per month with a 50GB allowance, and its cheapest mainline prepaid plan $44 per recharge with a 20GB allowance.
Not only are Telstra's hikes happening against a background of increased fuel prices, interest rate rises, and the component crisis, they coincide with the telco's coverage map fight. Telstra could see a million square kilometres wiped from its coverage map under new standards put forward by the Australian Communications and Media Authority (ACMA), which proposes that areas with signal strengths lower than -115dBM be declared as not having usable services.
Telstra is arguing against the draft standard, with Group Executive for Global Networks and Technology, Shailin Sehgal, saying that more than 1.5 million of its customers use coverage below -115dBM each month.
"Every day in these coverage areas 700,000 voice calls are made, 750,000 texts are sent, and 300TB of data is transferred," wrote Sehgal in a post on the Telstra blog.
Sehgal did, however, also note that the new standard could reduce Telstra's incentive to invest in regional coverage.
"If the draft standard is introduced, the incentive for us to continue investing in regional areas — including at the edge of the network when the comparable map would not represent much of this coverage — is diminished," wrote Sehgal. "This would mean customers in regional and remote areas get less and poorer service over time."
At the same time, Telstra Group Executive for Consumer, Brad Whitcomb, wrote, in a separate blog post, that the price increases are necessary to fund ongoing network investment. While not all network investment happens in regional areas, Telstra's network footprint is a key point of difference for the brand.
A Telstra spokesperson told WhistleOut that these are two separate matters.
"A lot of the investment in our network is in performance (capacity and 5G roll out), reliability and security, not just expanding our network footprint at the edge, which is what could be impacted by the ACMA decision," said the spokesperson.
The spokesperson also pointed to the $12.4 billion Telstra has invested in its mobile network, with $4.7 billion of that going to regional areas.
Below is how pricing is changing for Telstra's postpaid Upfront plans, which either be purchased as a SIM-only plan or bundled with a new phone:
| Plan | Old Pricing | New Pricing |
|---|---|---|
| Starter | $50 per month for 5GB | $55 per month for 5GB |
| Basic | $70 per month for 50GB | $74 per month for 50GB |
| Essential | $80 per month for 180GB | $84 per month for 180GB |
| Premium | $99 per month for 300GB | $99 per month for 300GB |
| Mobile Bundle | $57 per month for 25GB | $61 per month for 25GB |
Note that Telstra will retire its "Starter" plan on May 5. This will no longer be available to new customers, but existing customers will stay on it at the increased rate.
And here is how pricing is changing for Telstra's prepaid plans:
| Expiry | Old Pricing | New Pricing |
|---|---|---|
| 7 days | $13 for 3GB | $15 for 4GB |
| 28 days | $39 for 15GB | $44 for 20GB |
| 28 days | $49 for 25GB | $54 for 35GB |
| 28 days | $59 for 35GB | $64 for 45GB |
| 28 days | $69 for 70GB | $74 for 80GB |
| 6 months | $180 for 70GB | $200 for 80GB |
| 12 months | $350 for 165GB | $395 for 180GB |
Telstra's mobile broadband plans are subject to its smallest price increase, with the bill for these customers going up by just $3 per month in most cases.
| Plan | Old Pricing | New Pricing |
|---|---|---|
| Small | $30 per month for 30GB | $33 per month for 30GB |
| Medium | $65 per month for 100GB | $68 per month for 100GB |
| Data Bundle | $15 per month for 10GB | $20 per month for 10GB |
Telstra is even increasing the cost of its eSIM smartwatch plan from $5 to $8. Dubbed the "One Number" plan, this allows smartwatch users to share their primary phone number with their wearable to continue to receive calls and use data when away from their handset.
Alongside the price increases, Telstra will introduce a new "Access" plan and a seniors' discount.
The Access plan will have 5GB of data, but will have capped download speeds from June. Telstra has yet to clarify pricing, but download speeds will be capped to 5Mbps and upload to 3Mbps. Customers will still be able to use the connection at 1.5Mbps after they go over their 5GB. Hotspotting will be limited to 200MB per month.
"The plan is designed to support calling, texting, emails and checking websites and SD video calling, but not suitable for higher data usage needs, like HD streaming," said a spokesperson.
The seniors' discount will kick in from July, and anyone with an eligible concession card will be able to get a 10% discount on any core Upfront postpaid plan.
Telstra is also pointing to its budget brands Boost and Belong as an option for price-sensitive customers. Here are the cheapest plans from Boost and Belong:
Telstra's price increases only serve to solidify its position as Australia's most expensive telco. At $74 per month, Telstra's cheapest postpaid plan will be $19 per month more expensive than Optus' cheapest option, and $21 more expensive than Vodafone's, excluding promotional discounts.
Prices are even cheaper when you look outside of the Big Three providers. For comparison, here's a selection of popular plans in the WhistleOut database, sorted by price point.
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Alex Choros
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