We're making some changes to our mobile pricing this year, here's why

We're getting ready to make changes to the pricing for most of our postpaid and pre-paid services. These won't kick in until August and October, respectively, but we want to give you plenty of notice and share why we're changing.
Brad Whitcomb · 09 July 2024 · 6 minute read

 

Long story short

If you've only got a minute, here's what you really need to know:

  1. We're increasing most of our prices for postpaid (hand-held) and pre-paid plans for a number of reasons including to help us keep investing in the performance, reliability and security of Australia's largest mobile network. Here’s what it takes to keep it running.
  2. Increases on average are between $2 and $4 per month for most plans.
  3. Prices aren't changing straight away: postpaid prices change on 27 August 2024 and pre-paid prices change on 22 October 2024. We'll be in touch over the coming weeks to give you the details on how your pricing is changing.
  4. We have support available for those who need help.

Read more below to find out what is changing, when and why.

 

 

What's changing?

In the coming weeks, we’ll be changing the prices of our mobile postpaid and pre-paid plans, as well as pre-paid mobile broadband services.

The price for most plans will increase between $2 and $4 a month. 

Prices won't be changing straight away, however. These changes will take effect from 27 August 2024 for postpaid customers and 22 October 2024 for our pre-paid customers.

The price of the postpaid Starter Plan will remain unchanged and from 27 August, the data allowance increases from 2GB per month to 5GB per month (for use in Australia). That means more value for the same price. 

Additionally, we will be removing speed caps on the Starter Plan and Basic Plan, so you can get uncapped 4G and 5G speeds (within your data allowance) for use in Australia no matter which in-market post-paid plan you're on.

For postpaid mobile broadband, our Large Data Plan also won’t be available to purchase on and from 27 August 2024, but existing customers can remain on this plan until further notice.

Check out the table below to see how the pricing structure for our post-paid and pre-paid services are changing.

 

 

Why are we changing some of our prices?

In May 2024, we let our postpaid mobile customers know that we were moving away from our CPI-linked annual pricing review.

This change simplified our pricing approach to be more consistent across our products and services, and also reflected there are a range of factors that go into any pricing decision.

It takes a lot of work and cost to run a mobile network as large as ours, and even more to support the increased usage we have seen on our network

The investments we make in our mobile network don't just help to keep your phone connected to your favourite content and apps. We know those are important, but our network does so much more every single day. 

Our connectivity is at the heart of the way Australia works and lives, supporting everything from major transport networks that get you from A to B, through to payment services for major banks and retailers, and even critical infrastructure that helps keep us safe everyday.

These price changes help us to keep investing in mobile coverage, performance and local support, as well as ongoing investments to improve the security of our services.  We monitor our network 24/7 to help protect against scams by blocking malicious calls and texts from reaching you.

Changing our prices is always a difficult decision, especially in the current climate. But if you look at the broader context around pricing, data from the Australian Bureau of Statistics shows that telecommunications pricing, which covers all telecommunications equipment and services beyond just mobile price, have not increased for consumers anywhere near the rate of other consumer household goods and services over the last decade. In fact, according to this data in eight of the last 10 years, those prices have actually deflated.

Check out the graph below, based on data from the Australian Bureau of Statistics which shows a comparison between how pricing has changed for other goods and services compared to telecommunications equipment and services.

 

 

 

What if I need help?

We have support available for those who need it as we know some are doing it tough, and we're conscious of the impact on our customers.  There are lots of ways to reach us if you need to talk about your service.

For any of our customers who need payment support

We have a range of options to help postpaid customers who need payment assistance, including giving more time to pay, a tailored payment plan, and reviewing accounts to see if the customer might benefit from moving to a more affordable plan or product, or removing any services or features not needed. In some cases, we will also consider waiving some of your fees or charges, discounting a charge or applying a credit on your account.

For our pre-paid customers we can support with recharges for their service.

We are also offering a few additional measures for our pre-paid and postpaid customers.

For postpaid customers who need support

The price of our postpaid Starter Plan will remain the same, and from 27 August 2024 we will increase the data allowance from 2GB to 5GB (for use in Australia). 

For our concession customers with a valid Health Care card, Pension Concession card, or Department of Veteran’s Affairs gold card, we will also retain our $19/mth discount on the Starter Plan. 

This means our concession customers on the Starter Plan will get more value, for the same price. 

For pre-paid customers who need support

For our pre-paid customers, from 22 October the Telstra Top Up program is increasing its free pre-paid recharge from $160 to $180 with 70GB of data (valid for six months), to ensure customers needing financial assistance get the same amount of value. 

Customers will now also be able to access the Top Up directly from us as well as through community partners using InfoXchange’s case management system, with the program available to 30,000 customers.

 


 

 

We have a wide range of plans that give our customers choice and flexibility in deciding on the best option for their circumstances – postpaid, pre-paid, and Belong – and we can help our customers understand which option is right for them.

Importantly, our month-to-month plans with no lock-in contracts give our customers the flexibility to move between plans.

In FY23, Telstra supported over 1 million customers in vulnerable circumstances to stay connected and contributed over $90 million in value through our social and community investment programs, including Telstra Top-Up; the School Student Broadband Initiative and our ongoing payment assistance program.

Frequently Asked Questions

The price changes for our pre-paid recharge amounts are relative to their expiry period. When the increase for a pre-paid plan with long-expiry periods (e.g. 6 months or 12 months) is averaged out to a monthly rate, the effective monthly increase is between $2.50 and $4 a month depending on your recharge amount.

Whenever we review our pricing, we strive to strike the right balance between our ability to invest in our network, to provide the best possible mobile products and services that we can, our business needs, and the value and affordability of our plans.

 

Providing customers access to Australia’s largest and most reliable mobile network is our priority. These price changes help us to keep investing in our mobile coverage and performance, as well as improving the reliability and security of our services, while responding to increased usage on our network. We have around one million square kilometres more coverage than any other mobile network, 24/7 network monitoring to help protect against scams by blocking malicious calls and texts from reaching you, and support from our local teams.

We have a range of payment assistance options to help customers if they are having problems paying their bill or invoice for any reason, including for post-paid customers giving more time to pay, a tailored payment plan and other options, including those that can keep customers connected. In some cases, we will also consider waiving some of your fees or charges, discounting a charge or applying a credit on your account. For our pre-paid customers, recharges for your pre-paid mobile plan may be available. View our Payment Assistance Policy here Telstra Payment Assistance Policy

No, we have not calculated our prices based on an overall percentage. We announced in May we were moving away from our annual CPI based review of postpaid mobile plans to simplify our pricing approach across our products and services.

We will shortly start communicating to our customers about their individual services. Depending on how you receive correspondence from us, you’ll either receive an SMS or an email in your inbox in the coming days if you communicate with us digitally, or a letter in your mailbox over the coming weeks.

We have a lot of ways to help make sure you’re on the right service for your needs. We have a wide range of plans that give our customers choice and flexibility in deciding on the best option for their circumstances – postpaid, pre-paid, and Belong – and we can help our customers understand which option is right for them. 

Importantly, our month-to-month plans with no lock-in contracts give our customers the flexibility to move between plans. 

Reach out to us either via phone, the My Telstra app or even book an appointment at a store and we can assess your usage, remove products you may not need or talk you through your other plan options.

By Brad Whitcomb

Group Executive, Telstra Consumer

Brad Whitcomb joined Telstra in January 2023, bringing extensive Australian and global experience across the telecommunications and technology sectors. As Telstra’s Group Executive, Consumer, Brad leads the team responsible for creating and delivering the best experiences possible for consumers and small business customers.

Across his career Brad has held a number of leadership positions spanning strategy, product development, marketing, sales, customer experience, and business transformation. Immediately before Telstra, he was at nbn™ Australia for eight years, in various leadership positions including Chief Customer Officer. His prior experience also includes two stints at Vodafone as Australian Chief Strategy and Business Transformation Officer and 11 years at Vodafone in both the US and Japan, spearheading corporate development projects and large transactions. Originally from the USA, Brad holds an MBA from Saint Mary’s College of California and a Bachelor of Economics from the University of California, Santa Barbara.